China’s leading coffee retailer Luckin Coffee has reported another quarter of robust revenue growth, underpinned by rapid network expansion both domestically and abroad, according to multiple industry reports.
In its latest financial results for the fourth quarter and full year 2025, Luckin stated that total net revenues for Q4 grew 32.9 percent year-on-year to approximately RMB 12.78 billion (US$1.82 b), driven by strong same-store performance and increased customer transactions. The company also reported a net income of around US$74 million (RMB 518.2 million), though net margin declined to 4.1 percent amid higher delivery and operating expenses.
Network Growth and Store Rollout
A key driver of the company’s revenue trajectory remains its aggressive store expansion strategy. In 2025, Luckin added 8,708 net new stores, bringing the global footprint to 31,048 locations at year-end. Monthly transacting customers climbed to 94.2 million, reflecting strong consumer engagement across channels.
Earlier in February 2026, Luckin unveiled its 30,000th store, an “Origin Flagship” outlet in Shenzhen, marking a new chapter focused on integrating premium coffee quality with brand experience. The flagship combines specialty coffee offerings with a dedicated barista and event space, showcasing the company’s commitment to blending scale with elevated product positioning.
Luckin’s network now rolls out across more than 300 cities in China, covering about 94 percent of provincial-level regions, while its overseas footprint has also grown, with stores in Southeast Asia and the United States.
Franchise Model and Market Strategy
The company’s franchise and partnership model continues to be a cornerstone of its expansion strategy, particularly in lower-tier and emerging markets where local operators help drive rapid rollout and regional penetration. Revenue from partnership stores grew 39.2 percent accounting for more than one-fifth of total revenue, reflecting the strategic role of franchise partners in broadening distribution.
Luckin’s approach reflects a broader trend in the coffee marketplace, combining digital ordering, delivery channels and localized store formats to compete effectively even in mature markets. While competition remains intense and margin pressures persist from delivery costs and promotional campaigns, the overall trajectory points to sustained scale growth.
