The popular Starbucks rival that's expanding rapidly in the US
Statistically, Starbucks is the largest coffee chain in the US, operating around 15,000 locations across all 52 states, as per reports.
And while you may be loyal to your protein cold foam iced coffees and a firm fan of the brand’s ChatGPT extension, others are seeking excitement elsewhere.
Dunkin’ Doughnuts and Onyx Coffee Lab, the latter of which recently received the title of best coffee shop in the world for 2026, are two favourites, as is Starbucks rival Mixue Ice Cream & Tea.
However, your go-to may not be any of the coffee houses that we’ve just mentioned.
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Instead, your go-to could be the biggest coffee company in China, known as Luckin Coffee, which recently opened its first US locations in New York.
What is Luckin Coffee?
The business offers customers seamless virtual ordering via the Luckin Coffee app or QR code and urges guests to pick up $1.99 drinks, including its signature coconut latte and other caffeinated beverages made with high-quality arabica beans.
Not much of a coffee fan? You’ll be pleased to know that indulgent cups of creamy matcha, orange iced tea, and strawberry-flavoured Frappuccinos are also on the menu.
What started as two branches in NY has rapidly become a bursting portfolio with 20 bustling locations dotted around Manhattan, according to a Food & Wine report.
And while Luckin’ Coffee is yet to hit the likes of Los Angeles, Chicago, or Seattle, apparently it could have its sights set on a UK expansion.
FOODbible previously contacted the brand for news after a filing of a similar name was made to Companies House.
However, a spokesperson for Luckin Coffee stated at the time: "We currently do not have specific details to share. Should there be updates in the future, we will share them.”
Luckin Coffee's past issues
Despite its global success, with the 2017-founded chain having a jaw-dropping 36,310 locations across the globe, Luckin Coffee’s history isn’t exactly squeaky clean.
It hit troubled waters in 2020 with an accounting scandal, eventually seeing it being delisted from the Nasdaq stock exchange.
It was reported that leadership changes followed, with the chain eventually growing to overtake Starbucks in China as the country’s biggest coffee chain in 2023.
The accounting scandal saw the SEC charge Luckin with defrauding investors with illegitimate revenue figures, expenses, and net operating losses. Luckin Coffee agreed to pay a $180 million (£132mn) penalty over the charges.
Luckin Coffee's Q2 results show rapid expansion
Before the US stock market opened on Monday 3 August, Luckin Coffee released its second-quarter financial results.
The Starbucks rival reported revenue of CNY 15,885.62 million ($2.35 billion) and net income of CNY 1,486.41 million ($220.22 million).
A completion of a US$195.1 million share repurchase program covering 48,900,000 shares was also explained during the same-day conference.
Overall, year-over-year net revenues increased by 28.5 percent and GAAP operating income increased by 22 percent over the same period.
Startingly, the average monthly transacting customers reached a record high of 112.7 million, according to Luckin Coffee’s financial results.
In Q2, the company also added 2,714 net new stores to reach 36,310 locations globally.
Luckin Coffee CEO discusses Q2 results
“Our second quarter performance reflects the strength of our high-quality, scaled growth strategy and the resilience of our business model,” said Dr. Jinyi Guo, Co-founder and CEO of Luckin Coffee.
“We continue to translate growing consumer demand into market share gains, with our store network surpassing 36,000 locations and cumulative transacting customers approaching 500 million.
“Through industry-leading store expansion, continuous product innovation and deeper customer engagement, we further reinforced Luckin Coffee’s market leadership, underpinned by our differentiated digital capabilities and strong brand equity.”
He continued: “As China’s coffee market continues to evolve, we remain confident in our ability to capture the significant growth opportunities ahead while creating long-term value for our shareholders.”
Following the number crunch, the CEO said it remained ‘cautiously optimistic’ about its performance in the second half of the year.
It's not known if or when Luckin Coffee will be available outside of New York. So for now, it looks as if we are taking a trip.
Ella Scott