China’s largest coffee chain, Luckin Coffee, has entered the Malaysian market through a strategic franchise partnership with Hextar Industries Berhad, signaling a major move in its global expansion strategy.
A Soft Launch with Big Ambitions
Luckin Coffee, now the largest coffee chain in China with over 20,000 stores, has kicked off operations in Malaysia with a soft opening of two stores at Sunway Pyramid and Menara EcoWorld in Kuala Lumpur. These stores, operated by Global Aroma Sdn Bhd, a subsidiary of Hextar Industries Berhad, represent the brand’s initial test phase in Malaysia.
Three more stores are scheduled to open by January 2025, completing a five-store pilot that will allow Luckin Coffee and its franchise partner to refine operational processes, engage local consumers, and tailor offerings to Malaysian preferences.
“We are thrilled to begin our journey in Malaysia with this soft opening, offering customers a first look at Luckin Coffee’s unique coffee culture,” said Jeff Lim Chee Lip, CEO of Global Aroma Sdn Bhd. “This is an opportunity to perfect our operations to meet local tastes and preferences.”
200 Stores Planned Over the Next Three Years
Following the pilot phase, Luckin Coffee and Hextar plan an aggressive rollout of 200 stores over the next three years, making Malaysia the second international market for the brand after Singapore, where it has already opened 51 outlets since March 2023.
Tech-Driven Value Strategy
Staying true to its app-based, small-format business model, Luckin Coffee is offering beverages at launch prices as low as RM2.99 ($0.67) when ordered via the app—an approach that helped drive its massive success in China.
The Malaysian operations are expected to follow this value-driven and digital-first blueprint, combining affordability, convenience, and speed to build customer loyalty.
A Competitive Coffee Landscape
Luckin Coffee enters a fast-evolving Malaysian coffee market, going head-to-head with:
- ZUS Coffee
- Gigi Coffee
- Bask Bear
- Kopi Kenangan (Indonesia) – 89 stores since 2022
- Cotti Coffee (China) – 10 stores in Malaysia
- Ediya Coffee (South Korea) – 200-store goal by 2029
Each of these brands targets the affordable specialty coffee segment with small-format stores, rapid service, and digital ordering—similar to Luckin’s model.
Why Malaysia?
Malaysia offers a young, tech-savvy population, a rising middle class, and a growing café culture, making it fertile ground for the next phase of Luckin Coffee’s international growth.
Franchise Opportunity: What It Means for Investors
Although Luckin Coffee is currently operating through a single franchise partner (Hextar Industries) in Malaysia, the brand’s rapid international scaling suggests future franchise or master franchise opportunities in other Southeast Asian markets may follow.
For retail investors and entrepreneurs, the Malaysian rollout will be a case study to watch in how tech-led QSR brands succeed in price-sensitive, competitive environments.