Luckin Coffee, a major competitor to Starbucks in China, is planning an expansion into America.
Luckin has 21,343 stores across China and Singapore, where the company opened its first location in 2023.
“We are also actively evaluating opportunities in the United States and other markets. Given the maturity, saturation and competitiveness of the U.S. coffee market, we intend to approach our expansion strategy there with careful consideration and a disciplined execution plan,” Luckin Coffee said Wednesday in its release for the third quarter of its fiscal 2024.
The company’s annual revenue in China last year outstripped that of Starbucks, which has fewer Chinese locations, according to Bloomberg.
Sources familiar with Luckin Coffee’s plans told the Financial Times that the first U.S. locations will be in places with large populations of Chinese students and tourists. The company has been running ads during NBA games to build brand recognition.
Once in the U.S., Luckin Coffee wants to gain ground by selling drinks for $2 or $3, cheaper than its competitors, the sources added.
• Brad Matthews can be reached at bmatthews@washingtontimes.com.
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