Starbucks: China’s biggest coffee chain opens its first US locations

Luckin Coffee Expands to the U.S., Taking on Starbucks on Its Home Turf

New York (CNN) – Luckin Coffee, the Chinese coffee giant known for outpacing Starbucks in its home market, is officially entering the U.S. market. The company opened its first two U.S. stores on Monday, both located in New York City — one in Greenwich Village near NYU and the other in NoMad.

These openings mark a bold step in Luckin’s global ambitions and bring fresh competition to established players like Starbucks and Dutch Bros., especially among Gen Z consumers who favor trendy, affordable drinks.

About Luckin Coffee

Founded in 2017, Luckin quickly grew in popularity across China with its digital-first model. The brand emphasizes mobile ordering, cashless payments, and minimal in-store services — enabling rapid expansion while keeping operational costs low. Its drinks are typically 30% cheaper than Starbucks’, appealing strongly to price-conscious young consumers.

Luckin’s U.S. debut is being promoted through discounts and giveaways on its website and social media. The brand’s menu features standard coffeehouse offerings, but also includes unique items like iced coffees with fruit infusions (e.g., pineapple or raspberry) and vibrant “Refreshers” made with coconut milk, fruit juices, and cold foam. A limited selection of pastries is also available.

From Scandal to Comeback

Luckin surpassed Starbucks in number of stores in China as early as 2019. However, its rapid rise was disrupted by a major accounting scandal in 2020, leading to its delisting from Nasdaq and a $180 million penalty from the U.S. SEC. The company’s CEO and chairman were dismissed.

Despite this setback, Luckin rebounded by refocusing on the Chinese and Southeast Asian markets. Today, it boasts over 22,000 locations in China and continues to expand in Singapore.

In a major milestone, Luckin’s 2023 revenue in China surpassed that of Starbucks — a symbolic blow to the Seattle-based brand, which continues to face challenges in the Chinese market.

A New Challenge Ahead

Luckin’s model has proven successful in Asia, but its U.S. expansion presents a new test. Starbucks, with more than 50 years of brand equity in America, won’t be an easy rival to dethrone. However, Luckin’s innovative approach, competitive pricing, and appeal to mobile-savvy customers could disrupt the market if adapted effectively to American consumer behavior.

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