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Starbucks Battles New Challenger With Luckin Coffee's US Entry in NYC

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Starbucks Battles New Challenger With Luckin Coffee’s US Entry in
A logo of Luckin Coffee is seen at a store in Beijing on January 4, 2019. - After only a year in business, startup Luckin Coffee said on January 3 it will open 2,500 stores this year to dislodge Starbucks and become China's largest coffee chain.

Chinese coffee giant Luckin Coffee has officially stepped into US territory, opening its first two American stores in New York City on Monday, aiming to take on coffee powerhouse Starbucks in its home market.

The two new Luckin locations — one in Greenwich Village at 755 Broadway and another in Chelsea at 800 6th Avenue — are part of the brand's strategy to grow beyond Asia.

The stores began operations with soft openings and promotional offers, including 99-cent drinks and free tote bags for early visitors.

Founded in 2017 in Xiamen, China, Luckin has already made waves across Asia with its fast-paced expansion and app-driven model.

According to AP News, the company now operates over 24,000 stores in China and neighboring regions such as Singapore and Malaysia.

Its quick growth even allowed it to surpass Starbucks in the number of storefronts in China by 2019.

Now, Luckin is testing if the same tech-first model will work in the US Customers at the NYC stores must order and pay via the Luckin app — creating a cashier-less, mobile-first coffee experience. The system, inspired by ride-hailing apps, is designed to keep costs low and service fast.

"We're luckin now," the company posted on Instagram last week, teasing its arrival and catching attention with its sleek branding and youthful appeal.

Luckin Offers $3.45 Coffee, Undercuts Starbucks by Cents

Despite past financial scandals — including a $180 million fine by the US Securities and Exchange Commission for accounting fraud in 2020 — Luckin has rebounded, NYPost said.

It continues to grow its market share and revenue, most recently reporting a 41% year-over-year jump.

The menu at Luckin's US locations includes drip coffee, matcha lattes, and fruity espresso drinks, along with small pastries like banana yogurt loaves and sausage, egg and cheese croissants.

Prices are close to those at Starbucks. A 16-ounce drip coffee at Luckin sells for $3.45, just 20 cents less than the same item at Starbucks.

With over 120 million app users worldwide, Luckin holds a massive digital customer base, far surpassing Starbucks' 34 million members.

Starbucks, facing slower sales in the US and recent rumors about its China business, may feel the heat as Luckin makes its move west.

Still, with over 17,000 locations across the US, Starbucks maintains a strong lead — for now.

Originally published on vcpost.com

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