Luckin Coffee Inc. (LKNCY) is embroiled in controversy over alleged employee exploitation, with numerous self-identified staff members taking to social media to expose systemic underreporting of working hours.
Employees claim they work 12-hour shifts but are only compensated for 9 hours, effectively laboring unpaid for 3 hours daily. Former staff further allege manipulative scheduling practices: shifts labeled as "rest periods" require employees to remain on-site, assisting with orders and packaging without pay—a tactic described as "wordplay exploitation."
Online critics urge Luckin’s leadership to address labor concerns: "Listen to your employees. Sustainable success requires fair treatment." When contacted for comment, Luckin’s customer service sidestepped the issue, stating only, "We apologize but have not received any related notifications."
Beyond wage disputes, employees report intense pressure to meet "peak efficiency" targets, including drink preparation within seconds during rush hours, leaving no time for breaks. Some shared photos of hand injuries attributed to frequent sanitization and chemical exposure.
**Financial Performance Amid Delivery Wars** On November 17, Luckin reported Q3 2025 revenue of RMB 15.287 billion (+50.2% YoY), though net profit fell 1.9% to RMB 1.28 billion. While delivery-driven sales boosted revenue, profitability suffered, with delivery costs surging 211.4% YoY to RMB 2.889 billion (19% of revenue). CEO Guo Jinyi acknowledged delivery as a "temporary supplement," emphasizing Luckin’s focus on pickup-dominated operations.
**Return to U.S. Markets?** CEO Guo announced plans to relist on a U.S. mainboard during the Xiamen Entrepreneurs’ Day, framing it as a step toward global expansion. However, the company clarified no timeline exists, prioritizing operational growth. This follows Luckin’s 2020 delisting after a $300M sales fraud scandal. Despite past turmoil, Luckin has rebounded, with Q2 2025 net profit up 44% YoY and 26,206 global stores—outpacing Starbucks China’s footprint.
Analysts caution that relisting demands rigorous audits and trust-building, given its history. Industry expert Zhu Danpeng noted Luckin’s "brand scale, supply chain maturity, and China’s coffee market potential" could facilitate a eventual return.
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