Luckin Coffee Plunging into India, Middle East

Chinese startup Luckin Coffee is making its first move outside its borders, with plans to open coffee shops in the Middle East and India.

Luckin, which raised $561 million in May in a U.S. initial public offering, announced in mid-July that it had signed a memorandum of understanding to set up a joint venture with Kuwait’s Americana Group to launch the business in the Middle East and India regions.

Americana Group, founded in Kuwait more than 50 years ago, operates 1,800 restaurants and 29 food production sites in the Middle East and North Africa, including the local franchises of KFC, Pizza Hut, Friday’s, Costa Coffee and other casual dining brands.

Luckin has more than 3,000 stores across China, and has been locked in a turbocharged expansion plan to unseat Starbucks as the No.1 coffee chain in the world’s second-largest economy—including a goal to surpass that 4,500-unit benchmark this year. Its strategy of lower prices, discounts, speedy delivery and promotions on social media have pushed Starbucks to form a delivery agreement with Chinese tech giant Alibaba. But the chain, which has yet to mark its second year in business, is operating deep in the red and has yet to turn a profit.

- Advertisement -

- Advertisement -

- Advertisement -

TRENDING NOW

RELATED CONTENT

Chris Baichoo of Perlick

New Appointments and Retirements at Perlick and TriMark

Chris Baichoo will become chief sales officer at Perlick as Jim Koelbl retires—plus TriMark's Kim Gill Rimsza to depart in February.

Read More...
Gaylord Texan Resort & Convention Center

WFF’s March Conference Will Have Hybrid Format

The annual conference will offer both a virtual and in-person option at the Gaylord Texan Resort and Convention Center.

Read More...

Polar King Mobile Expands Dealer Network

Partnership with Wallace Trailers helps PKM reach Tennessee and nearby states.

Read More...