On May 9th, the topic of “Luckin Coffee Exposed for Moldy Ice Cubes” trended on Weibo, sparking discussions among netizens. As of the time of reporting, the topic had amassed 140 million views, with 25,000 discussions and 110,000 interactions. Despite efforts to contact Luckin Coffee’s brand representatives regarding the reasons behind the moldy ice cubes and how they planned to address customer concerns, the China Business Daily journalist received no response by the time of publication.
On May 8th, a consumer named Mr. Wang from Huanggang, Hubei, reported that he had purchased several cups of coffee from the Luckin Coffee store in the Aidu Building. Upon removing the lid to drink, he discovered that the ice cubes had grown mold. Mr. Wang claimed that he vomited three times after consuming the coffee and attempted to negotiate with the store for compensation. Currently, Mr. Wang has filed a complaint with the market supervision department.
According to responses from employees at the implicated store, the company is aware of the situation and is investigating the cause. “The specific cause of the moldy ice cubes is still unclear. Our store maintains good hygiene practices and strictly follows the requirements.”
Luckin Coffee’s customer service stated, “The issue has been noted and will be reported to the relevant authorities. We will certainly provide customers with a satisfactory resolution. All Luckin Coffee beverages are required to be prepared strictly according to the recipes and standards provided. Please refer to the official website for specific information.”
Comments in the trending topic’s section were lively, with netizens expressing various opinions. Some expressed skepticism: “After living for so long, this is the first time I’ve heard of ice cubes getting moldy.” Others analyzed the situation seriously: “Either the filtered water is too dirty, or the staff are being lazy and haven’t cleaned the ice maker.” Some shared similar experiences: “No wonder I had diarrhea after drinking a few times before. I thought it was my fault, but it turns out their ice cubes are not clean.”
A coffee shop owner told reporters that ice is the solid state of water and is difficult to develop mold on its own, especially when kept in a low-temperature environment for a long time. From the position of the moldy ice cubes in the video, it is likely that mold or other organic matter entered the water, such as through improper staff handling or the accidental addition of other dairy ingredients. In short, it’s either improper staff handling or inadequate cleanliness in the store.
This is not the first time Luckin Coffee has trended due to food safety issues. In October 2023, a customer in Shenyang, Liaoning, complained on social media about finding a staff ID card in their beverage from Luckin Coffee. In the same month, a consumer named Mr. Zhu claimed to have found plastic-like foreign objects in his Orange C Americano purchased from a Luckin Coffee store on the first floor of Haikou and Xing Guang Plaza.
Data from the Black Cat Complaints Platform shows that there are as many as 10,114 complaints related to Luckin Coffee, mainly focusing on difficulties in refunds and food safety issues, including reports of “white fibrous substances in Americano” and “phlegm in coffee,” “moldy and spoiled cakes,” and “bugs in cup lids.”
Behind the high incidence of food safety issues lies the hidden danger of Luckin Coffee’s rapid expansion. According to the financial report for the first quarter of 2024 released by Luckin Coffee, as of the end of March 2024, there were a total of 18,590 stores, with a net increase of 2,342 stores in the first quarter. Among them, directly operated stores increased by 1,571, and franchised stores increased by 771.
During the reporting period, revenue from Rui Xing’s self-operated stores reached 4.77 billion yuan, a year-on-year increase of 44%, driven by a 93% increase in the number of stores; revenue from franchised stores reached 1.51 billion yuan, a year-on-year increase of 33%, with a 110% increase in the number of franchised stores compared to the same period last year.
While accelerating store openings, Luckin Coffee returned to a loss in the first quarter of 2024. Financial data shows that the company incurred a loss of 65.1 million yuan in the first quarter of 2024, with an operating profit margin of -1%, while in the same quarter of 2023, the company achieved a net profit of 678.4 million yuan, with an operating profit margin of 15.3%.
Regarding the loss situation, Luckin Coffee’s Chairman and CEO, Guo Jin Yi, stated during the financial report conference call that it was partly due to objective factors and partly a result of proactive adjustments. Objectively, the first quarter’s cold wave and temperature fluctuations affected consumer travel; subjectively, the company regards market share as the main strategic development goal, adjusting the pace of store openings to quickly expand, further widening the gap between the brand and competitors. Due to structural adjustments in store locations, there is greater cyclicality in mall and street-side stores.
With the group returning to a loss and frequent food safety issues in stores, industry insiders believe that Luckin Coffee’s moldy ice cube incident highlights the company’s negligence towards food safety, necessitating strengthened internal management to prevent similar incidents from recurring. Additionally, after the exposure of the ice cube incident, Luckin Coffee’s brand side neither provided a solution nor made a positive statement, this passive handling attitude is likely to raise concerns about the brand’s reputation among the public, and thus, it is urgent for Luckin Coffee to provide an official explanation or improvement measures.