China's homegrown coffee giants are brewing up a U.S. expansion

Chinese beverage chains are redefining coffee culture in the country — and now they’re trying to win over customers in the U.S. and beyond

Chinese beverage chains are redefining coffee culture in the country — and now they’re trying to win over customers in the U.S. and beyond.

Luckin Coffee, China’s largest coffee chain, has expanded aggressively in China and overtaken Starbucks on the mainland, with more than twice as many outlets.

Following an accounting fraud scandal that got the company delisted from the Nasdaq in 2020, Luckin has staged an unlikely comeback with quirky flavors and steep discounts — as low as $1.40 per cup during an earlier price war with rival Cotti Coffee.

The Wall Street debacle hasn’t dampened Luckin’s ambitions in the U.S., where it still trades over the counter. After venturing into Singapore, Hong Kong and Malaysia, Luckin is set to take its biggest leap yet with plans to open a branch in Lower Manhattan.

The move mirrors Cotti’s, which just opened outlets in Brooklyn and Manhattan. Founded in 2022 by former Luckin executives who were ousted over the scandal, Cotti has also grown rapidly in China and internationally, with stores in locations ranging from Southeast Asia to Dubai and California.