Luckin Coffee's co-founder and CEO Gu Jinyi revealed at the Xiamen Entrepreneur Day Conference that the company is actively promoting its plan to relist on the main board. This return is backed by its massive scale of nearly 30,000 stores and its momentum of performance growth. Total revenue reached 15.287 billion yuan, up over 50% year on year; Monthly average transaction customers exceeded 112 million, hitting a record high; Same-store sales of company-operated stores grew by 14.4%; Revenue from franchised stores reached nearly 3.8 billion yuan, with a year-on-year increase of as high as 62.3%. Since 2023, the company has accelerated expansion through the "franchise with existing store operations" model. By July 2024, the number of stores exceeded 20,000, and by the end of September 2025, the figure reached 29,214. In the past two years, one new store has been added every 1.1 hours on average, far outpacing Starbucks (over 8,000 stores). Theoretical growth space is limited: Huayuan Securities estimated that the upper limit of store openings is about 39,000, leaving a growth potential of nearly 10,000 stores, but the company actually faces a physical ceiling; Declining per-store profitability: The per-store sales of company-operated stores in Q3 2025 were flat or slightly lower than those in Q3 2023, while the per-store procurement material expenditure of franchised stores declined, reflecting a drop in average number of cups sold; Store replacement and densification issues: Significant replacement has occurred in franchised stores, with a large number of unprofitable old stores closed, and new stores are in their order volume ramp-up period; in July 2024, 47% of stores were dense overlapping stores, with the average shortest distance between stores being only 403 meters, lower than the initial target of "one store per 500 meters", leading to intensified competition. In Q3 2025, revenue increased by 50.2% year on year, but net profit fell by 2.7% year on year. The core reason was the surge in delivery expenses by 211.4% to 2.89 billion yuan, accounting for 18.9% of revenue (nearly 19 yuan in delivery fees for every 100 yuan of revenue). Dilemma between in-store pick-up and takeout: Gu Jinyi stated that the coffee industry has long been centered on in-store pick-up, but if the company reduces its dependence on takeout, it can save delivery expenses, but the order volume per store will decline, and fixed costs remain unchanged, so it is necessary to balance the impact of expense savings and order volume decline; Locked-in low-price brand perception: It is difficult to break through the "9.9 yuan" low-price image, and takeout subsidies further lower prices, while co-branding campaigns cannot easily change the brand value perception; Lack of blockbuster products and intensified competition: The company launches new products frequently but has failed to produce hits like "Thick Cream Latte" and "Raw Coconut Latte". Meanwhile, it faces a competitive environment where coffee and milk tea markets are blending, so pricing needs to refer to Mixue Ice Cream & Tea (6-8 yuan) and Heytea (around 15 yuan), rather than only benchmarking against Starbucks. Currently, the company has opened 118 stores in Southeast Asia, North America and other regions, which is vastly different from the scale of nearly 30,000 domestic stores; It has abandoned the domestic low-price strategy, positioned itself as a mid-range brand, with product pricing slightly lower than Starbucks, in an attempt to gain profit margins. High localization adaptation costs: There are significant differences in consumer tastes, regulations, supply chain infrastructure and other aspects across different countries/regions, so the domestic successful model cannot be replicated, and it is necessary to rebuild supply chains, cultivate consumer habits and build brand awareness; High profit threshold: Insufficient store density and business scale lead to high operating costs. In the first three quarters of 2024, the Singapore business was not yet profitable; Insufficient price advantage: In markets such as Singapore, although promotional strategies can attract new customers, the price advantage over Starbucks is limited, and it is necessary to prove that the business model is replicable, rather than only serving Chinese ethnic groups. Luckin Coffee is promoting its relisting plan on the main board driven by store expansion and performance growth. Although its Q3 financial report showed strong performance, its sustainable growth faces three core challenges: store expansion is approaching the ceiling, declining per-store profitability and intensified internal competition; profit pressure caused by over-reliance on takeout, and the difficulty in balancing the low-price perception and profit demands; overseas markets are still in their infancy, with localization and profit problems to be solved. For Luckin Coffee to successfully relist and achieve long-term development, it needs to optimize per-store profitability on the basis of its 30,000-store scale, restructure its profit model, and meanwhile explore effective ways to break through overseas markets, proving the health and sustainability of its business model. © 2021 Meishun (Hong Kong) Management Consulting Co., Ltd. and Meishun (Hangzhou) Management Consulting Co., Ltd. All rights reserved. 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