Robert Way
Luckin Coffee is preparing to enter Malaysia in partnership with a local franchisee, according to media reports in Asia. The coffee chain operator has a goal to grow rapidly over the next five years as part of its broad global strategy.
Luckin Coffee (OTCPK:LKNCY) has been looking at expanding outside of China since outpacing Starbucks (SBUX) in terms of the total number of stores. Last year, the company began exploring international markets, targeting Southeast Asia, including Indonesia, Singapore, and Thailand. This marked its second attempt at global expansion, following an earlier, unsuccessful venture into the Middle East and India. Notably, the entry by Luckin Coffee (OTCPK:LKNCY) into Malaysia arrives with some consumer boycotts against Starbucks (SBUX) over Middle East tensions still popping up.
Coffee competition in Malaysia is picking up in general with local chains ZUS Coffee, Gigi Coffee, and Bask Bear Coffee all competing with new entrants UK-based EL&N, Thai tea and coffee chain ChaTraMue, U.S.-based specialty coffee roaster Reborn Coffee, boutique chain Café Kitsuné, and fast-growing Cotti Coffee.