How does a campus coffee store fit Luckin's franchise plan?
Luckin Coffee is expanding onto university campuses through a targeted location franchise model. As of August, the chain had opened more than 1,282 campus stores, launched over 100 designated franchise locations at schools, and completed site selection at more than 40 schools, with several outlets already operating.
The model lets investors submit site proposals inside areas Luckin releases, updated weekly; after review, they sign a lease and become franchisees. The 9.9 yuan price strategy, third-space design, and campus collaborations push student coffee consumption. The piece also reviews five traits that set a campus coffee store apart within the wider chain of coffee shops.
September marks the start of the school season, and the campus coffee market is welcoming a new round of competition. Luckin Coffee is accelerating its penetration into universities with a "targeted location franchise" model, having opened over 1,282 campus stores and launched more than a hundred designated locations. Its 9.9 yuan low-price strategy, third-space creation, and campus culture collaborations have made university students an important force in coffee consumption. Meanwhile, brands like Front Street Coffee are also paying attention to this trend. This article reviews Luckin's campus expansion path, the details of its franchise model, and five notable characteristics of campus coffee shops, analyzing the new campus battlefield amid the coffee industry's intense competition.
As the September school term begins, the coffee marketing buzz around "the first cup of the semester" on university campuses has surpassed that of "the first cup of milk tea in autumn."
Recently, Luckin Coffee announced that it has launched over 100 "targeted location" franchise spots at schools nationwide, and as of the end of August, stores at more than 40 schools have completed site selection.
It is understood that more than 10 Luckin campus stores, including those at Anhui Polytechnic University, Anqing Normal University Longshan Campus, and Fuyang Normal University West Lake Campus, have already opened for business.
Regarding the "targeted location" franchise model, Luckin officially explains that it is a cooperation method for specific opening scenarios, such as work, study, leisure, medical and transportation hubs, and scenic areas.
Investors can submit site selections within the designated areas released by Luckin, and after the brand's review is approved, they sign a lease contract for the premises and become franchisees.
Luckin states that the currently available "targeted location franchise" updates its locations weekly, and investors can inquire through the targeted location recruitment method.
For this franchise model, Luckin's official WeChat account also specifically lists high-quality school locations, with details providing the map location, type, and specific address of the relevant schools.
Luckin's move is interpreted by outsiders as intensively ramping up its efforts in the campus market. According to public information, as of August, the number of Luckin campus stores has reached 1,282.
"Finally, no need to envy Peking University for having Luckin," a Tsinghua student posted online. Additionally, students at Jimei University were surprised that their school alone had five Luckin Coffee stores.
During the September school season, many students and teachers discovered that after a summer break, the original milk tea shops on campus had closed, replaced by Luckin Coffee, and the 9.9 yuan per cup coffee promotion has left no room for other coffee shops to survive nearby.
University students in their early twenties are at an age full of energy, but many times student groups need coffee to stay alert more than working professionals in society. For contemporary university students, coffee is practically a lifesaver for grades, especially around exam periods and paper submission deadlines.
Some students say that during the final month before the postgraduate entrance exam, they drank three cups of coffee a day, and in that month alone made it onto the top ten list of their school's Luckin store mini-program orders.
Other students say their school is very small, and the only coffee shop is Luckin, which can make 800 cups by evening, and because the store is on the only path from the dormitory to the classroom, it truly has the advantage of timing, location, and people.
It is understood that currently, campus coffee shops exhibit the following five notable characteristics:
First, coffee brands place more emphasis on cost-effectiveness and pursue value for money. University students are not yet financially independent, and 9.9 yuan low-price coffee is deeply popular among students;
Second, low-bitterness coffee, creative coffee, and high-appeal products drive more sales, and various merchandise collaborations instantly make university students place orders;
Third, compared with many off-campus chain coffee shops, campus coffee shops play more of a "third space" role, so coffee shops with study rooms, reading corners, and other public areas are more popular among students;
Fourth, campus coffee shops closely integrate marketing strategies with school characteristics, triggering emotional resonance among students through campus culture, creative merchandise, and other means to boost consumption;
Finally, compared with mall stores, campus coffee shops have certain advantages in rent and labor costs.
According to statistics from the Ministry of Education, in 2023, China had over 3,000 higher education institutions, with a total enrollment of over 40 million students in higher education. University campuses are gathering places for young customers, and competing for the campus market is an inevitable trend amid the coffee market's intense competition.
Image source: Luckin official WeChat, internet
The above content is compiled by CoffeeHunters, a coffee news website.
