Chinese beverage chains redefine a coffee culture in the country – and now they are trying to beat customers in the United States and beyond.
Luckin coffee, the largest coffee chain in China, has Vigorously expanded in China Starbucks overcame the mainland, with more than twice the number of ports.
after Accounting fraud scandal This company was deleted from the Nasdaq Stock Exchange in 2020, and Lukin has organized an unbearable return with twisted flavors and highly slope discounts – up to $ 1.40 per cup during a previous price war with Cotti Coffee.
The Wall Street disaster has not weakened the Luckin aspirations in the United States, as it is still trading on the table. After the adventure in Singapore, Hong Kong and Malaysia, Luckin is scheduled to make the largest leap so far with plans to open a branch in the lower Manhattan.
This step, which has just opened outlets in Brooklyn and Manhattan. Cotti was founded in 2022 by former CEOs Lukeen who were expelled on the scandal, and also quickly grew in China and internationally, with stores in locations ranging from Southeast Asia to Dubai and California.
Cotti Coft Store next to Sheung Wan MTR station in Hong Kong, China, on Sunday, June 23, 2024.
Bloomberg Bloomberg Gety pictures
“It is possible that New York is better than the best types of tests for an international brand to expand, especially a Chinese,” said Danilo Gargiolo, the chief analyst at Bernstein, citing the diversity of the city and a large base of young consumers. “But it’s also the most saturated, one of the most competitive markets.”
Chinese chains combine budget pricing with unusual flavors that often disturb the line between coffee and bubble tea – juice to the fundamentalists, but they are very popular at home. Lukin said that Latte -full of alcohol, which was developed with the leading wine maker in China, sold more than 5.4 million cups on its first day in 2023, which led to sales of more than $ 13.7 million. The company launched 119 different elements in 2024 alone.
Luckin has built its business on technology, allowing customers in China to request and obtain deliveries through the WeChat application everywhere in the country, to replace the traditional cafe experience with excessive efficiency. The company also runs large coffee roasting and coffee processes to help reduce costs.
A cup of coffee on the table at the Luckin Store.
Zhang Ping Lightrockket | Gety pictures
The question is whether this will work in America.
Luckin and Cotti did not respond to CNBC suspension requests. In April’s profit call, the co -founder of Luckin Guo Jinyi said that the company plans to “adopt flexible and locally designed models” to expand abroad steadily. The slowdown and intense competition in China has pushed companies to search for opportunities outside their borders.
Coffee price wars
From electric car makers to food delivery platforms, Chinese companies often follow a familiar strategy: burning money, market share, worry about profit later. This helps them grow quickly, but it can cause world competitors anger.
In the last sign of increasing competition in China, Starbucks said on Monday that it would reduce the prices of dozens of drinks in the country by $ 0.70 this summer.
People sit at Starbucks Café in a shopping area on April 24, 2025 in Beijing, China.
Kevin Fryer Getty Images News | Gety pictures
In New York, Cotti sells drinks for 99 cents to customers who download their application for the first time. Over time, analysts estimate that Luckin and Cotti will be cheaper than Starbucks in the United States, but the gap will be narrower than it is in China.
Alison Malmcen, Chinese Consulting Director of Chinese Strategy, said that Manhattan may participate in the love of major Chinese cities for efficiency, but companies there are facing wages in New York and may need to accept additional payment options, adding costs. She added that the customs tariff for Chinese companies may erode the advantages of their supply chain.
“There is a long list of things that can rise the price,” said Maltten.
If the appearance of Luckin’s New York appears for the first time its success, the company can adventure elsewhere. Heytea – a Chinese chain known to photograph its tea with foam cream cheese – fell in New York in late 2023 and since then it has spread to Boston, Sayattle and Los Angeles.
Despite the tensions between Washington and Beijing, Gen Z and Younger America tend to realize China differently to the older generations, who may link Chinese products with less quality, according to the elderly. Coffee from Chinese chains can also attract increasing costs on everything from grocery stores to coffee beans.
However, cafes that work on thinner margins need size. This means attracting a wide range of customers.
“If it is seen as just a tourist or strange adventure, you will not become part of your daily consumption, you will not become part of your morning routine,” said Bernstein Gargioo.
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