China is not only eating the West in electric cars or televisions. It also threatens Starbucks
New York is so damn big that it would be logical that the news of the opening of two coffee shops would pass unnoticed. After all, the city that never sleeps is full of places where one can taste (or pick up) a lattecappuccino, macchiato or any other coffee variation that comes to mind. The opening of the first two Luckin Coffee stores a few months ago in the Big Apple was however sneaked into media such as CNN either The New York Times and has inspired analysis of all kinds out of the country. Logical. After all, in just a few years Luckin Coffee has achieved bend your pulse to Starbucks in China. Now, for his landing in New York, he has chosen a place located barely 60 meters from one of their cafes. What is Luckin Coffee? If its name doesn’t sound familiar to you, don’t worry, it’s more than understandable: Luckin is a coffee shop chain founded in 2017 in China by Jenny Qian and Charles Lu and since then its expansion has focused mainly on the Asian giant. In 2023 he achieved a key milestone by surpassing Starbucks as the largest coffee brand in China and in recent years it has not stopped growing: from close to 16,200 stores that it had that year in China (more than double that of its American rival) has gone on to manage more than 20,000 in several countries. In July the company spoke of 24,097 points of sale spread across mainland China, Hong Kong, Singapore and Malaysia. During the first quarter of 2025 alone, it launched 1,757. After taking over the Chinese market, a few months ago the company announced his landing in America with two stores in Manhattan and Washington Square Park, an area popular with students. “This is just the beginning. New York, we are here,” warned Luckin in networks. Is it that important? The landing of Luckin Coffee in the US market has generated expectation inside and outside the country. Normal. Your surprise Starbucks in China in 2023 (both in sales and number of stores) had a symbolic value that goes far beyond the numbers. To begin with, because the Asian giant is one of the big markets of the American multinational. Starbucks has also been established in the country for some time: it opened its first establishment in Beijing in 1999, contributing greatly to establish coffee culture in a nation that has traditionally opted for tea. That’s why Luckin’s jump to the US has generated so much interest. How has it succeeded? With a bet well defined. At least until now, Luckin Coffee’s strategy has been based on three pillars. First, a dizzying expansion focused on gaining market share. Second, the user experience. Customers manage their orders directly through an app and in just a few minutes they can collect their orders at the counter, without any human interaction. The mobile application is not only dynamic; It allows the company to retain its customers by using discounts, bonuses and gamification. The third bet is a wide offer and, above all, affordable prices. During its landing in the US, the Chinese chain has decided to launch aggressive discounts that leave its coffees in less than two dollars, considerably below of what Starbucks charges for its drinks in the Big Apple. In fact there is who points that the American multinational’s strategy to stand up to its Chinese rival will be to move in the opposite direction: if Luckin focuses on app orders and low prices, Starbucks has proposed eliminate the premises of their network that only accept orders via app and for pickup due to their low “warmth”. The idea: return to the origin, to the traditional cafeteria experience. Does it only happen with Luckin? No. In fact Luckin is just one of many Chinese tea chains, hot potsdrinks… that are landing in the US to compensate for the changes in the Chinese market. How he slid TNWT in a recent analysis On the subject, there they find an excess of supply and an economy weighed down by the real estate crisis and weakened consumption, which leads them to look to the other side of the Pacific. One of the threats that its US competitors face is that this leap comes with aggressive tariffs. Gaining a foothold in the US market will not be easy. The Luckin case is a clear example. It has just opened its first stores in New York, but in front of it it has almost 17,000 establishments that Starbucks manages in the US. If the Chinese chain has demonstrated something, however, it is its resistance. In fact, it has managed to overcome the serious crisis it experienced in 2020, when an accounting scandal left it on the edge of the abyss. Since then it has not only managed to recover and grow. Now aspire to quote again in the USA. Images | Xataka In Xataka | China has just beaten the United States in the most unexpected fight: that of branded coffee shops
