[Starbucks Killer?] Luckin Coffee to have 2,000 stores by end of year

[sweetgrape]

How many employees does the starbuck have in China? Starbuck should retreat from China market, these jobs will return to America, Trump and normal American will be very happy for the decision, but these Chinese employees will can't pay for their next dinner, very sad.

 

[TaiShang]

Starbucks sees operating profit decline in China due to market competition

(People's Daily Online) 17:32, August 03, 2018


Starbucks witnessed an operating profit decline in the third quarter of this year, marking the first decline in the past nine years, which analysts attribute to the increasingly fierce competition in the Chinese coffee market, Beijing Youth Daily reported on Aug. 3.

Starbucks entered the Chinese market in 1999, and already owns more than 3,400 coffee shops in over 140 Chinese cities. Although developing rapidly in China, Starbucks has seen its first decline in operating profit for almost a decade.

According to the financial report of the coffee giant, its operating profit fell by 7.6 percent and same-store sales in China dropped by 2 percent year-on-year.

However, Zhu Danpeng, an analyst in China’s food industry, noted that the decline could be related to the emergence of competitors in the Chinese coffee market.

Rent and expenses in traditional coffee shops like Starbucks usually account for a high percentage of the total cost, making their beverages more expensive than those of other companies.

Luckin coffee, a competitor chain, therefore adopted a new mode that allows consumers to order coffee online and then pick it up by scanning a QR code, to lower costs and create a competitive advantage over Starbucks.

In order to speed up its development, Luckin also introduced an excellent delivery service. The average coffee delivery time is only about 18 minutes.

The development of Luckin coffee is a prime example of the transformation of many coffee brands in China, and emerging competitors also include some tea and milk tea brands.

Brands will continue to seek ways to attract consumers to compete in the Chinese coffee market over the coming three years, the analyst predicted.

http://en.people.cn/n3/2018/0803/c90000-9487681.html

Apple is killed in China. The present killing is Starbucks. I do hope US food chains will face similar fate. This is also important for health security.

 

[oprih]

Looks like starbucks is next in the very long lists of american companies that failed and got kicked out of China.

 

[TaiShang]

Looks like starbucks is next in the very long lists of american companies that failed and got kicked out of China.

Then they whine that they have been treated unfairly. They think fair competition is unfair. For them, only a privileged status is fair. Otherwise, their companies are slashed and minced in competition by their peers.

 

[Skull and Bones]

I’m a big fan of tim hortons.

 

[TaiShang]

Tencent launch partnership with Chinese coffee start-up Luckin

Rebecca Henrys Sino.uk
Published: 2018-09-08


Tencent, one of the largest internet and technology companies in the world, has launched a partnership with a coffee startup to bring everybody their favourite drink even quicker.

As of September 3, Luckin, a coffee and bakery-chain, has sold 26 million cups of coffee across its 1,003 stores across China.


"We hope the cooperation with Luckin coffee will create a new lifestyle of 'smart retail' through tie-up on user traffic, technology exploration, application scenarios and management abilities," said Lei Maofeng, deputy general manager of Tencent's payment platform WeChat Pay.

The move is said to be in response to Alibaba's partnership with Starbucks in August to deliver coffee straight to the doors of coffee-lovers. It is expected that the partnership, which will begin in Shanghai and Beijing, will cover 2,000 Starbucks outlets by the end of the year.

Daniel Zhang, Chief Executive Officer of the Alibaba Group, said: "Alibaba is thrilled to expand our existing partnership with Starbucks by leveraging our cutting-edge New Retail infrastructure and digital power to enable an unprecedented experience for consumers."

It's unsurprising that the two groups announced partnerships with coffee chains as we enter into the new academic year.

Coffee is a passion that is echoed across the globe and students in the UK are particularly addicted.

Coffee specialists, Bibium, have put together six reasons why they think students can't stop drinking coffee.

1. With 9 am lectures and non-stop deadlines, it keeps students just awake enough to make it through the day.

2. Forget having a gossip over a water-cooler, the coffee machine is the best place to socialise.

3. Students love to procrastinate, so taking time to make and drink a cup of coffee keeps them from writing their essays.

4. There's nothing worse than being stuck in a library with freezing cold air-con, coffee quickly warms them up.

5. Coffee keeps them productive, it's a little morning routine that gives a quick boost of caffeine.

6. It's a hangover cure-all - studies suggest coffee protects you from liver diseases caused by alcohol.

"Coffee has become a popular drink for young people nowadays and there are more coffee industry practitioners," said Maofeng.

http://chinaplus.cri.cn/news/business/12/20180908/181109.html

 

[hiseen]

Starbucks's biggest problem is It always opens at airports, large office buildings, and expensive places, The proliferation of this blocked coffee culture, Though have worked hard for 30 years, compared with the sales of Chinese tea, he is negligible.
At the same time, it can no longer lower the price, Due to online shopping development, Its mode is hard to adapt to China's rapidly refurbish environment.

 

[qwerrty]

Then they whine that they have been treated unfairly. They think fair competition is unfair. For them, only a privileged status is fair. Otherwise, their companies are slashed and minced in competition by their peers.

so true. lol. they rejected zero tariff deal for auto offered by europe. they blame european consumer habits for not buying 'murican cars, not because they are inferior to euro cars.

 

[qwerrty]

I laughed f**king hard when i read the supposedly 'beneficial' properties of coffee.

As a habitual coffee drinker myself, im desperately trying to cut down on it(along with cigarettes.

Coffee:

1)Dehydrates you. Its a diuretic, meaning it increases the rate water is being flushed out from your body.

2)is an anxiogenic. Hence the 'jittery' sense of being you get after a cup of coffee.

3)narrows blood vessels, therefore increasing hypertension.

4)coffee is often drank with sugar n sweeteners n the negative consequences to these are well known.

The dopamine increasing effects of coffee is what keeps me hooked on drinking it(similar to cigarettes)despite knowing its bad for my health

The only true positive effect it has is by artificially keep me awake with my pupils constricted.

it's good pre-workout drug for poor people like me before hitting the gym

 

[Adam WANG SHANGHAI MEGA]

i bet this company is probably praying for trade war

The name is good

 

[Jlaw]

I’m a big fan of tim hortons.

Are you serious? Their coffee is known to be terrible. Canadians buy Timmy's because most still believe it's a Canadian company

I laughed f**king hard when i read the supposedly 'beneficial' properties of coffee.

As a habitual coffee drinker myself, im desperately trying to cut down on it(along with cigarettes.

Coffee:

1)Dehydrates you. Its a diuretic, meaning it increases the rate water is being flushed out from your body.

2)is an anxiogenic. Hence the 'jittery' sense of being you get after a cup of coffee.

3)narrows blood vessels, therefore increasing hypertension.

4)coffee is often drank with sugar n sweeteners n the negative consequences to these are well known.

The dopamine increasing effects of coffee is what keeps me hooked on drinking it(similar to cigarettes)despite knowing its bad for my health

The only true positive effect it has is by artificially keep me awake with my pupils constricted.

Drink Dragon Well tea or any Chinese green tea. It's proven to have many health benefits

 

[liall]

Look like China is getting good at marketing. Good luck to the company. We honestly need competition to these American companies dominating the world.

 

[aman_rai0007]

Look like China is getting good at marketing. Good luck to the company. We honestly need competition to these American companies dominating the world.

Tata owns Starbucks in 50:50 ratio

 

[Skull and Bones]

Are you serious? Their coffee is known to be terrible. Canadians buy Timmy's because most still believe it's a Canadian company

It's cheaper, I did my Masters in New York, right at the border of Canada, so Tim Hortons was the life saver for all those late night studies. So a little sentimental value going for it.

Tata owns Starbucks in 50:50 ratio

That is only for Star Bucks India venture.

 

[TaiShang]

so true. lol. they rejected zero tariff deal for auto offered by europe. they blame european consumer habits for not buying 'murican cars, not because they are inferior to euro cars.

Same with Japan, I guess. In Japan, who in their sane mind would buy a US car over a Japan made car?

I guess only those that are half-wit or dimwit.

The US is not only asking for privileges, they are also asking governments to push US made stuff into their citizens' throats.

BAD!

I laughed f**king hard when i read the supposedly 'beneficial' properties of coffee.

I do not drink coffee. I am a green tea person. At times, I also like fruit drinks or bubble tea (although the later is said to be not that healthy and in Taiwan we had some scandals ).