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MILAN – Luckin Coffee is coming to the United States. On Monday, the company opened its first two locations in the U.S., in New York City, at 755 Broadway in Greenwich Village and 800 6th Ave in Chelsea. The news comes directly from Luckin’s Instagram profile, which already has 2,000 followers. In a post, the company announces the imminent openings, which will be accompanied by discounts and promotions.
This is a significant comeback for the Chinese chain, which was delisted from the NASDAQ in June 2020, following a major accounting scandal.
Having overcome a difficult period of crisis exacerbated by restrictions due to the pandemic, the chain has restarted its growth trajectory, imposing itself strongly on the Chinese market, thanks to an efficient business model based on its app (boasting 120 million registered users), cashless payments, and customer loyalty programmes.
As early as 2029, the number of Luckins had overtaken Starbucks in China. In 2023, Luckin also overtook Starbucks in terms of revenue. Luckin currently has over 24,000 outlets.
Over the past two years, the brand has also been expanding into Singapore and Malaysia. In the last quarter, Luckin generated revenues of USD 1.2 billion, marking a 41% year-on-year increase.
In the U.S. market, Luckin Coffee has announced prices lower than those of its competitors, ranging between $2 and $3, but a quick look at the app reveals prices that are more or less in line with those of Starbucks.
According to CBS, Luckin’s entrée into the U.S. coffee market is a direct challenge to Starbucks, which is in the midst of revamping its brand image through the “Back to Starbucks” campaign as it struggles against declining sales and revenue.
Many are wondering, however, whether the Luckin model will work in the US. Some argue that the chain may mainly target Chinese expats. And that it will therefore remain a niche reality without the pretension of undermining the dominance of the American giants – starting with Starbucks and Luckin – which boast historical roots in the American market.
