by SONG Jianan

Lucky Cup, the budget coffee chain owned by Mixue Group, has crossed 10,000 stores worldwide, strengthening its position in China's crowded coffee market and narrowing the gap with Luckin Coffee and Cotti Coffee.

Luckin Coffee remains the market leader with nearly 30,000 outlets, while Cotti Coffee operates more than 15,000.

Founded in 2017 and wholly operated by Mixue Bingcheng Co., Lucky Cup spent years growing slowly before a strategic reset in 2020. Then-general manager ZHANG Hongfu pushed a shift toward ultra-low pricing, opened the brand to franchising, and revamped its image with Hua & Hua Consulting. The chain has since expanded rapidly, supported by Mixue's centralized supply chain.

Lucky Cup targets value-driven consumers with drinks typically priced at 6–8 yuan, a proposition that has resonated in lower-tier cities and among students. According to GeoHey, a China-based retail analytics platform, Lucky Cup added more than 2,800 stores between 2022 and 2023.

Growth quickened this year. Lucky Cup opened its first overseas store in Malaysia in August and now operates in over 300 Chinese cities, including more than 1,000 locations in tier-one markets and 100 in Beijing.

Recent additions highlight its momentum: according to industry tracker Yilantop.com, Lucky Cup added 1,100 stores in October alone, surpassing Luckin (905) and Cotti (597) as the month's fastest grower.

Starbucks, meanwhile, ended fiscal 2025 with 8,011 stores in China across more than 1,000 cities. Growth has slowed, but the U.S. company is rolling out smaller, "compact" formats to push deeper into lower-tier markets.

China's coffee chain market has become intensely competitive, fueled by steep discounting, aggressive franchising and shifting consumer expectations. Beyond the top three, brands such as KCoffee, Nowwa Coffee, and Manner Coffee continue to battle for market share. According to iiMedia Research, China's coffee market is expected to reach 470 billion yuan (about US$66 billion) in 2025, with a compound annual growth rate of 28.8% from 2020 to 2025.

Analysts say the next phase of competition will hinge on cost control and product differentiation as brands try to avoid homogenization in an increasingly price-driven market.