Official announcements from Luckin Coffee or business news outlets

Luckin Coffee to Launch in U.S. with 20,000 Shops, Undercutting Starbucks Prices After $180 Million Fraud Fine

Oct 29, 2024, 01:16 AM

Luckin Coffee, the Chinese coffee chain that faced a major fraud scandal in 2019, is planning to enter the U.S. market as early as next year. Reports indicate that the company aims to undercut Starbucks on pricing, marking a significant competitive move against the American coffee giant. Luckin currently operates around 20,000 coffee shops in China and has successfully captured a substantial market share, surpassing Starbucks's revenue in the region. In 2023, Luckin reported annual revenue of 24.9 billion yuan ($3.48 billion), compared to Starbucks's approximately $3.16 billion in China. The Financial Times noted that this expansion represents a comeback for Luckin, which was delisted from Nasdaq and fined $180 million following its fraud scandal. While Luckin has not officially commented on its U.S. plans, analysts suggest that the company could significantly disrupt Starbucks's market presence.