China’s Luckin Coffee opens first two US stores in New York

Luckin Coffee, the Chinese chain that overtook Starbucks back in its home market, is turning up the heat with the opening of its first US locations in New York on June 30. 

The move to open two New York locations drums up competition between China’s biggest coffee chain and Starbucks, which is struggling with declining US sales.

In China, the Seattle-based company’s business has been undercut by lower-priced home-grown rivals such as Luckin.

Starbucks declined to comment. Luckin did not reply to a request for comment.

Luckin’s new location at 800 6th Avenue was filled with customers on June 30, many of them enjoying a US$1.99 (S$2.50) drink deal off the chain’s app. 

The company recently teased its store openings in New York, hosting a pop-up shop for taste tests and free prizes. Its US Instagram account has more than 2,000 followers. 

Luckin expanded rapidly in China before being delisted from the Nasdaq stock exchange in 2020 due to an accounting scandal.  

After shifting leadership, the chain surpassed Starbucks to become China’s biggest coffee retailer in 2023. It now has more than 24,000 stores globally and is looking to expand.

Starbucks has lost ground in China

since the Covid-19 pandemic. The company has also sought to bulk up staffing in the US in a push to revive sales, in part by speeding up service.

Luckin’s app offers online ordering and in-store pickup, like Starbucks, and also includes a point system for earnings discounts and potentially winning free coffee for a year. BLOOMBERG