China’s Biggest Coffee Chain Makes US Debut

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Jul 1, 2025 - 10:04 Updated: Jul 1, 2025 - 09:56
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China’s Biggest Coffee Chain Makes US Debut
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Luckin Coffee, the fast-growing Chinese coffee chain that is outselling Starbucks in China, has established its first American presence in New York City.

The two inaugural stores opened Monday in Manhattan: one in Greenwich Village near the bustling New York University campus, and another in Madison Square North. The company is promoting the launch with giveaways and discounts on its website and social media platforms.

The New York menu features coffee staples alongside fruit-infused iced coffees, colorful “Refreshers,” and a small selection of pastries, catering to the brand’s core Gen Z demographic, who frequently showcase their drinks on platforms like TikTok.

Job postings on Luckin’s LinkedIn page suggest that its American headquarters is located in Secaucus, New Jersey, about five miles west of downtown Manhattan. The company did not respond to a request for more information by publication time.

Founded in 2017, Luckin rose rapidly in China by appealing to younger, budget-conscious consumers, particularly college students and young people who have just entered the workforce. This stands in contrast to Starbucks, which positions itself in China as a social destination for the middle class and a symbol of a more luxurious lifestyle.

In line with its budget-friendly image, Luckin is known for keeping overhead low with compact, often bare-bones stores. Many of its locations have no seating at all, and some have just a single table that seats two or three people. This approach helps minimize operating costs and allows Luckin to offer its products at lower prices than Starbucks.

Luckin surpassed Starbucks in the number of stores in China as early as 2019. However, its momentum was disputed in 2020 by a massive accounting scandal, where the company was found to have fabricated over $300 million in sales and profits.

According to the U.S. Securities and Exchange Commission (SEC), the fraud began in April 2019, a month before Luckin made its public market debut in the United States. As a result, Luckin was fined $180 million, delisted from the Nasdaq, and filed for Chapter 15 bankruptcy in 2022. The company also underwent a sweeping overhaul of its executive leadership.

The scandal had broader implications for Chinese firms seeking to be listed on American exchanges or raise capital in the country.

At the time, American investors had limited insight into the financial health of Chinese companies, in part because Chinese authorities block overseas regulators like the SEC from inspecting full audit reports of China- or Hong Kong-based firms, citing national security and state secrecy. In response to the concerns, the SEC tightened listing requirements for Chinese firms, and Congress passed legislation aimed at forcing them to comply with U.S. accounting standards.
Despite the setbacks, Luckin reported continued growth in China. According to Luckin’s most recent financial report, the company opened 6,092 net new stores in China in 2024 alone, bringing the total number of stores to 22,340, and 65 percent of which are company-operated.

The company has also expanded its presence in Asia, with 51 stores in Singapore, five in Hong Kong, and a new launch in Malaysia in January 2025.

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