China's Luckin Coffee launches in Phl

The Philippine coffee market could soon welcome a major new contender as retail tycoon Ben Chan moves to bring Chinese coffee powerhouse Luckin Coffee to local shores.

Chan, founder of the clothing brand Bench, is reportedly working to secure the rights to launch the fast-growing café chain in the country. Industry sources said the move is part of a broader strategy to expand his group’s presence in food and beverage businesses inside shopping malls.

The planned entry could inject fresh competition into the country’s already crowded coffee scene. Premium leader Starbucks continues to dominate the high-end segment, while several foreign and regional chains are racing to expand.

Among the newer rivals is ZUS Coffee, a rapidly growing brand linked to restaurateur Frank Lao. Another strong challenger is expected soon as Tony Tan Caktiong prepares to introduce South Korea’s Compose Coffee to the Philippine market through Jollibee Foods Corp.

Founded in 2017, Luckin Coffee quickly surged to the top of China’s café sector. The company has already surpassed Starbucks to become the country’s largest coffee chain, helped by aggressive pricing and a technology-driven ordering system centered on its mobile app.

The brand initially built its network through small, cashier-less coffee kiosks designed for quick pickup orders. Popular drinks include coconut latte, velvet latte, and apple fizzy Americano. Luckin has since begun opening larger flagship stores in China as it expands its brand presence.

Outside mainland China, however, the company still maintains a relatively modest footprint, with about 60 outlets in Singapore, 24 in Malaysia, and a handful of locations in New York City.