China's Answer to Starbucks Launches First Stores in US

Newsweek

01-07-2025

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China's largest coffee chain, Luckin Coffee, opened its first two stores in the United States on Monday, marking its entry into the competitive American coffee market.
The new locations are situated in Manhattan's Greenwich Village and NoMad neighborhood. The launch was accompanied by digital promotions, as well as discounted drinks for customers using the Luckin app and giveaways for early in-store visitors.
Newsweek has reached out to Luckin via email for comment on the launch.
Why It Matters
Much of the hype surrounding Luckin's American launch has focused on the potential challenge the Chinese company poses to Starbucks.
The latter has long-dominated the U.S. coffee market, valued at over $90 billion in 2025 by Custom Market Insights, and expected to grow to $151 billion over the next decade. Starbucks' is estimated to account for between 30 and 40 percent of this market's total revenue, but should Luckin's popularity take off, and its unique offerings resonate with U.S. consumers, this could recalibrate competitive dynamics across the American beverage sector.
Newsweek has reached out to Starbucks for comment outside of regular business hours.
What To Know
Luckin Coffee was founded in 2017 and is based in Xiamen, China. Since its inception, the company has expanded to over 20,000 locations across Singapore, Malaysia and China, where it unseated Starbucks in 2023 to become the largest coffee chain brand in the country.
The company promotes its tech-driven, cashier-less stores and mobile-ordering systems to cater to a younger clientele, describing its strategy as "completely changing the traditional coffee business mode." In China, its drinks are often priced about 30 percent lower than Starbucks' offerings, per CNN. However, prices in its U.S. stores remain comparable to Starbucks—a 16-ounce Americano costing $4.45 at Luckin and $4.95 at Starbucks' Greenwich Village location before tax. The rest of Luckin's Manhattan menus feature a range of hot coffees, cold brews and fruit-flavored "refreshers," echoing its popular selections in China.
People stand outside a Luckin Coffee store in Manhattan, New York on June 30, 2025.
People stand outside a Luckin Coffee store in Manhattan, New York on June 30, 2025.
Anthony Behar/Sipa via AP Images
While one of the brand's unique selling points is its emphasis on a cashier-less experience, USA Today notes New York's 2020 prohibition on fully cashless businesses—also in place across other major cities like San Francisco and Philadelphia—means Luckin will be forced to adapt to local regulations.
While its modest U.S. launch has been framed by some as a challenge to Starbucks's American and global dominance, the former still vastly outsizes Luckin in financial terms. Both companies recently published results for their respective quarters which ended in March. Starbucks posted a slight increase in revenue to $8.8 billion for the period, though store sales were somewhat weaker across North American markets and globally. Luckin, meanwhile, brought in $1.2 billion, marking a 41-percent increase year-over year.
What People Are Saying
Luckin Coffee, in the first announcement of its U.S. launch last week, posted: "Drip level: International. The rumors are true, NYC. You're luckin now."
"YC, it's happening. Our doors are open and Luckin Coffee is taking over the city," another post read.
What Happens Next?
Luckin has not yet commented on when and how it will be expanding its U.S. presence beyond the two New York locations. However, if it is able to replicate its successes in East Asia, the company could test Starbucks' dominance and reshape the coffee landscape for American consumers.