Luckin Coffee(US:LKNCY) 3 6 Ke·2025-12-15 00:47Core Viewpoint - Luckin Coffee is facing significant criticism from employees regarding systematic issues of wage theft and excessive work demands, which contrasts sharply with its public image of rapid growth and operational efficiency [1][5][9]. Group 1: Employee Concerns - Employees claim that they are required to work 12 hours a day while only being compensated for 9 hours, effectively resulting in 3 hours of unpaid labor [1]. - There are reports of employees being forced to remain on standby during their supposed rest periods, which includes mandatory training that is not compensated [1][2]. - The introduction of ovens in stores has led to increased workloads and additional cleaning tasks that are not accounted for in working hours, further exacerbating employee dissatisfaction [3][4]. Group 2: Operational Challenges - Luckin Coffee's operational model emphasizes extreme efficiency, with strict time limits for drink preparation, which can lead to employee stress and burnout [6][10]. - The company employs a high degree of standardization in its operations, but this does not account for variations in order complexity or employee experience, leading to unrealistic performance expectations [6][7]. - The use of surveillance cameras with AI capabilities to monitor employee performance adds pressure to meet stringent operational metrics [7]. Group 3: Financial Performance - In Q3 2025, Luckin Coffee reported a total net revenue of 15.287 billion yuan, a 50.2% year-on-year increase, driven by rapid store expansion [10]. - Despite revenue growth, the company's net profit decreased by 2.7% to 1.278 billion yuan, indicating a troubling trend of "increased revenue without increased profit" [10][11]. - The surge in delivery costs, which rose by 211.4% to 2.889 billion yuan, has significantly impacted profitability, highlighting the financial strain from competitive pricing strategies [10]. Group 4: Future Outlook - The management acknowledges the unsustainability of the current operational model and is considering a shift back to a focus on self-pickup rather than delivery [11]. - There are plans to relaunch an IPO in the U.S., but ongoing employee grievances and financial performance issues may complicate this process [11][12]. - The company must address the balance between rapid expansion, cost control, and employee welfare to ensure long-term sustainability and growth in the competitive beverage market [12].