Lucky Cup (幸运杯), Mixue’s ultra-low budget coffee chain, has surpassed the 10,000-store mark. It’s a milestone for the company and a bookmark in the story of China’s increasingly competitive coffee market.
The brand, wholly operated by Mixue Bingcheng (蜜雪冰城), now sits firmly behind only Luckin Coffee (瑞幸咖啡) and Cotti Coffee (库迪咖啡) in store count. Luckin remains the clear leader with close to 30,000 outlets globally, while Cotti operates more than 15,000. What’s changed is not the hierarchy, but the pace. Lucky Cup is now expanding faster than both.
Founded in 2017, Lucky Cup spent its early years growing quietly. The turning point came in 2020, when then-general manager Zhang Hongfu led a strategic reset. The chain shifted to ultra-low pricing, embraced franchising, and refreshed its brand image. Crucially, it was folded more tightly into Mixue’s centralised supply chain, giving it perks on cost that many rivals lack.
The formula has proven effective. Drinks typically sell for RMB 6-8 (under US $1.10) – a price point that has resonated with value-conscious consumers, particularly students and lower-tier city shoppers. Lucky Cup added more than 2,800 new stores (net) between 2022 and 2023, with growth hitting faster speeds this year.
October underscored that momentum: Lucky Cup opened around 1,100 stores in the month, outpacing both Luckin (905) and Cotti (597). The chain now operates in over 300 Chinese cities, including more than 1,000 locations in tier-one markets and around 100 in Beijing. It also opened its first overseas store in Malaysia in August, signalling early ambitions beyond China.
The wider competitive context is more unforgiving. China’s coffee market is in the midst of a polarising price war. On one end are brands like Lucky Cup, Luckin and Cotti, that can afford to slash prices to find consumers. At the other end are more boutique, experience-driven – and often independent – businesses. Slashed prices work but will only keep working so long. Growth in the market is slowing. Market reports point to the fact that the days of explosive booms are over. Though try telling that to the people in charge at Lucky Cup.
