Luckin Coffee Plans U.S. Expansion After Surpassing Starbucks in China

The Chinese coffee chain aims to enter the U.S. market with low-cost drinks following its recovery from a major fraud scandal.

Luckin Coffee, having overtaken Starbucks in China, is targeting a U.S. launch with drinks priced between $2 and $3.
The company was delisted from Nasdaq in 2020 due to a $300 million sales inflation scandal but has since rebounded strongly in China.
Luckin plans to focus its U.S. expansion on cities with large Chinese student and tourist populations, such as New York.
Starbucks has been struggling in China, reporting a 14% decline in same-store sales in the latest quarter amid intense competition.
Luckin's strategic marketing and partnerships, like the viral baijiu coffee drink, have bolstered its brand image and customer base.