Luckin Coffee, one of China’s most prominent coffee chains, has officially entered the US market, opening its first two American locations in New York City on Monday, CNN reports.
The move marks a significant development in the company’s global ambitions and introduces a new competitor to established brands like Starbucks and Dutch Bros.
The two stores are located in Greenwich Village, near New York University, and NoMad, both high-footfall areas frequented by young consumers—one of Luckin’s primary target demographics. The openings are being promoted with discounts and giveaways across the company’s website and social media platforms.
Founded in 2017, Luckin Coffee built its brand on affordability, convenience, and digital ordering. In China, it overtook Starbucks in store count by 2019 and now operates over 22,000 locations domestically. Its business model relies heavily on takeout booths, cashless transactions, and mobile ordering, which have kept costs low and enabled rapid expansion.
Luckin appeals primarily to younger consumers with its streamlined experience and vibrant product offerings. Its US menu includes familiar staples like cold brews and matcha, but also highlights distinctive drinks such as iced coffees infused with fruit flavors (e.g., pineapple, raspberry) and colorful coconut milk-based “Refreshers.” A limited selection of pastries complements the beverage-focused menu.
This approach places it in direct competition with brands that have cultivated loyalty among Gen Z consumers through social media, especially platforms like TikTok, where eye-catching drinks are a key part of branding.
Luckin’s success in China is often attributed to its ability to undercut Starbucks on price—offering drinks at approximately 30% lower cost—and its digitally integrated ordering system. In 2023, the company’s revenue in China surpassed that of Starbucks for the first time, a major milestone that has helped fuel its international ambitions.
However, Luckin’s path hasn’t been without setbacks. The company faced a major scandal in 2020 when it admitted to fabricating hundreds of millions of dollars in sales. This led to the termination of top executives, a $180 million fine from the US Securities and Exchange Commission, and the company’s delisting from the Nasdaq.
Following a restructuring and renewed focus on its Asian operations, Luckin regained stability. In addition to its vast presence in China, the company now operates stores in Singapore, signaling its intent to expand cautiously but globally.
Despite its rapid rise abroad, Luckin enters a highly competitive and mature US coffee market where Starbucks holds a dominant position built over more than five decades. Other regional players like Dutch Bros. and Peet’s Coffee, as well as an increasing number of boutique and specialty coffee shops, present further competition.
