Chinese drink chains are re -defined the coffee culture in the country – and now they are trying to win the US and the customers beyond.
China’s biggest coffee chain is a luxurious coffee Aggressively expanded in China And overtook Starbucks on the mainland, with outlets over twice.
Following Accounting fraud scam In 2020, the company was removed from the NASDAQ, Lakkin staged an unexpected return with rival Koti Coffee as a low -1.40 per cup during the earlier price war.
Wall Street’s defeat has not reduced Lakin’s ambitions in the US, where it still trades on the counter. After entering Singapore, Hong Kong and Malaysia, Lucky is ready to set its biggest jump with a plan to open a branch in Lower Manhattan yet.
This step is Mirror Kotini, which only opened outlets in Brooklyn and Manhattan. Established in 2022 by former Lucky officials, which was excluded in the scam, Cotet has also increased rapidly in China and internationally, with shops in places from Southeast Asia to Dubai and California.
On June 23, 2024, a copy coffee store next to Shang Van MTR station in Hong Kong.
Bloomberg | Bloomberg | Getty images
“New York is probably culturally the best testing ground for an international brand, especially to expand the city’s diversity and a large base of young consumers, Burnstein’s senior analyst Danilo Gargulo said,” New York is probably the best testing ground for an international brand, “said” the city’s diversity and the large base of the young consumers said, “said Denillo Gargulo, senior analyst of the city. “But it is also the most saturated, one of the most competitive markets.”
Chinese chains combine budget pricing with abnormal tastes that often stain the line between coffee and bubble tea – surrounds purists but are extremely popular at home. Lakkin said that liquor-enacted Latte, developed with China’s head Mutai liquor manufacturer, sold more than 5.4 million cups on its first day in 2023, increasing sales by more than $ 13.7 million. The company alone launched 119 separate items in 2024.
Lakkin has made his business around technology, allowing customers to order and receive delivery through the country’s omnipotent WECHAT app, replacing traditional cafe experience with hyper efficiency. The company also performs large coffee-bean roasting and processing operations in China to help reduce costs.
Two cups of coffee on the table in a Lucky Coffee Store.
Zhang Peng | Lightrocket | Getty images
The question is whether it will work in America.
Lucky and Koti did not respond to the requests of comment from CNBC. On an earning call in April, Lakkin co-founder Guo Jinai said that the company has planned to “adopt flexible, locally sewn models” to continuously expand abroad. By slowing down the growth and intense competition in China, companies have pushed to seek opportunities beyond their boundaries.
Coffee price war
From electric car manufacturers to food delivery platforms, large -scale Chinese companies often follow a familiar strategy: burn cash, grab market share, worry about later benefits. This helps them grow faster, but can affect global competitors.
In the latest signal of growing competition in China, Starbucks said on Monday that it would reduce dozens of drinks in the country, which is an average of $ 0.70 in this summer.
People sit in a Starbucks coffee shop in a purchasing area in Beijing, China on April 24, 2025.
Kevin Freer | Getty Image News | Getty images
In New York, Cotet is selling drinks for 99 cents for the first time that for the first time download their app to customers. Over time, analysts estimate that Lucky and Koti will still be cheaper than Starbucks in the US, but this difference will be narrow than China.
Major Chinese cities may share love for manhattan efficiency, but the businesses there may have to face New York wages and need to accept additional payment options, adding costs, adding costs, Elison Malmston, Chinese strategy director said that in duty consulting. He said that tariffs on Chinese businesses can carry forward the benefits of their supply chain.
“There is a long list of things that can potentially increase the price,” Malmaston said.
If Lucky’s New York starts successful, the company may move forward. Heytea – A Chinese chain known to top his tea with foam cream cheese – landed in New York in late 2023 and since then spread to Boston, Seattle and Los Angeles.
Despite the tension between Washington and Beijing, General Z and Small American see China differently from older generations, which can combine Chinese products with low quality, according to Malmston. The deal with Chinese chains coffee can also appeal to New Yorkers that everything from groceries to coffee beans is facing increasing costs.
Analysts say yet, coffee shops running on thin margin require volumes. This means appealing for a wide range of customers.
Gargiulo of Bernstein said, “If it is considered only a tourist or foreign adventure, it is not going to be a part of your day-to-day consumption, it is not going to be a part of your morning routine.”
