Luckin Coffee operates a large partnership-store business alongside its company-operated network. Investors should separate two opportunities: the published China retail-partner programme and individually negotiated overseas market arrangements. The distinction determines the application route, capital requirement and rights being acquired.
Updated 7 October 2026. This restored archive article includes subsequently updated figures.
Luckin Coffee’s partnership network in numbers
Luckin’s results published on 3 August 2026 reported the following position at 30 June 2026:
| Measure | Reported figure |
|---|---|
| Total stores | 36,310 |
| Self-operated stores | 23,734 |
| Partnership stores | 12,576 |
| Second-quarter group net revenue | RMB15.886 billion |
Partnership-store revenue to Luckin includes supplies, equipment, delivery services and contractual fees. It is not the profit earned by individual partners. The same release reported a 5.3% decline in self-operated same-store sales, reinforcing the need to test local trading assumptions rather than extrapolate from network growth.
What does a Luckin Coffee franchise cost?
Luckin’s official Chinese partnership FAQ provides concrete terms for its domestic programme:
| Published China programme item | Official FAQ position |
|---|---|
| Joining/franchise fee | No joining fee under the described model |
| Security deposit | RMB50,000 per store |
| Initial agreement term | Generally 3 or 5 years, with reference to the lease term |
| Commercial sharing | A share of gross profit above an agreed threshold |
The deposit is not the full investment. Premises, equipment, fit-out, stock, staffing and working capital still require funding. The published description is specific to the China programme; it is not a worldwide franchise price or a promise of identical overseas terms. Applications to that programme use Luckin’s official app or mini-programme route.
International expansion requires a separate commercial structure
Luckin’s 2025 annual report describes an exclusive franchise arrangement with a Hextar subsidiary in Malaysia. This is evidence that an overseas franchise structure exists. It does not make Malaysia, or another country, available to an additional master franchisee.
For an international investor, the proposal must identify the territory, the contracting entity, brand and technology rights, product supply, development obligations and the responsibility for localisation. Domestic store-partner conditions cannot be substituted for those negotiations.
Build the unit economics around the order
Our commercial assessment starts with net revenue per order and contribution per drink. The model must account for promotional discounts, ingredients, packaging, delivery charges, payment fees and labour before calculating the store’s operating contribution.
Digital demand is valuable only when the economics of acquisition and fulfilment work. An investor should model customer repeat rates, collection versus delivery orders, peak-hour throughput and the cost of local promotions. A high order count with heavy discounts can consume cash instead of generating it.
A second model should show the fixed costs: occupancy, utilities, management, maintenance and any contractual payments. Break-even volume must be achievable with the proposed machine capacity, team size and local trading hours. For an international rollout, add product imports, foreign-exchange exposure and central support costs.
What makes an investor ready for a Luckin proposal?
- A defined territory and evidence of the local coffee-demand opportunity.
- Funding for the first operating cluster, with a separate working-capital provision.
- A management team capable of high-volume food and beverage operations.
- A site pipeline supported by catchment, rent and competitor analysis.
- A credible plan for digital payments, fulfilment, food safety and supply continuity.
These are Star Brands’ preparation priorities, not a replacement for Luckin’s formal eligibility criteria. The objective is a proposal that can withstand financial and operating scrutiny.
Prepare your Luckin Coffee investment case
Star Brands Consulting Group supports market selection, investor qualification, financial modelling and partnership preparation. We help distinguish a viable single-store domestic application from a territory-development proposal and prepare the evidence each route requires.
Submit your target country, available capital, operating background and proposed locations. We will assess the commercial route and develop the investor brief. Rights, appointments and final commercial terms remain decisions for Luckin and the relevant authorised counterparties.
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