China Bubble & Brew: Franchisee Temperature Check: Expert Call Takeaways

研报英文原文证据摘录

China Bubble & Brew: Franchisee Temperature Check: Expert Call Takeaways

J P M O R G A N Asia Pacific Equity Research

27 July 2026

China Bubble & Brew

Franchisee Temperature Check: Expert Call Takeaways

We hosted an expert call on 27 July to assess the latest competitive dynamics. The Consumer

ACspeaker operates 49 Luckin Coffee stores, three Chagee stores, and two Mixue Jessie Xu

stores across Hebei, Henan, Shaanxi, Inner Mongolia, and Anhui. He noted that (852) 2800-8590

headwinds from the unwinding of third-party delivery subsidies and intensified jessie.j.xu@jpmorgan.com

competition are weighing on store-level execution. On the positive side, we see J.P.MorganMorganBrokingSecurities(Hong (AsiaKong)Pacific)LimitedLimited/ J.P.

signs of ASP and gross margin recovery at Luckin, and a stabilization in

Sylvia Hu

performance at Chagee. Key takeaways from the call are summarized below. (86-21) 6106-6284

Please refer to our 1H26 sector preview note for our latest views. sylvia.hu@jpmorgan.com

SAC Registration Number: S1730526010001

Luckin: leading position intact; ASP and gross margin recovering J.P. Morgan Securities (China) Company Limited

• SSS remains under pressure, while ASP is rebounding. The expert indicated

Jul 21, 2026 : China Bubble & Brew: 1H26 that most of his 49 Luckin stores recorded YTD GMV declines of 10–15%

YoY, driven primarily by softer demand and intensifying competition from Preview: Tea brands hit the

both new Luckin stores and peers. Cup volume has declined, but ASP has brakes, Luckin hits the gas (link)

improved due to (1) a reduction in RMB 9.9 promotions, (2) higher pricing on

delivery platforms, and (3) increased premiumization via new product

launches. Delivery mix has largely stabilized at ~50% (vs. as high as ~80%