Luckin Coffee set to open five new outlets in Malaysia by end of January

Luckin Coffee is set to open five outlets across Malaysia by the end of January this year. In a statement, the brand stated the first two outlets will open at Sunway Pyramid and Menara EcoWorld on 23 January, while the additional three outlets will open by the end of the month. 

Luckin Coffee added the soft opening of the outlets will allow the brand to gather customer feedback and adjust its services. 

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Additionally, the Luckin Coffee app will be introduced on 23 January, offering seamless pre-ordering and cashless payments. The app also features a user-friendly interface for browsing the menu and customising drinks. 

In conversations with MARKETING-INTERACTIVE, a spokesperson for Luckin Coffee said, "We want to revolutionise Malaysia’s coffee landscape and culture by delivering a world-class experience infused with cutting-edge technology and innovation. We believe that with Luckin coffee tech driven business model, we are able to bring a different experience to Malaysian". 

News of Luckin Coffee's arrival into Malaysia has been long in the making. In June 2024, it revealed that it will be working with a Bursa Malaysia-listed firm as its local partner as it looks to an "ambitious" expansion plan in the next five year.

Hextar Industries was later revealed to be the Bursa Malaysia-listed firm in November 2024.

Hextar Industries, through its subsidary Global Aroma (GASB) entered into a strategic partnership with Luckin Coffee Singapore to bring the brand to Malaysia. The collaboration granted GASB exclusive rights to develop, open, and operate coffee shops under the brand nationwide.

"We are thrilled to begin our journey in Malaysia with this soft opening, offering customers a first look at Luckin Coffee’s unique coffee culture. This is an opportunity to engage with our customers and perfect our operations to meet local tastes and preferences," said Jeff Lim Chee Lip, chief executive officer of Global Aroma Sdn Bhd. 

Last week, Malaysian coffee chain Oriental Kopi was reportedly said to raise RM183.96 million through an initial public offering (IPO) on the Bursa Malaysia Ace market this month. 

According to The Edge Malaysia, Oriental Kopi has reportedly designated RM75.78 million of the IPO funds for working capital and RM53.68 million to establish a new head office, central kitchen and warehouse.  RM36.4 million will also be used for the expansion of cafes within Malaysia. The remaining proceeds have been allocated for marketing activities in foreign countries, expansion of its various packaged food segments, and to cover the cost of listing expenses. 

According to The Star, analysts reportedly have positive sentiments about the coffee chains plans of expansion, with reports anticipating higher earnings, net profit and net gearing for the company from the financial year 2025 onwards.

The coffee industry in Malaysia has seen a fair bit of competition in recent years. In September last year, ZUS Coffee, Malaysia’s biggest coffee chain operator, raised RM250 million from investors including buyout firm KV Asia Capital as it looked to grow regionally. The investment “signals a new chapter and springboard for ZUS Coffee’s growth”, company had then said.

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