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Chinese drinks in the country rethink the culture of coffee culture – and now they are trying to defeat customers within the US and abroad.
Luckin Coffee, the largest coffee in China expanded aggressively in China and the wreaths of Starbucks on the mainland, with more than twice as many outlets.
After Scandal from accounting This received a company from Nasdaq in 2020, Luckin arranged a unlikely return with intricate flavors and steep discounts – up to $ 1.40 per cup during the previous price war with a competitive Coffee.
The Debal on Wall -Story did not reduce Lukin’s ambition in the US, where he is still trading behind the counter. Having went to Singapore, Hong Kong and Malaysia, Lukin intends to make his biggest leap, but plans to open a branch on the lower Manhattan.
This step reflects a cat that has just opened outlets in Brooklyn and Manhattan. Founded in 2022, former Luckin executives, who were dismissed from the scandal, the cat also rapidly grew in China and internationally, with shops to places, ranging from Southeast Asia to Dubai and California.
On Sunday, June 23, 2024, in Kutsa -Kora -shop near the Shan -van MTR station in Hong Kong, China.
Bloomberg | Bloomberg | Gets the image
“New York is probably culturally the best platform for the international brand, especially Chinese,” said senior analyst Bernstein Danilo Gargila, citing the city’s variety and a large base of young consumers. “But it is also the most rich, one of the most competitive markets.”
Chinese chains combine budget prices with unusual flavors that often blur the border between coffee and bubbles – cleaning to purists, but very popular at home. Lukin said that on the first day in the first day in 2023, alcohol was developed, developed with the leading Chinese Moutai liqueur manufacturer, sold more than 5.4 million cups on the first day, bringing more than $ 13.7 million. The company launched 119 different subjects only in 2024.
Luckin has created its business around technology, which allowed customers in China to order and get deliveries through the widespread WeChat app in the country, replacing the traditional cafe through efficiency. The company also manages large frying and processing cafe in China to help reduce costs.
Two cups of coffee on the table in the Luckin cafe.
Zhang Peng | LightRockket | Gets the image
The question is whether it will work in America.
Lukin and Kots did not respond to the CNBC comment requests. According to the income call in April co -founder Luckin Guo Jinyi said the company plans to “take flexible, local models” to expand abroad steadily. Slowing growth and intensive competition in China has pushed companies to look for opportunities outside its borders.
The cost of coffee war
From electric vehicles to food delivery platforms, large -scale Chinese companies often adhere to a familiar strategy: burn cash, seize market share, worry about profit later. It helps them grow rapidly, but can angry global competitors.
In the last sign of increased competition in China, Starbucks said Monday said it would reduce the prices of dozens of drinks in the country an average of $ 0.70 this summer.
People are sitting in a Starbucks cafe in the trading area on April 24, 2025 in Beijing, China.
Kevin Freyer | Getty Images | Gets the image
In New York, Kohi sells drinks for 99 cents for customers who first load his app. Over time, analysts believe that Luckin and Cotti will still be cheaper than Starbucks in the US, but the gap will be narrower than in China.
Manhattan can share the love of major Chinese cities for efficiency, but businesses there face New York wages and may need to accept additional payment options, adding expenses, said Alison Malmesten, Chinese Director at Daxue Consulting. Chinese business tariffs can further destroy their benefits, she added.
“There is a long list of things that can potentially increase the price,” Malmesten said.
If the debut in New York Luckin is successful, the company may risk further. Heyte – the Chinese network, known for the fact that it has a foamy cheese – landed in New York at the end of 2023 and has since spread to Boston, Seattle and Los -Angeles.
Despite the tensions between Washington and Beijing, General Z and young Americans tend to perceive China for old generations that can bind Chinese products with lower quality, Malmesten believes. Coffee from Chinese networks can also resort to New York, who are facing the cost of everything, from grocery products to coffee beans.
However, cafes that work at a thinner stock require volume, analysts say. This means attractive to a wider range of customers.
“If this is perceived as soon as a tourist or exotic adventure, it will not become part of your daily consumption, it will not become part of your morning routine,” said Gargilad Bernstein.
