Luckin Coffee Silently Raises Coffee Prices Sparking Consumer Dissatisfaction! Little Deer Tea Returns to Luckin Coffee

The Return of Little Deer Tea: Luckin Coffee's Strategic Reintegration

Has it been a while since you've seen "Little Deer Tea"? "Little Deer Tea" was a tea beverage product line launched by Luckin Coffee on April 10, 2019. In July of the same year, Luckin Coffee separated "Little Deer Tea" to establish it as an independent new-style tea brand, introducing a franchise model. Subsequently, "Little Deer Tea" rapidly expanded to multiple cities, with Beijing's "Little Deer Tea" outlets being directly operated by Luckin Company.

Brand Challenges and Market Decline

Following Luckin's financial fraud scandal last year and the black swan pandemic's impact on the Luckin brand, industry analysts pointed out that it would be difficult to manage both "Little Deer Tea" and "Luckin Coffee" brands simultaneously, expressing pessimism about the future development trend of "Little Deer Tea."

By August this year, just as analysts had predicted, the "Little Deer Tea" directly-operated stores were recalled by Luckin Company. Multiple "Little Deer Tea" outlets in Beijing were converted to "Luckin Coffee" stores, while other franchise "Little Deer Tea" stores remained unchanged. Although not recalled by the company, the decline in Luckin's brand reputation led to significantly reduced business volume, causing many franchisees to struggle and subsequently close their stores. As a result, "Little Deer Tea" gradually faded from public awareness.

Strategic Reintegration and Market Reentry

Until recently, "Little Deer Tea," which had once been contracting its independent stores in Beijing, began returning to Luckin Coffee stores in another form. Netizens discovered that the signage of a Luckin Coffee store in a Beijing shopping mall had added the words "MIX Coffee × Tea." The store's menu not only featured coffee but also offered new-style tea beverages, marked with "Little Deer Tea" branding.

Strategic Value and Market Positioning

From a product series to an independent brand and back to a product series, does Luckin Company have new plans? Some analysts believe this is because "Little Deer Tea" holds significant value in the new-style tea market, possessing a relatively complete product line and brand recognition. Reintegrating the "Little Deer Tea" series back into the fold can make Luckin Coffee's product line more comprehensive. In the current coffee market characterized by "numerous competing brands," Luckin Coffee's approach enhances its core brand competitiveness.

Price Adjustments and Market Response

The reintegration of "Little Deer Tea" products has also brought other changes to this "pilot" store... namely, the delivery prices of coffee at this particular store are 2-3 yuan more expensive than other Luckin Coffee stores! In response, Luckin Coffee customer service staff stated that the company will recently adjust prices for more than 800 stores across 11 cities based on customer traffic and sales figures. All beverage delivery prices will increase by 3 yuan, while pickup prices will remain unchanged.

Differential Pricing Strategy

Regarding the current issue of "different prices for the same products," Luckin Coffee's responsible person also responded to this matter. The person in charge stated that with Luckin Coffee's rapid development, the company will further implement refined management for store operations. Due to varying operational costs between stores, the company will comprehensively consider factors such as rent, logistics, and operational expenses, implementing differential pricing based on the actual situation of each store.

Public Reaction and Transparency Concerns

Since Luckin Coffee did not publicly announce the "delivery price increases for some stores" matter, netizens from multiple regions on social platforms have criticized this approach as "devaluing the brand." People believe that if delivery prices were to increase, the company should have announced it in advance rather than silently raising prices without any communication...

Image source: Internet

For professional coffee knowledge exchange and more coffee bean information, please follow Coffee Workshop (WeChat public account: cafe_style)

For more specialty coffee beans, please add FrontStreet Coffee on private WeChat, ID: kaixinguoguo0925

Important Notice :

前街咖啡 FrontStreet Coffee has moved to new addredd:

FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou

Tel:020 38364473