Luckin Coffee (瑞幸咖啡), a new coffee brand the “new retail professional coffeeshop operator”, has announced that it now opened in 13 cities, 400 stores, served 1.3 million customers with 5 million cups of coffee after 4 months of soft launch, TMT Post is reporting.

The CEO of Luckin Coffee, Qian Zhiya (钱治亚), is the former COO of UCAR (神州优车). The new coffee company has attracted RMB 1 billion ($156 million) in funding to spend on subsidies to attract new customers to compete against Starbucks.

“Why is there only 4 to 5 cups of coffee per capita consumption in mainland China compared to 750 in Europe, 400 in the United States, and 200 per capita coffee consumption in Japan and South Korea?” Qian said at the announcement. She attributed it to the two major pain points: high prices and inconvenience of purchasing a cup of coffee.

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Eva Yoo

Eva Yoo is Shanghai-based tech writer. Reach her at evayoo@technode.com