Luckin Coffee Plans U.S. Market Expansion

Luckin Coffee, after surviving a major fraud scandal that resulted in its delisting from Nasdaq, is planning to expand into the U.S. market with low-cost beverages priced between $2 and $3, targeting cities with large Chinese populations like New York. The company reported a remarkable turnaround, achieving annual revenues of 24.9 billion yuan ($3.48 billion) in 2023, surpassing Starbucks' revenue in China for the first time, despite Starbucks having fewer outlets. Luckin has been building its brand through strategic marketing efforts, including partnerships and advertising during NBA games. The coffee chain aims to leverage its successful experience in China to challenge U.S. competitors, amidst Starbucks facing challenges in the Chinese market and declining sales in the U.S. market. Analysts note Luckin Coffee as a significant turnaround story in Chinese business history, as it prepares for a potential launch in the U.S. as early as next year.