Mixue Sips Success at the Bottom of China’s Premium Tea Market

The fast-growing chain whose bubble and milk teas typically sell for less than $1.50 has filed for a Shenzhen IPO that could value it at nearly $10 billion Key Takeaways: Low-end premium tea chain Mixue has applied for a Shenzhen IPO to raise 6.5 billion yuan for new product development and expansion The company uses a franchise model that helps it control costs, giving it a higher margins than its rivals By Trevor Mo Frugality is the new cool these days for Chinese consumers who are tightening their belts as…

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Luckin Brews Up Hot Results on Rapid Expansion, Diversified Footprint

China’s leading coffee chain’s revenue rose 72% in the second quarter, even as most of its peers reported declines due to Covid-related disruptions Key Takeaways: Luckin Coffee reported strong revenue and profit growth in the second quarter, banking on a rapid expansion and winding down of expenses related to an earlier accounting scandal Company has adopted a hybrid model of using self-operated stores in major cities, while working with partners to open stores in smaller markets By Doug Young Chinese restaurants and coffee shops got hammered in the second quarter,…

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Tim Hortons China Brews Up Explosive Growth Plan Using Tech and Localization

The soon-to-be U.S.-listed coffee chain is aiming for 2,750 Chinese stores by 2026, equal to nearly half of Starbuck’s current count Key Takeaways: Tim Hortons China is aiming to open nearly 3,000 stores in China over five years, banking on technology and localization to fuel its rapid expansion Company needs to be careful to avoid mistakes of chains like Costa and Krispy Kreme, which closed or sputtered after initially announcing similar major expansion plans By Doug Young Fasten your seat belts! Tim Hortons China, known locally as Tims China, is…

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Luckin Coffee Nears Major Milestone with Imminent Emergence from Bankruptcy

China’s scandal-tainted Starbucks challenger says liquidators handling its U.S. bankruptcy have filed a motion to formally close the case Key Takeaways: Luckin Coffee said the liquidators handling its U.S. bankruptcy have formally filed to close the case after a recent settlement with holders of $460 million of its convertible notes Development could pave the way for company to relist on the Nasdaq, though the U.S. securities regulator could face pressure to veto such a move By Doug Young   This is one liquid that China’s largest coffee purveyor won’t miss. That’s…

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Mild Manner Coffee Takes on Starbucks in China With ‘Street Coffee’

Newer chains like the ByteDance-backed startup are using small-store format to change the big game in China’s vibrant coffee market Key takeaways: Manner Coffee is at the forefront of a new generation of boutique Chinese coffee chains that are attracting major investment dollars Newcomers are challenging Starbucks with small-store format that slashes rent, labor costs By Jose Qian China’s booming coffee business has made it the second most important market for global giant Starbucks (SBUX.US), behind only its home U.S. market. But it’s also providing fertile ground for new and…

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Scandal-Ridden Luckin in Nascent Coffee Comeback. But Will Investors Take a Sip?

With strong first-half revenues and shares within striking distance of its $17 IPO price, Starbucks challenger could be positioning itself for a big-board relisting Key takeaways: Luckin Coffee’s latest post-scandal financial report shows revenue more than doubled in the first half of the year, as losses narrowed Reformed company’s shares have rebounded to just below their IPO price, as it moves to business model with new focus on franchising By Mia Shanley For better or worse, investors tend to have short memories. That’s especially the case with Luckin Coffee Inc.…

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