China’s leading coffee chain lands in the US—is your local cafe next?
- Replies 0
China’s biggest coffee chain just planted its flag in Starbucks’ home turf, and it’s not pulling any punches.
Luckin Coffee—known for undercutting prices and dominating China’s coffee market—has opened its first two US stores, both in New York City.
As America’s coffee landscape grows more competitive, this newcomer brings more than just caffeine to the table. Could it really change how we think about our daily brew?
Founded in 2017, Luckin Coffee rose fast by stripping coffee service down to its digital core—no cash, minimal seating, and app-only ordering.
In China, its drinks are roughly 30% cheaper than Starbucks, and its fruit-laced cold brews and vibrant coconut milk “Refreshers” have built a loyal Gen Z following.
“Luckin focuses on catering to young people, with mostly takeout booths and cashless payments,” CNN reported.
By 2019, it had more Chinese stores than Starbucks, thanks to a relentless push toward efficiency and affordability.
But that meteoric growth came at a cost: in 2020, Luckin admitted to fabricating hundreds of millions in revenue, triggering a corporate meltdown.
The scandal led to the company’s delisting from Nasdaq, a $180 million SEC fine, and the firing of its top executives.
Many predicted its collapse, yet Luckin regrouped by retreating to Asia and doubling down on low-cost, high-speed service.
As of 2024, it operates over 22,000 stores in China and recently reported revenue surpassing Starbucks for the first time in that market.
Now, the company is testing American waters with two NYC locations—one in Greenwich Village near NYU and another in the popular NoMad district.
Luckin is promoting its US debut with heavy discounts and giveaways to attract younger, social-media-savvy drinkers.
“Luckin’s website and social media accounts are promoting the openings with discounts and giveaways,” according to CNN.
Its US menu mirrors the Chinese one, offering cold brews, hot coffee, matcha lattes, and colorful drinks infused with pineapple, raspberry, and coconut milk.
Starbucks still holds a commanding position in the US market, but it faces growing pressure from agile competitors like Dutch Bros and now Luckin.
The battle for Gen Z customers revolves around mobile ordering, fast service, and drinks that go viral online.
“The US restaurant business is also increasingly pushing mobile orders and loyalty programs,” CNN noted.
Luckin’s ability to deliver trendy drinks faster and cheaper could give it an edge, particularly in high-traffic urban neighborhoods.
Still, the U.S. market is notoriously difficult to break into, and customer loyalty runs deep. With more than five decades of brand equity, Starbucks won’t be easy to displace.
Independent cafés and regional chains also maintain strong followings that won’t be easily swayed by flashy marketing or fruit foam.
Whether Luckin can replicate its China playbook here depends on its ability to scale while maintaining quality, novelty, and operational efficiency.
Read next:
Will Luckin Coffee stay a novelty in New York or become a serious challenger to Starbucks across the country? Have you tried their fruit-infused iced brews or coconut milk refreshers? Share your first impressions, favorite drinks, and thoughts on this brewing rivalry in the comments below. Let’s hear how your coffee loyalty stacks up.
Luckin Coffee—known for undercutting prices and dominating China’s coffee market—has opened its first two US stores, both in New York City.
As America’s coffee landscape grows more competitive, this newcomer brings more than just caffeine to the table. Could it really change how we think about our daily brew?
Founded in 2017, Luckin Coffee rose fast by stripping coffee service down to its digital core—no cash, minimal seating, and app-only ordering.
In China, its drinks are roughly 30% cheaper than Starbucks, and its fruit-laced cold brews and vibrant coconut milk “Refreshers” have built a loyal Gen Z following.
“Luckin focuses on catering to young people, with mostly takeout booths and cashless payments,” CNN reported.
By 2019, it had more Chinese stores than Starbucks, thanks to a relentless push toward efficiency and affordability.
China’s leading coffee chain lands in the US—is your local cafe next? Image source: P. L. / Unsplash
But that meteoric growth came at a cost: in 2020, Luckin admitted to fabricating hundreds of millions in revenue, triggering a corporate meltdown.
The scandal led to the company’s delisting from Nasdaq, a $180 million SEC fine, and the firing of its top executives.
Many predicted its collapse, yet Luckin regrouped by retreating to Asia and doubling down on low-cost, high-speed service.
As of 2024, it operates over 22,000 stores in China and recently reported revenue surpassing Starbucks for the first time in that market.
Now, the company is testing American waters with two NYC locations—one in Greenwich Village near NYU and another in the popular NoMad district.
Luckin is promoting its US debut with heavy discounts and giveaways to attract younger, social-media-savvy drinkers.
“Luckin’s website and social media accounts are promoting the openings with discounts and giveaways,” according to CNN.
Its US menu mirrors the Chinese one, offering cold brews, hot coffee, matcha lattes, and colorful drinks infused with pineapple, raspberry, and coconut milk.
Starbucks still holds a commanding position in the US market, but it faces growing pressure from agile competitors like Dutch Bros and now Luckin.
The battle for Gen Z customers revolves around mobile ordering, fast service, and drinks that go viral online.
“The US restaurant business is also increasingly pushing mobile orders and loyalty programs,” CNN noted.
Luckin’s ability to deliver trendy drinks faster and cheaper could give it an edge, particularly in high-traffic urban neighborhoods.
Still, the U.S. market is notoriously difficult to break into, and customer loyalty runs deep. With more than five decades of brand equity, Starbucks won’t be easy to displace.
Independent cafés and regional chains also maintain strong followings that won’t be easily swayed by flashy marketing or fruit foam.
Whether Luckin can replicate its China playbook here depends on its ability to scale while maintaining quality, novelty, and operational efficiency.
Read next:
- Big changes coming to Starbucks—Take note before your next coffee run!
- You’re overpaying for Starbucks—Walmart’s cheaper copycat is winning over fans
