KUALA LUMPUR US-listed Chinese coffeehouse chain Luckin Coffee Inc is poised to make its debut in Malaysia amid fierce market competition, sources told The Edge.

The entry comes at a time when Malaysians are spoilt for choice from the rising number of brands and outlets competing to fill in a gap left by Starbucks as the American franchise faces protracted consumer boycotts due to Middle East tensions.

Luckin Coffee will be roping in a Bursa Malaysia-listed firm as its local partner armed with an ambitious stores expansion plan in the next five years, according to sources. 

A letter of intent will be signed as early as Thursday, while the master agreement could be finalised within the next two to three weeks, the sources said.

Founded in 2017 and headquartered in Xiamen, Luckin Coffee operates 18,590 stores worldwide, excluding unmanned machines, as at March 31 this year.

In China, Luckin Coffee’s store count hit a record high with over 2,340 net new stores opened in the first quarter of this year alone. The company now has 18,558 stores in China, of which 12,167 are self-operated stores and 6,391 partnership stores.

Luckin Coffee and Kweichow Moutai Co Ltd had in September 2023 jointly-launched the Jiangxiang flavoured latte, which became an instant hit upon its release.

On its debut, it sold 5.42 million cups, raking in sales that surpassed RMB100 million , setting a record for Luckin Coffee’s new product launches. By the end of last year, the Jiangxiang flavoured latte sold a total 45.83 million cups, with total sales exceeding RMB900 million.

Outside China, Luckin Coffee has 32 stores in Singapore, its only international market.

Luckin Coffee made its Wall Street debut in May 2019, before it was delisted from Nasdaq in June 2020 following an accounting scandal. The US Securities and Exchange Commission accused Luckin Coffee of fabricating sales, as well as inflating costs and expenses.

However, its American Depository Receipts (ADRs) still trade over the counter in the US.

  - theedgemalaysia.com