Chinese coffee brand Luckin Coffee is making its way to Starbucks' home market—the US.
In 2023, Luckin's annual net revenue surpassed RMB 20 billion for the first time, overtaking Starbucks to become the largest coffee chain in China.
After outperforming Starbucks in the Chinese market, Luckin is now venturing into the US market. This June, the company opened its first two stores in New York City, and that number has since grown to five.
When it comes to the menu, Luckin offers a mix of American classics like black coffee and lattes, alongside its bestsellers from China, such as the popular Coconut Latte.
And here's the kicker: a Coconut Latte costs just US$1.99, with most drinks priced around 20% lower than Starbucks.
While Starbucks has long focused on creating a "third space"—a cozy environment for people to gather—Luckin prioritizes convenience.
Its US stores operate cashier-free, requiring customers to place orders through its APP and pick them up without interacting with baristas.
American media outlets have noted that this operational model allows Luckin to expand quickly and at a lower cost. However, some local customers have expressed frustration, saying they prefer the traditional experience of ordering directly from a cashier.
Will Luckin's US expansion be a hit or miss? Time will tell.
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