In 2025, the company sourced coffee beans from three suppliers, dairy products from three suppliers, plant-based raw materials such as coconut milk from two suppliers, syrup from two suppliers, and pre-made food and beverage items from several selected sources. The company utilized three delivery service providers and three warehouse and fulfillment service providers. The limited number of suppliers presents risks including supply interruptions, inability to scale with business growth, termination or suspension of supply agreements, and potential disputes, which could negatively impact operations. Supplier contracts do not restrict suppliers from serving competitors, who may receive priority in order fulfillment. The supply chain is vulnerable to disruptions caused by factors such as management issues, regulatory changes, increased market demand, extreme weather, natural disasters, health epidemics, and other emergencies. Product quality and safety depend on the effectiveness of the company's quality control system as well as those of its suppliers and service providers, with no guarantee of consistent performance.
Luckin Coffee Inc's Comment on Supply Chain
In 2025, the company sourced coffee beans from three suppliers, dairy products from three suppliers, plant-based raw materials such as coconut milk from two suppliers, syrup from two suppliers, and pre-made food and beverage items from several selected sources. The company utilized three delivery service providers and three warehouse and fulfillment service providers. The limited number of suppliers presents risks including supply interruptions, inability to scale with business growth, termination or suspension of supply agreements, and potential disputes, which could negatively impact operations. Supplier contracts do not restrict suppliers from serving competitors, who may receive priority in order fulfillment. The supply chain is vulnerable to disruptions caused by factors such as management issues, regulatory changes, increased market demand, extreme weather, natural disasters, health epidemics, and other emergencies. Product quality and safety depend on the effectiveness of the company's quality control system as well as those of its suppliers and service providers, with no guarantee of consistent performance.
Sources:
Luckin Coffee Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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