Luckin Coffee Inc, the Chinese coffee chain that overtook Starbucks in its home market, has officially launched its first United States locations in New York City. The openings, which took place on Monday, mark a bold step in the company’s global expansion strategy as it intensifies competition with Starbucks Corp, particularly as the latter faces weakening domestic sales.
The two New York outlets signal Luckin’s intent to broaden its international footprint beyond Asia. Its inaugural US store, located at 800 6th Avenue, drew considerable footfall on launch day, with customers taking advantage of a US$1.99 drink promotion available via the company’s mobile app.
In the run-up to its New York debut, Luckin built anticipation by hosting a pop-up event offering product tastings and giveaways. Its US-facing Instagram account has already garnered over 2,000 followers, underscoring the brand’s efforts to cultivate a local customer base through targeted digital engagement.
The brand’s re-emergence on the global stage comes after a turbulent period. Following a high-profile accounting scandal, Luckin was delisted from the Nasdaq in 2020. However, under new leadership and an aggressive store rollout strategy, it rebounded to become China’s largest coffee chain by store count in 2023, surpassing Starbucks. Luckin currently operates more than 24,000 locations globally.
Meanwhile, Starbucks has struggled to regain momentum in the post-pandemic Chinese market, where price-sensitive consumers have increasingly turned to domestic alternatives like Luckin. In response, the Seattle-based giant has ramped up hiring efforts in the US to speed up service and bolster in-store performance, though the brand declined to comment on Luckin’s US entry.
Luckin’s digital ecosystem mirrors that of Starbucks, featuring mobile ordering, in-store pickup, and a loyalty programme offering discount incentives and the chance to win a year of free coffee.
-Bloomberg
