Brace yourselves Malaysians, there’s a new player in town. More particularly, in the coffee scene. That new player is… Lucky Cup, a coffee branch of the Chinese beverage conglomerate, MIXUE Bingcheng. Lucky Cup has been making a great impact in China with over 7000 stores, opening its first international store in Bandar Puchong Jaya on the 22nd of August. Since its opening, Lucky Cup has been the topic of choice on social media platforms. On the first to only day, Lucky Cup Puchong store has been able to sell upwards to 2000 cups. And guess what, the coffee does not break the bank with cups starting only at RM 1.50, if you like articles like this, make sure to also read about Low Cost Franchise Business in Malaysia 2025
What's On the Lucky Cup menu?
On Lucky Cup’s menu, coffee enthusiasts are spoiled for choice since the store serves over 30 unique beverages. These beverages include the classic coconut latte or the Iced Americano, and you can also fold in various newly invented options such the Matcha Lucky Ice Affogato. For the low price of 10 RM and above, and with most of the price falling within the RM1.50 to RM 8 range, coffee lovers can find these drinks at a great price compared to Starbucks or the ZUS coffee store. Lucky Cup has burst onto the Malaysian coffee scene and is making a great name for itself udner the budget coffee lovers.
MIXUE Bingcheng, the mother brand, is known for inexpensive, delicious, and refreshing tea drinks and ice cream. Launching Lucky Cup signals a major repositioning in their product-market focus. Industry analyst Tan Heng Hong comments, “‘Lucky Cup is meant to fill a gap in Mixue’s product portfolio. As Mixue is a market leader in tea and desserts, Lucky Cup offers the same level of innovation and low pricing for coffee, especially for countries like Malaysia.”
Delicious Options Worth The Price
The menu at Lucky Cup from what can be seen goes into 6 separate sections. These are Classic Coffees, Fruit Coffees, Signature Lattes, Fruits Teas, Lucky Frappes, and Non-Coffee Drinks. A few items that stand out are the Fresh Lemon Coffee at RM3.50, the Strawberry Latte sold for RM6 and even the Matcha Lucky Frappe at priced at RM7.50. For clients with a sweet tooth, our Vanilla Ice Cream that goes for RM1.50 is a great choice. The chain is currently working on introducing a menu specifically for Malaysia, with designated food sections aiming to cater to the Southeast Asian flavors.
What This Means for ZUS Coffee and Starbucks?
Lucky cup’s entrance into Malaysia’s coffee market is already underselling ZUS Coffee and Starbucks. Their lowest cup of coffee is nearly free, at RM1.50. Lucky Cup is selling its coffee at prices similar as a cheap breakfast spent by a primary school child. Comparatively, ZUS coffee’s signature lattes range from 8 RM to 20 RM and Starbucks ranges from 15 RM and beyond.
The customer segment that is likely to switch to Lucky Cup is children, teenagers, and young adults as Lucky cup coffee prices is similar to a cheap breakfast. I can absolutely predict ZUS coffee’s target market is also students. Their tech order and delivery systems is probably the only real value ZUS coffee provides. Yes value better be enhanced seeing as ZUS coffee is still a front runner. Starbucks is more established as a head of the market but spends more as a fiscal risk. Their competitors are world’s best barista coffee. Relatively to prices Starbucks is Starbucks overpriced. 95 percent of the Starbucks profit is to cover the overpriced coffee and that’s why used as fiscal risk. Starbucks barista have the skill that is known to have a high value. Maybe Starbucks can have more barista so that a portion of the overpriced coffee is overused.
Lucky cup also covers low budgets of the market and their competitors do not, hence the high value of risk. Their customer target is the spent their entire day coffeeing on the cheap. Lucky cup has experimental cafes in Malaysia and that’s why over innovation is easily adapted.
Lucky Cup’s Impact on the Future of Coffee in Malaysia
The debut of Lucky Cup Coffee Malaysia may indicate a changing trend towards a more budget-friendly cafe culture in Malaysia. It has the potential to ‘fast-foodify’ coffee culture due to the pricing strategy that is geared towards students and other young professionals. Foamy cups of Fruit Coffee and foamy cups of Matcha Coffee Affogato clearly cater to the grandiose, over-the-top, sometimes ridiculous style that resonates with how younger generations approach social media, fostering more ‘Instagrammable’ opportunities. Over time with their new growth strategy, they may bring ‘Instagrammable’ coffee shops that blend Gen Z and millennial favorites such as adding local Durian or Kopi flavors to coffee. If the plan works, they will have lowered the price benchmarks for coffee while providing value for the customer, and that will make other coffee chain competitors rethink their price and menu creativity strategies.
Lucky Cup Outlets & Locations
The newest outlet is in Puchong, this is only a starting point. Lucky Cup is set to open new locations around UTAR Univeristy(Sg Long), Kota Damansara, and Jalan Tun Perak. This will mark the start of Luck Cup’s expansion into Malaysia. In China, the brand aims to expand to 10,000 stores by the end of 2025. Analysts believe similar expansion plans will severely undersell the competition. “Lucky Cup’s sub-$1.50 coffee undercuts rivals, which could disrupt the market” The chain currently faces a lot of competition from local businesses such as ZUS Coffee and GIGI Coffee due to the unique and tech savvy menu offered.
Challenges in a Competitive Market
Malaysia has a widespread and colorful coffee industry that ranges from local businesses and international brands like Starbucks and Luckin Coffee. Lucky Cup has a competitive advantage as its prices are ultra-low but their success will be reliant on how well they incorporate elements of Malaysia’s distinct coffee culture which includes a sensational fondness for sweet white coffee and flavorful local brews, “Southeast Asia’s coffee market is fragmented, with each country having distinct preferences,” noted an industry analyst. “Lucky Cup will need to balance its affordability with strong branding and localized ways to customize the product.”
Visit Lucky Cup
If you are an anxious fan of the brand, their very first outlet has recently opened on 43, Jalan Kenari 17c, Bandar Puchong Jaya, 47100 Puchong, Selangor. They serve wonderful hot coffee at extremely competitive prices. The coffee shop is open from 7:30 AM to 11:00 PM.
As Lucky Cup brings its business to Malaysia, it appears that MIXUE is making a considerable investment on coffee. Given its incredibly low cost, varied offerings and plans for rapid growth, Lucky Cup is on a pathway to become a favorite location for coffee drinkers throughout Malaysia. It is still to be determined if it will be able to earn a sustainable position in Malaysia’s coffee market, but for now it is providing coffee at a low price.
