Jeffrey Towson - Luckin Doesnt Need to Beat Starbucks To Win Big in China

My thoughts on retail coffee in China. Starbucks vs. Luckin Coffee. Plus stuff from around Beijing and Shanghai.
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[@michaelochieng8887]

Hi, Jeffrey. Could you do a follow up to this video considering the current state of Luckin Coffee with the Founder and Chairman exiting and the SEC considering delisting it from NASDAQ

[@cubanpp]

Luckin didn’t had to lie about their numbers, they got greedy, they have what it takes to bring the competition to Starbucks, they need to go international but before they do that they need to gain the trust back and report the truth with transparency. How do you see this company going fordward?

[@caliplanes]

Good point, starbucks is doing that in the US. With mobile order and with more stores, I think Starbucks US is trying to get ahead of any competition like luckin or similar in the USA

[@joethesimple685]

I really wouldn't care which one has better quality and taste, as long as the coffee tastes great, I am all good. We wish we could also have Luckin Coffee in the Philippines.

[@lanceoa]

Thx for the shots of the Shanghai Rail... it makes it easier to understand the impact of the population and its breadth and depth

[@jeromecha1]

Good Morning! Jeffrey, Nice video and great info. Especially enjoyed all the shots of the cities and people going about their everyday lives. The store you were in looked basically like any Starbucks store here in the US. Would’ve loved to have seen one of their pickup only locations and how a mobile phone order/transaction is done from start to finish. Thank you for what you do. Your life looks exciting & awesome:) Good luck!!

[@lanceoa]

Half pickup spots and half sit down... great mix! And if there is a demand for seating there is still space for some stand up cocktail tables, window bar shelves, and some two person tables.... hopefully there is adequate interest to adapt to the Chinese consumers

[@michaelj.weinstein4016]

As of June 2020, I heard it is not half pick up, half sit down. I also heard it was 91% pickup and 9% sit down. Recently, I heard they had 7000 stores but eliminated many, leaving it at 6000. And Lucky Lee on his blog says they are gravitating away from pickup and delivery. Investor Relations has never answered 3 emails. Does anyone know how many locations and what is the mix?

[@rui-9-cs315]

still has 500 shares of LK..

[@JacquesTreehorn]

NASDAQ halted trading last week. It is at $4.39 now, still halted. It seems like Luckin cooked the books a bit to make it seem like they were selling more than they actually are. The party would do themselves a favor by letting Visa or MasterCard in to do business. Makes it harder for splinter groups to cook the books the way Luckin did. I do believe in your thesis, Luckin could do extremely well. Far from over, perhaps a good buy at the price it is at currently. I appreciate your work! NIO is also interesting. Cover NIO if you have a chance.

[@jeffreytowson155]

Thanks. I thought Luckin had a fairly reasonable approach in year 1. Big build and fast and try and get Chinese to drink more coffee. Big potential upside. So win big or fail fast. A reasonable approach for vc-backed company. But the year 2 story seems to be fail vs. fraud. Should ahve just closed up when the coffee consumption increase didn't really happen.

[@JacquesTreehorn]

I noticed it trading again and bought some at the end of the day when the graph started to dampen. I put my stimulus check on it. I plan to forget about it now and hope it works out for them.

[@MbunaMarcus]

Great video

[@iSee109]

What say you today? LK stock looks like a winner.

[@jeffreytowson155]

Hey. Looks like the big coffee consumption increase in China isn't happening. So building fast and aggressively doesn't work. Oh well.

[@riyazpatan111]

you still did not answer question!

[@jeffreytowson155]

?

[@johnnywalker2220]

Stock at all time high

[@luckylee3204]

Stock now half ATH. Do you think coronavirus will have a significant impact on the long term prospects of China's economy and firms expanding in China? I have made a brief video and would love to hear your thoughts. kzbin.info/www/bejne/bYfMp42Kl5infdU

[@blahblah-oe9cw]

this was a long video with no information. also, you should buzz your hair. it looks ridiculous leaving it longer on top

[@luckylee3204]

I've got a long video too, but it is jam-packed with up-to-date information. If that is what you are still looking for, please check it out: kzbin.info/www/bejne/bYfMp42Kl5infdU