Luckin arrives in America: China’s largest coffee chain opens its first American locations

new York
Cnn
–

Luckin Coffee, the fast growing chain that beat Starbucks in its own game in China, enters the United States.

Its first two American locations open on Monday – in New York – marking an escalation in competition against Starbucks and other coffee channels, such as Dutch Bros., who managed to build a faithful audience to target drinkers of the Z generation with drinks worthy of Tiktok at affordable prices.

The Luckin website and social media accounts promote openings with discounts and gifts. The stores are located in Greenwich Village, near the lively campus of New York University and Nomad. Luckin did not respond to the request for CNN comments.

Luckin was founded in 2017 and focuses on the restoration of young people, with take -out stands and without cash. Its drinks in China are around 30% cheaper than those offered by Starbucks.

Bare stores generally only offer the most basic services, which has enabled the company to develop quickly at a lower cost. It also forces consumers to use mobile phones to place orders. The American catering sector is also increasingly pushing mobile orders and loyalty programs, which allow companies to collect in -depth customer data and generate more repeated visits.

Luckin’s menu is filled with usual coffee staples, including cold beers, hot coffee and matcha options. Signature items include adding fruit such as pineapple and raspberry to its frozen cafes as well as a line of bright colors that mixes coconut milk and fruity juice and cold mosses. A small selection of pastries is also on sale.

The biggest scenario may have been Luckin’s domination over Starbucks in China. The number of Luckins exceeded Starbucks in China in 2019, giving them the confidence necessary to plot an American expansion.

In 2019, the company filed a first public offer. But the company was forced to withdraw a year later after the admission that its income had been made. Luckin was then struck off from the Nasdaq, and his president and chief executive officer of the time were both dismissed. The company was also slapped with a fine of $ 180 million by the Securities and Exchange Commission.

Thus, he retired to his region of origin in Asia, where he has more than 22,000 locations in China and several dozen in Singapore.

In 2023, Luckin’s revenues in China exceeded Starbucks for the first time – an important blow for the Seattle chain which still has trouble breaking the market. Starbucks would have courted buyers for part of its Chinese activities as part of the wider recovery plans of CEO Brian Niccol, but the company has since denied that its Chinese stores were for sale.

Although Luckin’s formula has proven to be successful at home, it remains to be seen if the same thing will happen here – especially with Starbucks having more than 50 years of advance.