Lucky Cup Coffee, a brand under Mixue Group, has surpassed 10,000 stores globally as of November 24, 2025. The chain doubled its store count from around 4,500 at the beginning of the year in just over 10 months.
Priced at 6–8 yuan per cup, Lucky Cup Coffee is even cheaper than competitor Cotti Coffee, which currently offers drinks at 9.9 yuan. In comparison, Luckin Coffee Inc. operates 29,214 stores as of Q3, while Cotti has expanded to 18,000 locations.
Lucky Cup Coffee has expanded to over 300 cities across China, including first-tier, lower-tier, and rural markets. Its presence in first-tier cities now exceeds 1,000 stores, with Beijing alone hosting 100 outlets.
The rapid growth was partly driven by food delivery subsidies, with new store sign-ups surging 164% year-on-year in Q2. Since July, franchise inquiries have increased by over 300% month-on-month, particularly from first-tier cities. The company attributes its sales boom to proactive marketing strategies.
However, the food delivery subsidy wave is receding. An executive from another expanding coffee brand noted that subsidies significantly decreased after July. Luckin Coffee Inc.'s CEO Guo Jinyi also acknowledged that reduced subsidies may cause short-term fluctuations in same-store sales growth in Q4 and beyond.
This could impact Lucky Cup Coffee's future expansion. As subsidies fade, the coffee price war may stabilize, with products settling in fixed price ranges. While Cotti previously triggered a 9.9-yuan price war, ultra-low prices like 2.9 yuan are unlikely to return.
The question remains whether Lucky Cup Coffee will push the market toward the 6–8 yuan range. Given coffee's high-frequency consumption nature, lower prices could stimulate demand. If competitors like Luckin and Cotti don't match these prices, rivals may quickly capture market share.
With Lucky Cup Coffee reaching 10,000 stores, it is increasingly becoming a strategic competitor to major players like Luckin, suggesting the price war will persist even after subsidy reductions.
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