There was a time in the early 2000s when Starbucks ruled coffee culture. A $2 cup told the world you were living modern, moving fast and sipping with status. Starbucks expanded quickly in China, too, appealing to a youthful, urban market that was embracing the same surge in takeaway coffee seen across the U.S. For years, it stood out as one of the most visible and prominent U.S. brands across the nation.
But then Luckin emerged in China in 2017—a bold, tech-powered challenger founded by Chinese entrepreneurs who saw an opportunity to disrupt the coffee market. With aggressive pricing and a focus on app-based ordering, Luckin quickly aimed to topple Starbucks’ long-standing grip in cities like Beijing and Shanghai. The company debuted its first stores in major capitals back in January 2018. Just a year later, it had already opened more than 2,000 stores.
After overtaking Starbucks in China, Luckin sets its sights on the U.S. market
The masterminds behind Luckin believe that by undercutting Starbucks on price and simplifying the ordering process to just a tap, busy commuters can conveniently order their coffee on the go and pick it up far quicker than before. Luckin tapped into a timeless consumer truth: Offer lower prices and reliable service, and people will follow. Just as Uber replaced the old taxi model with something faster and smarter, Luckin stepped in to replace Starbucks’ slower store-based approach with tech-first convenience.
This was a serious threat to Starbucks in China. Since its early days, Starbucks has counted on China as one of its largest international markets. Outside the U.S., more people still drink Starbucks in China than anywhere else in the world.
Luckin has been relentless in its store expansion initiatives, and in China, it’s now common to grab a drink for $3 or less, thanks to constant discounts and app credits. Stores are purpose-built with smart use of space to minimize maintenance costs and prioritize efficient preparation. While Luckin’s base prices are similar to other outlets, its core strategy is built around frequent discounts and promotions, which most customers use to explore and get hooked on the full menu. This approach helps drive trial and builds loyalty without harming the consumer’s budget too much.
In 2023, the coffee brand officially overtook Starbucks to become the largest coffee chain in China. In 2025, it has become even more dominant: Most storefronts now operate without employees, with ordering, tracking and customer interaction handled entirely virtually or by robots. It’s a strange evolution for a cultural ritual once rooted in social interaction and community—but one that’s nevertheless finding growing favor overseas.
No waiting, just coffee: Luckin’s tech-savvy solution for your morning fix
This month, the brand launched an aggressive expansion in the U.S.—its first venture into the Western Hemisphere—with a clear goal: to challenge Starbucks on its home turf. On June 30, Luckin Coffee opened its first two U.S. stores in Manhattan, at 755 Broadway and 800 6th Avenue, offering $1.99 drinks through its app. The menu includes signature beverages, raspberry and pineapple cold brew and baked goods like bagels, cookies and chocolate cake. In the days leading up to the launch, Luckin set up pop-ups across New York City, inviting passersby and tourists to download the app in exchange for a free drink.
Luckin’s entire operation is powered by online data, analyzing what drinks and food customers buy repeatedly, what they avoid and their order volumes. This wealth of information drives their strategy and deepens their understanding of consumers. With its growing focus on AI and convenience, Luckin expects global customers to recognize its value and choose them for quicker, more affordable service.
Because everything is online, Luckin tailors your coffee experience to your preferences. Your favorite drinks and regular orders are the ones they reward with discounts and credits. Through the Luckin app, you can easily browse past purchases, explore new menu items and track your order status with minimal hassle.
Luckin arrives in the U.S. to offer a more affordable and streamlined coffee on-the-go experience
Luckin’s arrival in the U.S. coincides with growing consumer demand for more affordable coffee. Starbucks often charges twice as much as independent cafés in major cities and has focused more on cultural and customer experience enhancements than on lowering prices to attract new buyers. Luckin sees a clear opening here: Customers tired of $6 drinks and complicated orders are looking for a simpler, faster coffee experience.
The Chinese coffee chain has targeted prime locations in New York that attract diverse crowds. It’s choosing high-traffic, tourist-heavy spots where media attention is guaranteed. With thousands of first-time customers sampling the brand, Luckin will be closely monitoring the numbers to determine if a nationwide rollout is feasible. This would require convincing both rural and urban communities that it can outpace competitors like Dunkin’, Starbucks and others.
Luckin has the opportunity to challenge Starbucks on both price and convenience
Younger Gen Z consumers are shifting their priorities away from the ritualistic coffee culture of past generations toward a sharper focus on cost and convenience. Luckin is uniquely positioned to capitalize on this shift, challenging Starbucks not just on price but also with a seamless, tech-driven customer experience. This moment is just as crucial in the U.S. as it has been in China, where the company is majority owned by Chinese investment and supports local farmers.
Small price cuts can win loyal customers—just look at what Luckin did in China. But to stick around for the long haul, Luckin needs to nail the mix of low prices and a customer experience that feels smooth and welcoming, not cold or robotic. The real question is whether Luckin is poised for lasting success or simply making a brief splash. With its cutting-edge technology and aggressive strategy, however, Luckin is equipped not just to compete with giants like Starbucks but to redefine the coffee game entirely.
Photo by Imaginechina Limited/Alamy
