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

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

When did you last see "Little Deer Tea"? The line was launched by Luckin Coffee on April 10, 2019. In July of the same year, Luckin spun "Little Deer Tea" off as an independent new-style tea brand and introduced a franchise model. The brand expanded rapidly to multiple cities, with Beijing's "Little Deer Tea" outlets directly operated by Luckin itself.

Brand Challenges and Market Decline

After Luckin's financial fraud scandal last year and the pandemic's black-swan blow to the brand, industry analysts warned that juggling both "Little Deer Tea" and "Luckin Coffee" would be difficult, and voiced pessimism about the tea brand's prospects.

By August this year, events had played out as predicted: Luckin recalled the directly-operated "Little Deer Tea" stores. Several Beijing outlets were converted into "Luckin Coffee" stores, while franchised locations stayed as they were. But even without a recall, Luckin's damaged reputation cut their business volume sharply; many franchisees struggled and eventually shut their doors. And so "Little Deer Tea" gradually faded from public memory.

Strategic Reintegration and Market Reentry

Until recently, that is — when "Little Deer Tea," its standalone stores in Beijing long since wound down, began returning inside Luckin Coffee stores in a new form. Netizens noticed that the signage of a Luckin Coffee store in a Beijing shopping mall now reads "MIX Coffee × Tea." The menu carries not just coffee but new-style tea beverages, marked with "Little Deer Tea" branding.

Strategic Value and Market Positioning

From product line to independent brand and back to product line — does Luckin have new plans? Some analysts believe "Little Deer Tea" holds real value in the new-style tea market: a fairly complete product lineup and established brand recognition. Folding the series back in makes Luckin Coffee's product range more complete, and in a coffee market crowded with "numerous competing brands," the move strengthens its core competitiveness.

Price Adjustments and Market Response

The reintegration brought other changes to this "pilot" store as well — namely, its coffee delivery prices run 2-3 yuan higher than at other Luckin Coffee stores. Responding to questions, Luckin customer service staff said the company would soon adjust prices at more than 800 stores across 11 cities based on customer traffic and sales figures: all beverage delivery prices will rise by 3 yuan, while pickup prices stay unchanged.

Differential Pricing Strategy

On the question of "different prices for the same products," a Luckin Coffee representative also responded. The person explained that as Luckin develops rapidly, it will apply more refined management to store operations. Since operating costs vary between stores, the company will weigh factors such as rent, logistics, and operating expenses, and implement differential pricing according to each store's actual situation.

Public Reaction and Transparency Concerns

Because Luckin never publicly announced the "delivery price increases for some stores," netizens across multiple regions have criticized the move on social platforms as "devaluing the brand." Their view: if delivery prices are going up, the company should say so in advance — not silently raise prices without a word of communication...

Image source: Internet

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