Luckin Coffee is headed Stateside. The Beijing-based coffee chain that bested Starbucks in China has turned their sights on the US and are opening their first cafe in New York City.
It has been a wild ride for Luckin since their introduction in 2017. They came out like gangbusters. Their kiosk-style cafes with smaller footprints and delivery model allowed their rapid expansion, and by 2020, there were more Luckins in China than there were Starbucks. But it turns out it wasn’t just superior business acumen that helped Luckin come out on top. There was also just a smidge of fraud. Then after a $180 million fine from the SEC, another fine of an undisclosed amount from China’s Ministry of Finance, the firing of multiple high-level execs, and a de-listing on Nasdaq, Luckin filed for bankruptcy.
But that’s all water under the bridge it seems and Luckin is back and bigger than ever. Their first US location is set to open on Broadway and East Eighth Street in the East Village, where they will be taking over a former Sunglass Hut, per Eater New York. The exact opening date is yet to be announced and the company is still in the process of hiring, for both barista positions (whatever that means at a mostly automated, cashier-less fast food cafe like Luckin) as well as corporate-type roles at their Secaucus, New Jersey American headquarters.
The backdrop to all this is of course the current trade war between the US and China. Currently, America is taxing any goods coming from China at a rate of 145% while the average tariff on US goods entering China is 124.1%. How any of this impacts a Chinese company moving into America is unclear but it certainly adds a layer of intrigue for a brand like Luckin, whose entire business model is about quick service and cost-cutting.
Zac Cadwalader is the managing editor at Sprudge Media Network and a staff writer based in Dallas. Read more Zac Cadwalader on Sprudge.
