Luckin Coffee opens first U.S. stores in Manhattan, expanding its global footprint and intensifying competition in the U.S. coffee scene.
USA – Chinese coffee chain Luckin Coffee has officially launched its operations in the United States with the opening of two new stores in New York City.
The locations, situated in Manhattan’s Greenwich Village and NoMad neighborhoods, mark the company’s first physical presence in the American market.
The company, widely seen as a competitor to Starbucks, confirmed its U.S. entry on social media last week, stating, “Drip level: International. The rumors are true, NYC. You’re luckin now.” Since then, it has teased soft openings and promotional offers to attract customers.
Founded in 2017, Luckin Coffee has grown rapidly, reaching over 24,000 locations globally. The brand is already well-established in China and has expanded into Singapore, Malaysia, and Hong Kong.
Its entry into the U.S. follows a tumultuous but resilient trajectory, including recovering from an accounting fraud scandal and US$475 million in losses last year.
Despite past setbacks, Luckin’s performance has recently shown strong recovery. The company reported US$1.2 million in revenue last quarter, reflecting a 41% year-over-year increase.
Its growth is largely credited to its tech-driven, app-based business model that allows customers to browse menus and complete transactions entirely online.
All store operations are conducted in a cashier-less environment, aimed at improving efficiency and minimizing overhead costs.
The U.S. debut sets the stage for direct competition with Starbucks, which is undergoing a brand refresh under its “Back to Starbucks” campaign amid declining domestic sales.
While Starbucks holds a dominant presence with over 17,000 outlets across the United States, its position in China has weakened. In 2023, Luckin surpassed Starbucks as the leading coffee chain in the Chinese market.
Luckin boasts a strong digital user base, with more than 120 million registered app users—far exceeding Starbucks’ 34 million loyalty program members, according to recent company data.
With its New York launch, Luckin Coffee aims to tap into one of the world’s most competitive coffee markets, signaling a bold step in its global expansion strategy.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.