Luckin Coffee About To Invade Starbucks' Home Turf – CoffeeTalk

Chinese coffee chain Luckin Coffee is planning to enter the U.S. market, with reports suggesting it plans to open its first U.S. location in 2025. The company has experienced rapid growth in China since 2017, attracted significant investment, and went public in the U.S. However, it faced scandals, including faked earnings data, executive firing, bankruptcy filing, and a decline in sales.

Luckin has since surpassed Starbucks as the largest coffee chain in China by unit count, with a more than doubled unit count between June 2023 and the end of last year. Same-store sales struggled last year due to a weak Chinese restaurant market and intense price competition, but have improved recently. The chain is also aiming for global growth, opening 51 shops in Singapore and opening its first two locations in Malaysia in January.

Executives have announced their target for overseas expansion, adopting flexible operational models to build their overseas experience while continuously exploring new market opportunities. They have also increased their supply of coffee beans. Luckin would enter a highly competitive and habitual U.S. coffee market, where consumers consume coffee less often, which could provide growth in the future.

The U.S. is filled with coffee competitors, including Starbucks, Dunkin’ Donuts, Dutch Bros, Scooters, 7 Brew, McDonald’s, Wendy’s, and convenience store chains like 7-Eleven. Luckin plans to undercut prices by pricing its beverages from $2 to $3.

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