Starbucks’ huge new rival opens first US stores | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Whether at an airport, gas station, mall, on the street, or even abroad, you will surely stumble across a Starbucks location nearly anywhere.

It is one of the world’s best-known coffee houses, with over 40,000 locations in 80 countries.

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However, its business has faced some declines over the last few quarters, leading it to enact a huge turnaround strategy to improve its overall business.

Recently, U.S. consumers have opted to purchase their daily cup of coffee from smaller chains like Dutch Bros (BROS) , Scooter’s Coffee, and 7 Brew Coffee, where traffic has grown more quickly than at Starbucks.

Although Starbucks’ traffic may be declining slightly compared to past years, none of these smaller chains has convinced enough consumers to switch sides, as their sales have yet to reach the coffee giant’s numbers.

Starbucks’ huge new rival opens its first two locations in the U.S.

Image source&colon; Cheng Xin/Getty Images

Rival Chinese coffee chain is spotted in the U.S. for the first time

Luckin Coffee (LKNCY) entered the coffee market in 2017 when it opened its first store in Beijing, 46 years after Starbucks launched.

By then, Starbucks (SBUX) had already become a massive chain, so when this Chinese coffee shop entered its sector, it most likely flew under the radar.

However, Luckin Coffee took off quickly and became China’s largest coffee chain in 2023, surpassing Starbucks in the region.

In less than 10 years since its inception, the chain has already built over 24,000 stores in Asia, and now it’s ready to dominate other markets by entering new territories.

Although Americans might not be familiar with Luckin Coffee, its blue-and-white deer logo is unmissable. It caught people’s eye immediately when it was spotted in two locations for the first time in New York City.

The chain’s logo and “Opening Soon” signs were seen at 755 Broadway and at 800 6th Ave, but the official date for the grand openings was kept a secret for weeks.

Luckin Coffee officially opens its first U.S. locations

Luckin Coffee revealed that it officially opened both of its New York City stores as of June 30, marking its debut in the U.S. market.

This Chinese coffee chain is known for its high-quality coffee and wide range of menu options at affordable prices.

However, with the U.S. having a different economy and currency, it’s no surprise that Luckin Coffee’s U.S. prices would be higher than those at its Asia locations.

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Over the last few months, Starbucks has made multiple changes to its menu by simplifying it and eliminating extra charges after receiving backlash for raising prices. This is a timely move, given that Luckin Coffee has expanded to the U.S.

When comparing their menus, both coffee chains carry handcrafted coffee beverages, frappes, matcha drinks, and refreshers. Their prices are also very similar, with a 16-ounce drip coffee costing $3.45.

Now, it’s up to U.S. consumers to decide if they will remain loyal to Starbucks or swap it out with the new coffee brand in town.