When you think of the world’s most successful coffee chain, you probably think of Starbucks.
They’re a tried-and-true coffee shop favorite, with some of the best cold drinks on the market and a crowd-favorite app… but now, they’ve got some competition.
Luckin Coffee is making waves in the US coffee scene, proving themselves a worthy competitor to classic coffee brands in major ways.
In this blog, we’ll explore all things Luckin Coffee is, from who they are and how they grew in the US to four ways they’re standing out against well-loved brands like Starbucks.
Let’s dive in.
Who is Luckin Coffee?
Luckin Coffee is a Chinese coffee chain founded in 2017 and headquartered in Xiamen, China.
The brand says they are “pioneering a new technology-driven new retail model” that offers “coffee and other products of high quality, high affordability, and high convenience to our customers.” Ultimately, Luckin Coffee’s vision is to create “a world-class coffee brand” that becomes an irreplaceable part of customers’ lives.
Over the past eight years, Luckin Coffee has quickly grown in popularity, dominating headlines with some pretty incredible milestones for a coffee brand that’s less than a decade old.
- 2018 – Luckin Coffee won a gold medal at the IIAC Intl. Coffee Tasting Competition for their coffee beans (just one year after being founded!)
- 2021 – Luckin Coffee reached over USD 1.2B in annual revenue, a 97.5% increase from the previous year’s earnings
- 2023 – Luckin Coffee exceeded 10,000 locations in China, beating Starbucks in both store count and sales. They also expanded into Singapore!
- 2024 – Luckin Coffee celebrated the opening of its 20,000th store in Beijing, reinforcing their position as China’s largest coffee chain
2025 has been an especially big year for Luckin Coffee as they opened their first North American stores. New Yorkers can now try Luckin Coffee at seven locations throughout the city (with two more coming soon!).
Now, some people are calling the brand’s North American debut “a direct challenge to Starbucks,” especially considering how Luckin Coffee has outperformed Starbucks in China.
But is the expansion into the US the actual “challenge?” Or are there other ways Luckin Coffee is competing with Starbucks, regardless of location?
If you ask us, we think it could be the latter.
How Luckin Coffee is competing with Starbucks
Luckin Coffee’s dedication to gold-medal coffee and international growth is impressive, but it isn’t the only thing that makes them stand out.
Here are four ways Luckin Coffee is standing out against competitors like Starbucks.
Unique app-only strategy
One of Luckin Coffee’s key differentiators is its app-only model, an operational choice that’s unheard of among the brand’s North American competitors.
The concept is simple: If you want to order from Luckin Coffee, you need the app.
There’s no cash on site or point-of-sale systems, so if you show up expecting to order from a barista at the counter, you’ll be leaving empty-handed.
Luckin Coffee’s app-only strategy means they can cut down overhead, save on labor costs, and boost efficiency… but it also promotes a stronger personalization experience for Luckin Coffee’s customers, keeping the brand on level playing ground with Starbucks’ customization strategy.
- Pro Tip: Investing in digital ordering systems (like a Craver mobile app!) is a great way to reduce friction for your customers, gather invaluable data, and build loyalty.
Unbeatable in-app pricing & discounts
Another way Luckin Coffee competes with brands like Starbucks is by offering in-app deals that are hard to compete with.
For example, every new Luckin Coffee app user gets their first drink for just $1.99. Then, once the customer is in the app, they immediately get access to a ton of click-to-use deals, like up to 70% off select drinks, and a rewards program that earns points per dollar spent (even if the dollars you spent were already discounted).
Combine up to 70% off with free drinks and rewards, and Luckin Coffee’s in-app deals become impossible to beat — especially with Starbucks looking beyond loyalty lately.
- Pro Tip: Get strategic with the discounts and loyalty rewards you offer. Create targeted deals that encourage repeat visits and build loyalty, not just random coupons.
Adventurous flavor combinations
Luckin Coffee also stays competitive with brands like Starbucks by offering adventurous flavor combinations that customers can’t find anywhere else.
A few of Luckin Coffee’s most notable (and unique) drinks include:
- Pomelo Americano — A high-quality iced espresso mixed with pomelo juice
- Little Butter Latte — An extra-rich latte made with “upgraded French butter”
- Caramel Popcorn Latte — An indulgent, creamy latte with caramel and real popcorn
Luckin Coffee’s drinks are one of the main drivers of their notoriety. Through social media posts and in-app campaigns, the brand is enticing American coffee drinkers through flavors and combinations that aren’t common in North America (at least not yet).
- Pro Tip: Seasonal, experimental drinks can help your coffee shop stand out. Get experimental with limited-time flavors and let your customers pick their favorites.
Strong, digital-first marketing
Another one of Luckin Coffee’s key differentiators is their commitment to digital-first marketing.
And, while Luckin Coffee’s app-only model gives them the necessary infrastructure to take advantage of digital marketing, it’s their creativity that helps them stand out. They’ve done everything from influencer marketing campaigns with celebrities like Jackson Yee to collabs with pop-culturally relevant brands like Duolingo, and it all happens right on their customers’ devices.
Other big brands (like Starbucks) may have just as many marketing and experiential incentives going on, but none of them are as seamlessly “online” as Luckin Coffee is — and that’s why they’re running the digital-first show right now.
- Pro Tip: Consistent, creative marketing efforts are how you stand out. Think collabs with local influencers and community events vs. expensive, nationwide ad campaigns.
Wrap up
Luckin Coffee is challenging Starbucks by rewriting the rules on what a successful coffee shop can be (and what it should look like in practice).
Unbeatable discounts? Check.
An app-only experience? Check.
Bold, one-of-a-kind coffee flavors? Check.
Luckin Coffee has some big things on the horizon — and we can’t wait to see how they make themselves stand out next.
Luckin Coffee found success with a mobile app. With Craver, you can too.
