How about Ruixing Cafe? Luckin Coffee's latest number of stores in 2020

For consumers, Luckin Coffee is defined as "lucky coffee, the light of the NASDAQ mudslide American leek harvester". Lucky adheres to the concept of "good coffee is actually not expensive". What it conveys is that coffee is not a luxury, and the concept of good coffee that everyone can afford and drink has captured the psychology of consumers through crazy discounts and quality. Thus it has been favored by many consumers.

However, it is a pity that it has been falsified and financial fraud has been made.

For the whole year of 2020, Luckin Coffee was very tortuous.

In recent years, Luckin Coffee confessed that he had caused a big disaster-- financial fraud of 2.2 billion yuan.

In the middle of the year, the untrustworthy Lucky began to be "squeezed out" by the outside world, the stock price plummeted, orders soared, stores were "closed and merged", the board of directors "infighting", and senior managers changed their blood.

At the end of the year, Ruixing took the initiative to spend 180 million US dollars to reach a settlement with SEC.

According to statistics, before Ruixing revealed its financial fraud, its average daily sales were more than 900,000 cups. It is worth noting that after the fraud, Luckin Coffee's official account followers exceeded 20 million, while in terms of private domain traffic, Ruixing disclosed the approximate data: 1.8 million private domain users, contributing 35000 cups directly and 100000 cups indirectly. Private orders have also become the third largest source of orders after APP and Mini Program. In addition, except for non-business coffee shops, other Luckin Coffee stores that have resumed normal business have achieved positive cash flow, which makes people mistakenly think that Luckin Coffee has made a comeback, but when everyone saw that Luckin Coffee store made a profit, everyone thought Luckin Coffee was on the right track. Unexpectedly, there was a shocking infighting at the top of Lucky. As soon as Guo Jun, chairman of Ruixing, who has been in office for less than eight months, was asked to be removed, a number of executives signed a joint letter asking for the removal of the current chairman, which cast a lot of uncertainty over Luckin Coffee's future.

Throughout the Luckin Coffee fraud incident, the topic that people are more concerned about is whether Lucky can continue to go on, but so far, no one can accurately give the future trend of Luckin Coffee.

At present, Luckin Coffee continues to operate store business, new stores are still being opened in China, and new products are constantly being launched. WeChat groups continue to distribute discount coupons, raffles, live broadcasts, and so on, which also means that Luckin Coffee is developing towards "good". Lucky even announced that it hopes to have 4800 to 6900 self-operated stores by 2023, and its management expects that according to the current operational progress, it is expected to achieve overall profit this year.

Industry experts also put forward: "Luckin Coffee is, after all, a legal entity, and if all the responsible executives of the company are replaced in the future, and the company can produce sustained profit growth, or there are new conditions to meet the conditions for listing, we do not rule out its re-listing."

In addition, Luckin Coffee said in a statement in the US filing for bankruptcy protection: all the stores in China are still open and provide services to customers, which is not expected to have a significant impact. According to the current momentum, it seems that Luckin Coffee can continue to sell coffee in the future, but the actual situation depends on whether Luckin Coffee can continue to operate normally and produce sustainable profitability.

What happens next to Luckin Coffee is still a question mark.

* Image source: Internet

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