BRIEF: Luckin launches in U.S. without signature budget pricing
Chinese coffee chain Luckin Coffee (LKNCY.US) has officially entered the U.S. with the June 30 opening its first two stores in Manhattan, New York, marking a significant step in its global expansion.
According to a report by Yicai, both of the stores are using a “Grab-n-Go” model, with equipment, beverage recipes and payment systems all localized for the U.S. market. The company aims to use the New York pilot to gain experience in site selection, product development, and service operations, providing a foundation for a larger-scale international expansion.
Unlike its “value-for-money” strategy in China, Luckin is not engaging in deep discounts in the U.S. The company’s U.S. app shows drip coffee priced at around $3 to $5 per cup, while coconut lattes are about $6.50 — similar to Starbucks’ prices in the U.S. and consistent with Luckin’s pricing in Singapore. That said, before the official opening, the company offered promotional coupons for $0.99 per cup to attract customers.
Founded in 2017, Luckin began expanding overseas in 2023 with entries into Singapore and Malaysia. At the end of March, it had 24,097 stores worldwide, including 57 self-operated stores in Singapore and eight franchised outlets in Malaysia. Its U.S. entry is seen as a key milestone in its globalization journey.
Luckin’s stock has risen nearly 10% over the past five days in New York.
By Lee Shih Ta
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