Chinese Starbucks competitor opens first stores in the US

The two new stores are both located in New York City

Luckin Coffee, the largest coffee chain in China, is officially open in the U.S., giving Starbucks a run for its money.

In China, Starbucks’ second-largest market after the U.S., competition is fierce, with consumers increasingly cautious about their spending. Starbucks faces significant challenges from domestic rivals like Luckin Coffee, which attracts customers with cashier-less stores and drinks priced as low as 8.8 to 9.9 yuan ($1.23 to $1.38).

Now, Luckin Coffee is expanding in America, with two stores opening in New York City, specifically Manhattan. To celebrate the stores’ openings on Monday, the brand had some special deals, including free tote bags for the first 100 customers, according to the brand’s Instagram page.

Although Luckin Coffee’s opening day in the U.S. has ended, New Yorkers can expect a special treat at the two stores: $1.99 drinks. To redeem the deal on your first drink, you have to download the Luckin Coffee app and order your beverage on there.

Similar to Starbucks, Luckin Coffee offers a wide range of beverages on top of hot or iced coffee, including refreshers, matcha, frappes, and signature lattes. The brand also sells cold brew in different flavors, like blood orange, coconut, raspberry, and pineapple.

Luckin Coffee opens its first stores in the US on Monday (Getty/iStock)

Since its founding in 2017, Luckin Coffee has become one of the fastest-growing coffee chains in China, with more than 22,000 outlets. It also has stores in Singapore.

In China, the chain’s mobile app enables stores to operate without cashiers, allowing customers to pay online and pick up their drinks. However, this isn’t the case in the new Manhattan locations as cashless businesses have been prohibited in New York City since 2020.

According to its website, Luckin Coffee advocates for “a more convenient and rapid ‘new retail’ experience.” By having customers pick up and take out coffee through the mobile app, the brand is “completely changing the traditional coffee business mode,” it says.

Luckin says its coffee beans “come directly from top coffee producing regions,” and the coffee is “selected from more than 180 blending formulas that highly match the taste of customers.”

Earlier this month, Starbucks engaged in the latest war of low coffee prices in China. The brand said in a post on its Weixin social media account that it would offer more “accessible” prices on dozens of its drinks, including non-coffee drinks and the Frappuccino. Some drinks will be priced as low as 23 yuan ($3.21).

In the U.S., Starbucks recently announced some changes to its menu for the summer. New Frappuccinos hitting stores in July include the Salted Caramel Mocha, Strawberry Matcha, and Brown Sugar varieties, each topped with a layer of cold foam.