China's Favorite Coffee Chain Arrives in US

China's fast-growing Luckin Coffee has landed stateside, challenging Starbucks on its home turf with trendy drinks and tech-driven service. China's top coffee chain opened its first two US locations Monday, both in New York City, CNN reports. The move brings new competition to established brands like Starbucks and Dutch Bros., particularly in the battle for Gen Z customers who are drawn to social-media-friendly drinks and lower prices.

Luckin, founded in 2017, has built its brand in China by focusing on younger customers, operating mostly as takeout counters with cashless, mobile-only ordering. Its prices in China run about 30% lower than Starbucks, and its stripped-down stores help the company expand quickly and efficiently, reaching 22,000 outlets across Asia. Luckin surpassed Starbucks with its China store count in 2019, though its momentum was checked by an accounting scandal that led to a $180 million SEC fine, delisting from Nasdaq, and a change in leadership.

The US coffee market is also shifting toward mobile ordering and loyalty programs, terrain Luckin knows well. The new stores, located near New York University and in Madison Square North, are promoting their arrival with discounts and giveaways. The menu features coffee staples as well as fruit-infused iced coffees and colorful "Refreshers." There are also a few pastry offerings.