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Core Insights - The ongoing subsidy war among food delivery platforms is driving coffee prices to new lows, benefiting consumer access to fresh coffee but creating operational challenges for coffee shop employees [1][10] - Luckin Coffee is experiencing significant operational strain due to high demand from the subsidy war, leading to increased workloads for staff and concerns about employee retention [2][6][11] - The company is facing a decline in same-store sales and profitability, attributed to competitive pricing pressures and rising operational costs [10][11] Group 1: Market Dynamics - The subsidy war has led to promotional offers such as "2 yuan for Luckin coffee," resulting in increased consumer purchases and brand penetration in the coffee market [1] - Competitors like Kudi Coffee are aggressively expanding, with Kudi announcing a continuation of its subsidy policy until the end of 2028, further intensifying the competitive landscape [10][11] Group 2: Operational Challenges - Employees report overwhelming workloads, with some making up to 300 cups of coffee in a single morning, leading to physical strain and dissatisfaction with working conditions [2][7] - The introduction of new products and high-frequency launches has increased operational complexity, causing frustration among staff who feel overburdened [3][4][5] Group 3: Strategic Adjustments - Luckin Coffee is shifting its strategy to focus on market share expansion, with a significant increase in store openings, adding 1,757 new stores in a single quarter [10] - The company is implementing cost-cutting measures, including reducing discounts and optimizing labor costs through AI scheduling systems, in response to rising operational expenses [11]