Luckin Coffee Opens First Stores in U.S. Expansion

Luckin Coffee, China's largest coffee chain, has opened its first U.S. stores in Manhattan, New York City, as part of a significant expansion into the American market. The company has rapidly grown to over 22,000 locations across Asia, despite a 2020 accounting scandal and delisting from Nasdaq. Luckin is known for its 100% cashier-less, tech-driven stores and offers beverages at prices approximately 30% lower than Starbucks in China. The chain targets younger consumers with a menu featuring traditional coffee and fruit-infused drinks, and is launching in the U.S. with aggressive promotions like giveaways and discounted drinks. While Luckin has rebounded in China, doubling its locations and surpassing Starbucks in sales, it is uncertain if its low-cost, app-based model will succeed in the competitive U.S. coffee market as Starbucks pursues its own turnaround efforts. This expansion sets the stage for intensified competition between Luckin and Starbucks on American soil.