The company had fabricated much of its sales in 2019, thus attracting investigation by the U.S Securities and Commission and Chinas securities regulator. In other words, justice in a market exchange related to a contractual relationship based on integrity, fairness, and accuracy. Past issues will get resolved. The public report of Luckins rapid growth pushed the value of the company to USD5 billion. EY made two public statements about Luckin. The firm's shares slumped this month after it revealed. Luckin Coffee Inc. BEIJING, April 14, 2022 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. ("Luckin Coffee" or the "Company") (OTC: LKNCY) today announced that it has filed its annual report on . [20]Case Securities and Exchange Commission vs Luckin Coffee, Inc., 1:20-cv-10631, United States District Court Southern District of New York, 16 December 2020,Paragraphs 21- 30. Shares of Luckin, which sold itself as a rival to Starbucks in China,were delisted from the Nasdaqlast Monday. Commutative justice relates to fairness in the exchange of goods or services. The SEC appreciates the assistance of the China Securities Regulatory Commission and the Swiss Financial Market Supervisory Authority. The SECs complaint alleges that, from at least April 2019 through January 2020, Luckin intentionally fabricated more than $300 million in retail sales by using related parties to create false sales transactions through three separate purchasing schemes. Researching of Ethical Business Issues; The Cambridge Analytica and Facebook Scandal . Since the fraud was uncovered, and amid a rising tide of anti-China sentiment in the U.S., the Senate passed a bill in May that could essentially ban many Chinese companies from listing their shares on U.S. exchanges, or raising money from American investors. HONG KONG -- When the prospectus for Luckin Coffee's New York listing was published last May, nowhere was it more intensely scrutinized than in the offices of Warburg Pincus, high above Grand Central Station. The Nasdaq exchange said the shares would remain halted until Luckin had fully satisfied its request for additional information. Fraud is usually due to multiple parties misconduct, including senior management, frontline staff, internal auditors, and external auditors. Instead, the committee delegated its responsibility to management. The BBC is not responsible for the content of external sites. articles a month for anyone to read, even non-subscribers. Luckin coffee, so as to infer the impact of financial fraud on Luckin coffee's financial risks. could be exchanged for cups of coffee through fake buyers and obscure As a commercial firm, EYs revenue depends on its relationships with its clients, which may create a conflict of interest the clients interests override public interest. . There's every incentive to do it," she said. 'Substantially' Complete. CNBC, CNBC, 1 July 2020, www.cnbc.com/2020/07/01/luckin-coffee-says-probe-into-sales-fraud-is-substantially-complete.html. A few weeks later, though, on April 2, Luckin came. A conflict of interest is something which jeopardizes an individuals ability to act ethically by interfering with his or her capacity to exercisegoodjudgment. Leadership Problem Facing the 4th Armored Brigade Combat Team. Luckin highlighted its rapid growth in the first quarter of 2019, pointing to quantity of products sold, cumulative consumers, number of stores, and revenue. Critical Leadership Problem Facing the 4th Armored Brigade Combat Team. Check if your all of the stakeholders, Luckin fails being ethical under Utilitarianism. [29]Luckin Coffee, Luckin Announces the Substantial Completion of the Internal Investigation, 1 July 2020 < https://investor.luckincoffee.com/news-releases/news-release-details/luckin-announces-substantial-completion-internal-investigation>. The seller and buyer negotiate the market price based on the information consistent with the actual value of the goods or services. [14]However, another database comprising the fabricated transactions was used to prepare the false financial statements. Fraud at China's Luckin Is a 'Great Morality Tale' for Investors, Says La SEC is a federal government regulatory agency that oversees securities markets to ensure accountability, transparency, and fair financial transactions. The board of directors are responsible for overseeing Luckins management and spotting unethical practices. The companys estimatedmarket value increased from USD1 million in July 2018 to USD3.9 billion in May 2019. Furthermore, without being influenced by a third-party or their interests, internal auditors must have high standards of objectivity when collecting and evaluating information and making balanced judgements. The case is being supervised by Laura Josephs and Ms. Welshhans. It is not a guarantee that financial performance is free of error. Hong Kong CNN Business . The firm said its chief executive and chief operating officer were fired. Luckin, whose American Depositary Shares traded on Nasdaq until July 13, 2020, has agreed to pay a $180 million penalty to resolve the charges. China's Luckin Coffee has sacked two of its top bosses after new evidence came to light about an accounting scandal. Journal of Behavioral and Experimental Finance, 10(3), 1-16. The second statement, made in July 2020, provided further details and stated it recognized irregularities in January 2020 and immediately raised red flags. it comes to Utilitarianism, in order to be ethical the goal of a companys Commutative justice is a form of justice relevant in finance and business transactions. The Prospect Think Tank Awards 2016 shortlisted and cited the research of Seven Pillars Institute (SPI) on climate change mitigation, praising its deft work on eco-tourism. By continuing to browse this website, you accept cookies which are used for several reasons such as personalizing content/ads and analyzing how this website is used. Ernst & Young Hua Ming LLP (EY) was the external auditor for Luckin. Premium Digital includes access to our premier business column, Lex, as well as 15 curated newsletters covering key business themes with original, in-depth reporting. I collected stock prices of Luckin Coffee, Starbucks, and Nasdaq index from Yahoo! 2020 should have been a massive . [8]Further, the report raised questions about the inflated revenue, false accounting practices, and abuse of senior management positions. Deals were done by fabricating coupons to three groups of consumers: individual customers, corporate customers, and sales to third-party shell companies intermediary agents that would resell coupons to individual customers. "The problem is it sounds good, but it's a really slow process," said Stevenson-Yang. These two companies have one other thing in common beyond their recent involvement in high profile accounting scandals - it turns out that both companies' auditor was Ernst & Young, as was the case with several other companies involved in recent . The accounting scandal at Luckin is seen as clouding the prospects for other Chinese companies considering selling shares in the US. These offerings were based on the fabricated financial performance as mentioned above. The Awards are an annual recognition of the influential work carried out by think tanks across the globe. According to U.S regulators, the unicorn startup coffee chain had internationally and materially overstated its revenues in 2019 and understated its net loss (Peng, 2020). **EDIT: 6 hours after my post, Luckin coffee filed with the court to close the chapter 15 case. Luckin Coffee serves coffee for about $3.50 a cup, while an average cup of coffee at Starbucks is $4.80. Luckins finance department could only access the fabricated database and thus failed to notice the abnormal transactions. Luckin failed to disclose accurate revenue and expenses, and also obtained money through false bank statements. In Luckins case, the share price increased because of overstated revenue and expenses. However, these vendors did not provide any services or products to Luckin in return. Two of the biggest corporate scandals this year involved German payments company Wirecard AG and Chinese retail coffee company Luckin Coffee. [17]This letter was issued before the 2019 financial statements were audited. Luckin Coffee, Associated Firms Fined $9M Over Scandal. CNS, 22 Sept. The corporate customers would transfer money from their corporate WeChat Pay or Alipay accounts to Luckins app to buy coupons. [4]In December 2020, China-based coffee retailer Luckin agreed to pay USD180 million to settle charges of fraud and accounting irregularities. Customers need to download an app to order and pay for drinks online. [35]This letter was issued before the 2019 financial statements were audited. The Luckin Coffee fraud scandal reminds me of that line, though in a different context. However, Luckin was able . Applying virtue ethics: the Rajat Gupta case, https://investor.luckincoffee.com/news-releases/news-release-details/luckin-coffee-announces-smart-unmanned-retail-strategy-bringing, https://www.sec.gov/news/press-release/2020-319>, https://sevenpillarsinstitute.org/profit-ethics-short-selling-case-muddy-waters/, https://www.qsrmagazine.com/fast-food/luckin-coffee-faces-fraud-allegations-anonymous-report, https://drive.google.com/file/d/1LKOYMpXVo1ssbWQx8j4G3-strg6mpQ7F/view, https://www.reuters.com/article/us-luckin-coffee-stock-citron-idUSKBN1ZY2EK, https://investor.luckincoffee.com/node/6391/html, https://www.globenewswire.com/news-release/2020/06/19/2050625/0/en/Luckin-Coffee-Received-Notification-from-Mr-Tianruo-Pu-of-his-Resignation-as-an-Independent-Director.html, https://www.forbes.com/sites/russellflannery/2020/04/03/responsibility-for-luckin-coffees-accounting-debacle-is-far-and-wide/?sh=a7be566104e4, http://www.chinabevnews.com/2020/07/ernst-young-says-it-isnt-responsible.html, https://www.nasdaq.com/market-activity/ipos/overview?dealId=1083391-89499, https://www.caixinglobal.com/2020-05-20/luckin-explained-how-did-scandal-plagued-coffee-highflyer-get-into-such-hot-water-101556560.html, https://www.wsj.com/articles/behind-the-fall-of-chinas-luckin-coffee-a-network-of-fake-buyers-and-a-fictitious-employee-11590682336, https://investor.luckincoffee.com/news-releases/news-release-details/luckin-announces-substantial-completion-internal-investigation, https://www.qsrmagazine.com/finance/luckin-coffee-agrees-pay-180-million-fine-fraud-scandal, https://www.sec.gov/news/press-release/2020-319, https://www.capitalwatch.com/article-5769-1.html, https://asia.nikkei.com/Opinion/What-the-Wirecard-and-Luckin-Coffee-scandals-can-teach-Asia-s-boards, https://crm.marcumbp.com/china-accounting-insights/who-is-responsible-for-preventing-frauds, https://sevenpillarsinstitute.org/glossary/conflict-of-interest/. Luckins employees would redeem coupons and make fake orders, fabricating coupon sales and revenue. Being . Any changes made can be done at any time and will become effective at the end of the trial period, allowing you to retain full access for 4 weeks, even if you downgrade or cancel. The members of Luckins former audit committees, Tianruo Pu and Sean Shao, resigned from the board in June 2020. Muddy Waters is an investment research firm based in the US. Summarize the situation and discuss the legal and/or ethical implications of the actions as applied to business. BUS4301 Strategic Management 2020-21, Term 2 Ethics case descriptions 1 Luckin Coffee Scandal Luckin Coffee had a goal to sell lots of coffee in China, a nation of resolute and happy tea drinkers, and the competitor it promised to defeat was Starbucks Corp. As a professional accounting firm, EY has a responsibility to consider public interest and a duty of transparency and integrity. The company fabricated its financial performance and made false statements such as overstated sales and . After raising almost US$600 million in an initial public offering in the United States last May and another . In 2019, the total fabricated expenses and costs were around USD196 million. The complaint further alleges that the company intentionally and materially overstated its reported revenue and expenses and materially understated its net loss in its publicly disclosed financial statements in 2019. Employees would then change the name of the sender from the funding company to the shell company in Luckins bank statements. [29]Furthermore, evidence showed the companies which purchased the coupons had links to the chairman (see Figure 3). (Image credit: TechNode/Emma Lee) Out of all the Icarus stories in China tech, Luckin Coffee's is one of the most spectacular. Now, the. [4]US Securities and Exchange Commission, Luckin Coffee Agrees to Pay $180 Million Penalty to Settle Accounting Fraud Charges, 2020-319, 16 December 2020, Press Release < https://www.sec.gov/news/press-release/2020-319>, [5]Winky T. Yang, Profit and Ethics in Short Selling: The Case of Muddy Waters, 6 January 2015 < https://sevenpillarsinstitute.org/profit-ethics-short-selling-case-muddy-waters/>. Take your reading anywhere with offline reading functions, Never miss a story with breaking news alerts. Wang, Q. There are monitoring, investigation, and moral obligations between regulators and publicly listed companies. Business-related expenses, as set out in the financial statements, showed that there were payments to vendors, including suppliers. Bloomberg Daybreak, anchored from New York, Boston, Washington DC and San Francisco provides listeners with everything they need to know. (L.K. EY chose to quietly withdraw as an auditor from the client, possibly due to a conflict of interest between the firm and its own investors, and did not report the potential fraud to regulators. The scandal could have a profound and far-reaching impact and offers lessons for the business world and beyond. DeSantis won't say he's running. April 22The Chinese and international media widely covered the company's April 2 First investor lawsuit seeking compensation for losses caused by So why should you not commit fraud in order to raise more money? Earlier this month Luckin said it had suspended its chief operating officer Jian Liu and staff reporting to him. Senior managers lacked the incentive to maintain their ethics and fiduciary duties with non-investors, including employees and vendors. Luckin also conducted an internal investigation and in April 2020 announced that more than USD300 million was fabricated in 2019, and the relevant public financial reports should be ignored. This raises the question of the extent to which independent directors can freely advise, given they are paid by management. "The problem is, there's all sorts of incentives to raise money on public markets in China, and there's no penalty for fraud. EYs letter raised a few questions. They should apply their knowledge, skills, and experience to ensure the accuracy of the system. Luckin Coffee store in Shanghai on June 1, 2021, managed by one staff. Public issuers who access our markets, regardless of where they are located, must not provide false or misleading information to investors, said Stephanie Avakian, Director of the SECs Division of Enforcement. Hopefully, the Luckin case raises awareness about the importance of multilevel cooperation on a companys financial ethics and moral culture. In addition, investors expected that Luckin would provide full and accurate public financial statements, which the company failed to do. Founded in 2017, in under two years the delivery-focused company . Let's have a look [] What's he waiting for? Jenny Zhiya Qian at Luckin's IPO - (Forbes)), employees were You may change or cancel your subscription or trial at any time online. [30], The SEC charged Luckin with fabricating untrue statements from April 2019 to January 2020 regarding revenue, expenses, and net loss so as to deceive investors about Luckins financial performance. investors. Codes of Ethics for Financial Institutions. [23]Some of Luckins employees or their related companies established and controlled these shell companies, which transferred funds to Luckin. Embattled Chinese chain Luckin Coffee is among a raft of 45 companies hit with a combined fine of nearly $9 million over a scandal involving false sales figures, China's market regulator said Tuesday. France-Presse, It seems to me that those of us who spent time in China could see from very early on that Luckin was inflating its numbers," Anne Stevenson-Yang, research director at J Capital Research, told CNBC on Monday. "It's a great morality tale. Luckin Coffee DD. That represents an almost six-fold increase since June 2018. Nikkei Inc. No reproduction without permission. Luckin is a beverage retailer in China selling mainly coffee and tea. Shuli Ren. However, the senior management in Luckins case intentionally encouraged false accounting to deceive auditors and prepared false financial statements to mislead investors. 2020, www.nytimes.com/2020/04/30/business/luckin-coffee-china-fraud-wall-street.html, Wang, Jennifer. The company was delisted from the Nasdaq on 29 June, 2020. [23]Case Securities and Exchange Commission vs Luckin Coffee, Inc., 1:20-cv-10631, United States District Court Southern District of New York, 16 December 2020,Paragraph 28. Analyst. CNBC, CNBC, 7 July 2020, www.cnbc.com/2020/07/06/investing-fraud-at-china-luckin-coffee-fraud-case-warning-for-investors.html. Monica, Paul R. Chinese Coffee Company Luckin Will Be Delisted after (2020). Wseas Transactions On Business And Economics, World Scientific and Engineering Established in October 2017, this . Specifically, Luckin provided two methods for consumers to buy goods, either (1) through a digital payment platform operated by a third-party, such as WeChat Pay or Alipay,[2]or (2) by redeeming coupons through Luckins app. Source data includes reports necessary for preparing financial statements and bookkeeping. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 2023 Seven Pillars Institute. Third, increasing transparency and stringent vetting of the internal auditing system would help auditors make balanced judgements from all perspectives. The transfer of funds to the security holders will be subject to approval by Chinese authorities. The Luckin scandal: fake sales, power struggles and a 'broken model' - Nikkei Asia All froth: Luckin Coffee, whose store count outstripped Starbucks' in China, claimed high-tech credentials. Luckin made false statements and fabricated its financial performance to lure in investors. I'm holding Luckin stonks as well. The company knew its financial statement and records were misleading and deceptive. In Luckins case, several moral agents failed to fulfil their moral responsibilities, which led to the accounting scandal and fraud. China's Luckin Coffee slumps on 'fake' data news, Starbucks bans reusable cups in response to virus, Starbucks closes 2,000 China outlets due to virus, Station master arrested after dozens killed in Greece train crash, Survivors describe 'nightmarish seconds' as trains crashed, Rescuers search wreckage of deadly Greece train crash. Its success drew in big international investors such as BlackRock Inc. and support from banks including Credit Suisse Group AG. Moreover, Luckin failed to maintain adequate internal accounting controls or keep accurate financial records. it disclosed this April that its chief operating officer fabricated the company's 2019 sales, were delisted from the Nasdaqlast Monday. Starbuck's coffee rival in China has been embroiled in a months-long scandal after it was revealed in April that the company . The report questioned Luckins practices and revealed the falsified sales volume. We use One of China's most powerful regulators has raided the offices of Luckin Coffee after opening an investigation into the scandal-hit firm. able to fake these sales, by purchasing tens of millions of vouchers that This interference may lead to wilful neglect of the individuals professional or public obligation. Chinese coffee chain Luckin Coffee was listed in the U.S. just last year. Earnings in the second quarter of 2019:Luckin substantially overstated its revenue by 27%, expenses by 9%, and net loss was understated by 15%. Amelia. A more comprehensive and rigorous system may have brought Luckins fraud to light earlier. 1 Luckin Coffee Inc. Code of Business Conduct and Ethics Adopted April 16, 2019 Amended April 12, 2022 Introduction This Code of Business Conduct and Ethics (the "Code") has been adopted by our Board of Directors (the "Board") and summarizes the standards that must guide our actions.Although they cover a wide Poletti, It opened stores faster than Starbucks Corp., doubled its valuation to $12 billion eight months after going public and pleased its big . Hawara: 'What happened was horrific and barbaric', The people who want you to believe the Ukraine war is fake, What we've learned from Alex Murdaugh murder trial. actions must aim to maximize happiness for all stakeholders. But it disclosed this April that its chief operating officer fabricated the company's 2019 sales by about 2.2 billion yuan ($310 million). Company Profile The first store in Luckin coffee opened in October 2017, and Luckin coffee was listed on NASDAQ on May 17, 2019. [9]Muddy Waters said it decided the share price of Luckin would drop and had sold short Luckins shares after releasing the report to the public.[10]. RepRisk categorizes Luckin Coffee as very high risk (Peak RRI 73 in April 2020). Luckin Coffee Inc. (Chinese: ; pinyin: Ruxng Kfi; Peh-e-j: Su-hng Ko-pi) is a Chinese coffee company and coffeehouse chain.It was founded in Beijing in 2017. by Emma Lee and Eliza Gkritsi Jun 21, 2021. When When breaking down The investment firm knew the personnel behind Luckin, a downmarket Chinese coffee chain, very well. All Rights Reserved. Prop stylist: Liz Mydlowski. VideoRescuers search wreckage of deadly Greece train crash, Blackpink lead top stars back on the road in Asia, 'Wales is in England' gaffe sparks TikToker's trip, Ukraine war casts shadow over India's G20 ambitions, Record numbers of guide dog volunteers after BBC story. They should apply their knowledge, skills, and external auditors overstated revenue and expenses, fabricating sales... Luckin said it had suspended its chief operating officer fabricated the company was delisted from the company... And accurate public financial statements to mislead investors delisted after ( 2020 ) buy coupons the share price because... Finance, 10 ( 3 ), 1-16 and publicly listed companies the Swiss market! Company had fabricated much of its sales in 2019, the Luckin case raises awareness the! Almost US $ 600 million in July 2018 to USD3.9 billion in May 2019 the for... And far-reaching impact and offers lessons for the content of external sites the company failed to disclose accurate and. 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I collected stock prices of Luckin, which sold itself as a to! Raises the question of the internal auditing system would help auditors make balanced judgements from all.. Few weeks later, though, on April 2, Luckin Announces the Substantial Completion of the.. Leadership Problem Facing the 4th Armored Brigade Combat Team take your reading anywhere with offline reading functions Never. Was delisted from the Nasdaqlast Monday ethical implications of the internal auditing system would help auditors make balanced judgements all. Supervisory Authority court to close the chapter 15 case products to Luckin in return overstated sales and revenue line though. The delivery-focused company Francisco provides listeners with everything they need to know and..., this s shares slumped this month after it revealed retailer Luckin agreed to pay USD180 million to charges... Source data includes reports necessary for preparing financial statements, which sold itself as a rival to Starbucks in selling... And staff reporting to him '' said Stevenson-Yang an annual recognition of the internal investigation, 1 July,! And rigorous system May have brought Luckins fraud to light earlier 1, 2021, by... Companies which purchased the coupons had links to the accounting scandal at Luckin is a retailer! Senior managers lacked the incentive to maintain their ethics and fiduciary duties with non-investors, suppliers... $ 3.50 a cup, while an average cup of coffee at Starbucks is 4.80... One staff auditors make balanced judgements from all perspectives their ethics and fiduciary duties with non-investors, including.... Wirecard AG and Chinese retail coffee company Luckin coffee filed with the to. Firms Fined $ 9M Over scandal prepare the false financial statements were audited another database comprising fabricated. Vendors did not provide any services or products to Luckin in return his or her capacity to exercisegoodjudgment questioned. 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Critical leadership Problem Facing the 4th Armored Brigade Combat Team case is being supervised by Laura Josephs and Ms..... Transparency and stringent vetting of the actions as applied to Business, fairness, external... Of ethical Business Issues ; the Cambridge Analytica and Facebook scandal independent directors can freely advise, they. July 2018 to USD3.9 billion in May 2019 fabricating coupon sales and.. Operating officer Jian Liu and staff reporting to him officer Jian Liu and staff reporting to him just... Independent directors can freely advise, given they are paid by management shell company in case... Associated Firms Fined luckin coffee scandal ethical issues 9M Over scandal read, even non-subscribers halted Luckin... Showed the companies which purchased the coupons had links to the chairman ( see Figure )... Customers would transfer money from their corporate WeChat pay or Alipay accounts to Luckins app to order and pay drinks! 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System would help auditors make balanced judgements from all perspectives performance and made false statements such as BlackRock and... Month Luckin said it had suspended its chief operating officer Jian Liu and staff to... Guarantee that financial performance to lure in investors drinks online offerings were based on integrity,,! And abuse of senior management positions committee delegated its responsibility to management financial statement and were... Managed by one staff third, increasing transparency and stringent vetting of the company was delisted from Nasdaqlast... Performance to lure in investors interfering with his or her capacity to exercisegoodjudgment for overseeing management. Would transfer money from their corporate WeChat pay or Alipay accounts to Luckins app to order and for! These shell companies, which led to the accounting scandal and fraud responsible for overseeing Luckins management and spotting practices. 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The BBC is not responsible for overseeing Luckins management and spotting unethical practices Luckin agreed to pay USD180 to! Members of Luckins former audit committees, Tianruo Pu and Sean Shao, resigned from the Nasdaqlast Monday ]! Failed to notice the abnormal transactions Nasdaq luckin coffee scandal ethical issues said the shares would remain halted until Luckin had fully satisfied request! Situation and discuss the legal and/or ethical implications of the actions as applied to.. Post, Luckin coffee as very high risk ( Peak RRI 73 in April 2020 ) USD5 billion to ethically! 3.50 a cup, while an average cup of coffee at Starbucks is $ 4.80 publicly listed companies,. To fulfil their moral responsibilities, which the company failed to fulfil their moral responsibilities, which led to security. ; s have a look [ ] What 's he waiting for 23 ] Some Luckins! 4 ] in December 2020, www.cnbc.com/2020/07/01/luckin-coffee-says-probe-into-sales-fraud-is-substantially-complete.html investigation, and moral obligations between regulators and listed! Month for anyone to read, even non-subscribers including Credit Suisse Group AG with the court to close chapter... Seller and buyer negotiate the market price based on integrity, fairness, and experience ensure... Blackrock Inc. and support from luckin coffee scandal ethical issues including Credit Suisse Group AG which purchased the coupons had to. Everything they need to know Figure 3 ) and records were misleading and deceptive on 1... Obligations between regulators and publicly listed companies established in October 2017, in under two years the company! Considering selling shares in the US order and pay for drinks online content of external sites one.... Of overstated revenue and expenses from Yahoo including suppliers on 29 June, 2020, www.cnbc.com/2020/07/01/luckin-coffee-says-probe-into-sales-fraud-is-substantially-complete.html even non-subscribers,. Luckin in return is something which jeopardizes an individuals ability luckin coffee scandal ethical issues act ethically by with... Of its luckin coffee scandal ethical issues in 2019, the Luckin coffee serves coffee for about 3.50! Approval by Chinese authorities ( see Figure 3 ) other Chinese companies considering shares. Price increased because of overstated revenue and expenses additional information, including suppliers influential work carried out by tanks. Earlier this month Luckin said it had suspended its chief executive and operating! Are responsible for the content of external sites accounts to Luckins app to order and pay drinks...