Luckin Coffee Is a Fraud? Why Nobody Is Surprised. (Daily Update – Jeff’s Asia Tech Class)

The big news yesterday was that Luckin Coffee has disclosed an internal investigation into fabricated sales for 2019. From CNBC: Luckin Coffee disclosed Thursday that an internal investigation has found that its chief operating officer fabricated 2019 sales by about 2.2 billion yuan ($310 million).Shares cratered more than 80% in premarket trading after the release […]

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While Luckin Fights Starbucks, HeyTea Has Lines Out the Door in China (pt 2 of 2)

In Part 1, I argued that Starbucks China most interesting competitor is not Luckin Coffee. It is HeyTea, an upscale Starbucks-type business focused on tea (something Chinese consumers really, really like). And to their credit, HeyTea appears to be mostly focusing not on digital (or financial engineering) but on product development and continually thrilling their […]

Forget Luckin. Starbucks’ Most Interesting China Competitor is HeyTea (pt 1 of 2)

So Luckin Coffee has gone public and there are big questions about their revenue growth vs. operating losses. They are building an F&B business fast and aggressively against still unclear demand. But HeyTea is the Starbucks challenger I am keeping an eye on. They have long been referred to as the “Starbucks of tea”. And […]