Does Luckin's Meteoric Rise Spell The End Of Starbucks' Supremacy? – CoffeeTalk

Luckin, a Chinese coffee chain founded in 2017, has overtaken Starbucks as China’s largest coffee chain in 2023. The company, which started in China, offers a frictionless technological experience with an app-based ordering system and no cashiers. Luckin has recently opened two outlets in New York City, on Starbucks’ doorstep, aiming for global domination.

However, Starbucks is known for its caramel macchiato, pumpkin spice latte, and bestsellers like the coconut latte, velvet latte, and apple fizzy americano. To counter Luckin’s threat, Starbucks is closing stores and focusing on community coffee houses and a more personal customer experience. They are also refurbishing existing locations and reintroducing human interaction to their coffee.

Luckin is also engaging in promotional discounting, selling $1.99 coffees in a city where a $6 cappuccino is not uncommon. While Starbucks is facing a decline, Luckin reported $4.7bn in sales last year, compared to $36.2bn net revenue for the company. However, the Chinese upstart’s remarkable rise was made even more remarkable after a 2020 false accounting scandal caused its stock price to collapse, driving the company into bankruptcy in the US.

Luckin emerged from bankruptcy in 2022, replacing its top brass and receiving significant cash injections from a private equity firm. It is important to remember that Starbucks is home to popular coffee brands like caramel macchiatos, pumpkin spice latte, and apple fizzy americano, but Luckin’s approach to coffee may be the end of Starbucks’ supremacy.

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