Watch Out, Starbucks: China's Luckin Are Now In The US

Luckin Coffee, the fast-growing chain that beat Starbucks at their own game in China, has entered the United States. 

Their first two US locations open today – both in New York City – marking an escalation in competition against Starbucks and other coffee chains, such as Dutch Bros, that have successfully built a loyal following in targeting Gen Z drinkers with TikTok-worthy drinks at affordable prices. 

Luckin’s menu is filled with usual coffeehouse staples, including cold brews, hot coffee and matcha options. Signature items include adding fruit like pineapple and raspberry to their iced coffees as well as a line of brightly colored “Refreshers” that mixes coconut milk and fruity juices and cold foams. A small selection of pastries are also on sale. 

Perhaps the biggest storyline has been Luckin’s dominance over Starbucks in China. The number of Luckins overtook Starbucks in China in 2019, giving them the confidence to plot a US expansion. 

In 2023, Luckin’s revenue in China surpassed Starbucks for the first time – a significant blow for the Seattle, US-based chain that is still struggling to crack the market. Starbucks were reportedly courting buyers for a portion of their China business as part of CEO Brian Niccol’s broader turnaround plans, but the company have since denied their Chinese stores are for sale. 

Although Luckin’s formula has proven to be successful at home, it remains to be seen if the same will happen here – especially with Starbucks having more than a 50-year headstart.