Wolf Bargain(Luckin, lucky!)
Luckin Coffee has finally landed in Singapore, 5 years after their first store in Beijing and Shanghai. The Chinese challenger to Starbucks had a chequered history. Luckin Coffee Inc was caught in an accounting scandal a few years ago. Muddy Water Research had flagged accounting irregularities at the firm in Jan 2020. A full investigation was conducted by the SEC which discovered the company had inflated revenue by $300m. The case was eventually settled with the company paying a $180m fine to the Securities Exchange Commission. Trading of the company shares had since suspended.
Before the fraud was discovered, I was contemplating buying their shares listed on NYSE as I felt the disruptor of coffee retailing had a sound business model which was different from the incumbent. Thank god I didn’t proceed. Fast forward from those trouble days, Luckin Coffee is currently the fastest growing coffee chain in China. They had recently overtaken Starbucks in term of store counts. Call it Luckin(lucky), the accounting fraud didn’t bring the company to its knees. After a management shakeup, it has brought in much stability and growth to the company. They have expanded into new market and within the space of 2 months, they had opened 4 new outlets in Singapore.
The concept of the coffee chain is to provide good coffee at affordable price with less waiting time. All these are done through the ordering process where customers can preorder a drink and make payment using Luckin Coffee App(only app payment, no cash). The cheaper price was obtained by this process that cut down the need for more staffs to handle payment. The use of fully automated coffee machine improves efficiency further, lowering down the unit price of their beverages. I have a chance to try out their app, it is really easy to use. I got my drink in approximately 2 mins after I placed my orders. I am mightily impressed with the speed of service given lunch time is always a precious commodity among office executives. The brightly lit store gives out a modern chic vibe.
Coffee and Tea based beverages dominate their menu. Vincent, the store manager was on hand with his recommendation. I ordered an Iced Pomelo Americano from his recommendation. It is probably the strangest coffee drink I have ever ordered. The mix of citrusy Pomelo soda with the strong Americano strangely works well. The drink does two things for me, quench my thirst on a super hot day and at the same time giving me my caffeine shot. Other best sellers include Coconut Latte and Velvet Latte. I did try out their Coconut Latte a few days later, they are divine. I also like the packaging. The cup has a premium feel.
They are currently having a special promotion for first time customers, you can order any drink at just 99c by using the app. Given the price of coffee beans reaching 12 years high, this is one luckin(lucky) deal too good to pass. Special thank to Manager Vincent for his kind introduction to Luckin Coffee.
*Review is voluntary and unscheduled
Address : Luckin Coffee
Aperai Mall, 12 Kallang Ave 01-34 Singapore 339511
Operating Hours : 7.30am-5.30pm
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