Why Is Luckin Coffee Priced Higher in Hong Kong?
Luckin Coffee opened five stores in Hong Kong at the same time, located at Mira Place, Metro City MCP, Mong Kok New City, Sha Tin Centre, and Des Voeux Road Central in Sheung Wan. Drinks run from HK$39 to HK$45, and the signature Coconut Latte costs HK$42, well above the 29 yuan Shenzhen price even after member discounts.
Hong Kong rent and labor cost more than on the mainland, and mainland food and beverage brands entering the city generally raise prices. An opening offer brings the Coconut Latte to HK$15.9 for members. Whether Luckin Coffee can keep its coupon-based budget positioning in Hong Kong, next to Starbucks and Pacific Coffee, is still unclear.
Luckin Coffee has officially entered the Hong Kong market, with five stores opening simultaneously, located at Mira Place, Metro City MCP, Mong Kok New City, Sha Tin Centre, and Des Voeux Road Central in Sheung Wan. During the opening period, region-exclusive packaging materials and limited-edition sticker and badge activities are being launched. However, its Hong Kong pricing has sparked widespread discussion — the signature Coconut Latte is priced at HK$42, and while members can enjoy an opening offer of HK$15.9, this is still considerably higher than the mainland price of 29 yuan at Futian, Shenzhen, or 18 yuan after discount. Compared with brands like Starbucks and Pacific Coffee, Luckin's price advantage is not obvious, and some consumers bluntly say they would rather buy in Shenzhen. Industry analysis points out that Hong Kong's rent and labor costs are higher than the mainland's, and mainland catering brands entering Hong Kong generally raise prices. Whether Luckin can continue its mainland coupon-based marketing model and maintain its budget positioning remains to be seen.
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Previously, reports said Luckin was actively preparing to enter the Hong Kong market and had successively opened seven stores, attracting attention and anticipation from many fans.
Today, Luckin officially announced through multiple public channels that five Hong Kong stores are opening simultaneously, including Mira Place, Metro City MCP, Mong Kok New City, Sha Tin Centre, and Des Voeux Road Central in Sheung Wan. During the opening period, each store will launch region-exclusive packaging materials, and customers who participate in designated in-store activities can also receive limited-edition stickers and badges.
After the announcement, many local residents went to check out Luckin's new stores. It is understood that the five new stores are well equipped, with some offering tables and chairs for dine-in customers, while the most closely watched menu is placed prominently at the bar.
According to photos taken by netizens, Luckin's drink prices in Hong Kong range from HK$39 to HK$45, noticeably higher than on the mainland. Taking the signature "Coconut Latte" as an example, it sells for 29 yuan in Futian, Shenzhen, and ordering through the WeChat mini program offers an 11 yuan discount, bringing the actual payment to 18 yuan. In Hong Kong, however, the drink is priced at HK$42, with mini-program members able to enjoy an opening offer price of HK$15.9.
Faced with this pricing, many consumers were surprised, lamenting that the 9.9 yuan breeze ultimately failed to reach Hong Kong. Several local customers pointed out that Luckin's drink prices are even higher than those of similar brands such as Starbucks and Pacific Coffee.
Comparing the menus, most Starbucks and Pacific Coffee products are originally priced between HK$35 and HK$50, but regulars say these two chains frequently run promotions, so the actual amount paid is often lower than the listed price. From this perspective, Luckin's price advantage over these two "veteran players" is not particularly prominent.
After seeing Luckin's pricing, many local residents admitted that without discounts, they would not choose Luckin, whose value for money is average, and would instead consider other more suitable brands. Comments included "So expensive — Cotti is around 29 in Hong Kong," "Why drink Starbucks at this price?", "At this price there are plenty of choices," and "I'd rather buy in Shenzhen."
In fact, Hong Kong's venue rents and labor costs are higher than on the mainland, and in recent years mainland catering brands entering the Hong Kong market have generally raised overall product prices. Therefore, it was partly expected that Luckin, known for 9.9 yuan coffee, would not be able to maintain its original prices in Hong Kong.
In addition, many netizens pointed out that Luckin's menu prices on the mainland are actually not much different from its Hong Kong menu, but the brand has long issued drink coupons to mini-program members, and consumers can also obtain discount coupons on platforms such as livestreams, so the vast majority of Luckin users do not order at the original price.
Most people speculate that Luckin will likely continue its mainland marketing strategy and distribute coupons through mini programs or other channels to attract local consumers. In that case, the listed prices on Hong Kong store menus have limited reference value.
However, in Hong Kong's highly competitive market, whether Luckin can maintain its budget coffee positioning through multiple channels, as local fans hope, remains to be seen.
Image source: Internet
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The above content is compiled by CoffeeHunters, a coffee news website.
