Did Luckin Coffee achieve self-profit? Analysis of Luckin Coffee's profitability Luckin Coffee continues to close stores

It is reported that Ruixing Coffee will continue to close in 2021!!

Relevant reporters from Beijing City Haidian District, Chaoyang District and Fangshan District area learned: These places have found Ruixing coffee store closure situation.

Ruixing coffee used to be a miracle of capital, but unfortunately, it was fake, according to previous data statistics, Ruixing coffee in the most beautiful time, its store coverage represents the speed of "small blue cup": 21 months opened 2130 stores, can be said to expand speed is very crazy.

Ruixing Coffee was forced to delist after it was exposed to fraud. On May 17,2019, Ruixing Coffee went public in IPO, raising US $695 million and market value of US $4.2 billion; On June 27,2020, Ruixing Coffee released a "delisting" statement on its official micro blog, and Ruixing ended its Nasdaq journey in only 13 months (About the specific development of Ruixing Coffee: Portal: History of Ruixing Development| Ruixing Coffee Affiliate Company was administratively punished for this reason!) After that, it began to continuously "optimize stores." As of November 30,2020, the number of Ruixing coffee stores has been reduced from 4507 to 3898, and the number of Lu tea stores has also been greatly reduced. By 2021, the closure of stores will continue. According to insiders, Ruixing pays more attention to comprehensive indicators in the assessment of stores, and profit is also one of them. In other words, Whether Ruixing Coffee Store can operate normally depends on whether Ruixing Coffee Store can generate sustainable profitability.

In addition, although Ruixing coffee delisted, but also closed some stores, but Ruixing coffee told everyone, delisting return to delisting, new products, new users can still enjoy preferential treatment.

At present, Ruixing Coffee still continues to operate store business, new stores are still being opened in China, and new products are constantly launched. WeChat Group continues to issue discount coupons, raffle, live broadcast, etc. In February this year, Ruixing Coffee announced its formal application for bankruptcy protection on the company's official website. At the same time, Ruixing Coffee posted a blog saying: The Company and its stores operate steadily and normally, will continue to provide consumers with high-quality, cost-effective products and services, and will continue to fulfill its commercial obligations to pay fees to suppliers, developers and employees.

The most noteworthy point is: On February 17, Ruixing Coffee officially announced the CEO survey results, during which Guo Jinyi revealed the latest data on the operation of Ruixing Coffee stores in an internal letter: In 2020, the total number of Ruixing Coffee stores is nearly 4800, registered users are nearly 100 million, and the sales volume of ready-made drinks exceeds 300 million cups; Just after the Spring Festival Golden Week, more than 1900 store employees and operation teams nationwide stick to the front line. The number of ready-made drink cups is nearly 5 times that of the same period last year, and the income is nearly 7 times that of the same period last year. In terms of product innovation, Ruixing Coffee launched 77 brand-new ready-made drinks in 2020, including thick milk latte, light milk tea, etc.; In terms of store expansion, Ruixing opened more than 120 stores in January 2021, but did not disclose the direct sales or franchise proportion of these 120 stores, and the expansion speed and store quality were significantly improved.

Guo Jinyi, chairman of Ruixing Coffee, said: "The company now has stable operation and good income. For Ruixing Coffee 2021 planning, Guo Jinyi said in an internal letter that he would further focus on the" iron triangle "operation mode built around products, stores and users, accelerate the optimization of the overall organizational structure, and improve and implement incentive mechanisms such as employee welfare, salary and options." Ruixing Coffee also made it clear that it hopes to have 4800 to 6900 self-operated stores by 2023, and Ruixing management expects to achieve overall profitability by 2021 according to current operational progress.

* Image source: Internet