Chinese budget coffee chain Luckin Coffee plans to open new outlets in Central and other key business districts, The Standard reported Tuesday.

The company has launched 12 stores in Hong Kong within six months. Its latest outlet opened on May 24 at Park Central in Tseung Kwan O. A SpongeBob-themed concept store will operate at its Siu Sai Wan branch from May 31 to June 29, the report said.

Luckin officially entered the Hong Kong market last December, opening five stores simultaneously in locations including Sheung Wan, Tsim Sha Tsui, Mong Kok, and Sha Tin, The Standard said.

The report said Luckin has built its reputation in mainland China on steep discounts, with drinks priced as low as 9.90 yuan.

However, in Hong Kong, its menu is priced on par with Starbucks, HK$39 for an Americano or Latte, and HK$42 for its signature Coconut Milk Latte, which is 26% to 59% higher than mainland prices, the report added.

To attract local customers, the brand is promoting a HK$15.90 first-order deal via its app, according to The Standard.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)