NEW YORK (BLOOMBERG) -- Luckin Coffee Inc., the Chinese chain that overtook Starbucks back in its home market, is turning up the heat with the opening of its first US locations in New York on Monday.
The move to open two New York locations brings stateside a growing competition between the Chinese chain and Starbucks Corp., which is struggling with declining US sales. In China, the Seattle-based company’s business has been undercut by lower-priced homegrown rivals such as Luckin.
Starbucks declined to comment. Luckin didn’t reply to a request for comment.
Luckin’s new location at 800 6th Ave. was filled with customers Monday, many of them enjoying a $1.99 drink deal off of the Luckin app.
Luckin recently teased its store openings in New York, hosting a pop-up shop for taste tests and free prizes. The company’s US Instagram account has more than 2,000 followers.
Luckin expanded rapidly in China before being delisted from the Nasdaq stock exchange in 2020 due to an accounting scandal. After shifting leadership, the chain surpassed Starbucks to become China’s biggest coffee retailer in 2023. Now, it has more than 24,000 stores globally and is looking to expand.
Starbucks has lost ground in China post-Covid. The company has also sought to bulk up staffing in the US in a push revive sales in part by speeding up service.
Luckin’s app offers online ordering and in-store pickup, like Starbucks, and also includes a point system for earnings discounts and potentially winning free coffee for a year.