Latest news with #LuckinCoffee
NBC News
11 hours ago
- Business
- NBC News
China's Luckin coffee challenges Starbucks in New York City
Luckin Coffee, a Chinese company, has opened its first two stores in New York City in an attempt to challenge coffee giant Starbucks which is trying to recover from a difficult year. NBC News' Steven Romo looks into the brewing 1, 2025
Metro
a day ago
- Business
- Metro
'Starbucks of China' has £1.50 drinks and fruit coffee — will it come to the UK?
There's no shortage of coffee chains to get your caffeine fix, from Starbucks and Costa, to Pret and Nero, to name just a few. But perhaps one of the biggest, is a brand you've never heard of. With a staggering 20,000 stores across the globe, Luckin Coffee, which hails from China, is looking to expand. The brand – which is already more popular than Starbucks in China, and has stores in Singapore and Malaysia – has just opened its doors in New York. And, there's rumours its setting its sights on the UK too. Founded in October 2017, Luckin offers signature drinks you won't find in your standard UK coffee shop: think coconut latte, orange americano, a velvet latte and Little Butter Latte. And, unlike your standard barista served coffee, they do things a little differently here. Here's everything you need to know about Luckin Coffee. Luckin overtook Starbucks as the largest coffee retailer in China back in 2023. What makes it different is its customer experience. You have to order drinks using the Luckin Coffee app, and pay on your phone, so there's no more waiting impatiently while the person in front fumbles with their cards. This makes it a very efficient operation, with customers on TikTok saying their whole experience took a maximum of five minutes. The app will also estimate your beverages time of arrival for you, sending a text when it's ready. The app also suggests personalised recommendations based on your order history, as well as dishing out exclusive deals and vouchers. With this, youget your caffeine fix keeping human interaction to a minimum. It's the opposite experience to Starbucks, which is planning to phase out its mobile-order-only US locations to give a more personal experience. Luckin Coffee is also giving you a serious first-time order discount, with £1.50 hot drinks available in the US as a promotional deal. In other stores they're being offered for as little as 75p. A simple iced black coffee will set you back about £3.74, while a more elaborate iced coconut latte will cost you £4.87. They're both pretty much what you'd expect. The menu typically scratches the same itch as the likes of Costa and Starbucks, but it does offer some more unusual offerings. Its bestseller of 2024 is the little butter latte, a coffee blended with butter for a 'smoother, creamier' experience. The chain's signature velvet latte is a little more confusing, claiming to have 'velvet-flavoured thick milk' which is meant to give your coffee a rich milky aroma. You can of course get a basic flat white or cappuccino too, or you can hop on the matcha hype with a matcha jasmine frappe or coconut matcha latte. What is perhaps most intriguing is its fruity americano range, including coffee with orange juice, pomelo juice, apple fizz or grape fizz. It's all on-trend, given that summer's unexpected refresher is the espresso lemonade. The menu is entirely drinks-based, which also sets it apart, meaning you simply grab your drink and go, unlike Starbucks where you could pick up a sandwich or cake. While there's no official news Luckin Coffee will come to the UK, we've done some snooping and it's looking promising. More Trending On July 22, Luckin Coffee Limited registered an office address in Basildon to run restaurants and cafes, take-away food shops, and mobile food stands. So if you're keen to give it a go, you might not have to fly to China or the Big Apple to have a taste. View More » Metro has reached out to Luckin Coffee for comment. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ MORE: We found three places in London that feel just like a day at the beach MORE: Supermarket own-brand chocolate bar crowned better than Cadbury, Tony's and M&S MORE: 'Peak Greggs' is coming to UK — here's everything sausage roll fans should know Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
The Guardian
a day ago
- Business
- The Guardian
The rapid rise of Luckin coffee: is this the end of the Starbucks supremacy?
Name: Luckin. Age: Seven – it was founded in October 2017. Appearance: 20,000 locations and counting. Locations doing what? Serving coffee. It's a giant coffee chain. Oh yeah? If it's so giant, how come I've never heard of it? Because it started in China. Isn't China better known for tea? Yes, but they have drunk a lot more coffee since Starbucks opened its first outlets there in 1999. Luckin overtook Starbucks as China's biggest coffee chain in 2023. If Chinese people want Chinese coffee, so be it. It's a big world. Luckin knows that, which is why it has just opened up two outlets in New York City, on Starbucks' doorstep. It's aiming for global domination? It certainly looks like it. 'This is just the beginning,' Luckin posted on Instagram. 'NYC, we're here.' But why would I go to Luckin when I can go to Starbucks? For a largely frictionless technological experience. It has an app-based ordering system, no cashiers and hardly any seats. You just grab your latte and go. Is the coffee any better? If you really cared about coffee, you wouldn't go to either of these places. But Starbucks is home of the caramel macchiato, the pumpkin spice latte … Luckin is known for bestsellers like the coconut latte, the velvet latte and apple fizzy americano. Apple what? That's apple juice, fizzy water and coffee, over ice. What is Starbucks doing to fend off the Luckin threat? It is closing a bunch of stores. A bold strategy, if a little counterintuitive. The company plans to phase out its 90 or so 'mobile-order-only' locations in the US, to concentrate on 'community coffee houses' and a more personal customer experience. So it's going in the exact opposite direction to Luckin. It seems so. It has plans to refurbish existing locations, and it is going back to writing your name on the cup. A warm, friendly, welcoming atmosphere versus zero human interaction? I'm torn. If it helps you make up your mind, Luckin is also engaging in furious promotional discounting, selling $1.99 coffees in a city where a $6 cappuccino is not uncommon. Starbucks is doomed. That's a little premature. Luckin reported $4.7bn in sales last year, compared with $36.2bn net revenue for Starbucks. Still, a remarkable rise for the Chinese upstart. All the more remarkable after a 2020 false accounting scandal caused its stock price to collapse, driving the company into bankruptcy in the US. It emerged from bankruptcy in 2022, having replaced its top brass and received huge cash injections from a private equity firm. Do say: 'Good morning, young barista. One of your legendary handcrafted flat whites, please.' Don't say: 'You know what I miss? Vending machines.'
The Guardian
2 days ago
- Business
- The Guardian
The rapid rise of Luckin coffee: is this the end of the Starbucks supremacy?
Name: Luckin. Age: Seven – it was founded in October 2017. Appearance: 20,000 locations and counting. Locations doing what? Serving coffee. It's a giant coffee chain. Oh yeah? If it's so giant, how come I've never heard of it? Because it started in China. Isn't China better known for tea? Yes, but they have drunk a lot more coffee since Starbucks opened its first outlets there in 1999. Luckin overtook Starbucks as China's biggest coffee chain in 2023. If Chinese people want Chinese coffee, so be it. It's a big world. Luckin knows that, which is why it has just opened up two outlets in New York City, on Starbucks' doorstep. It's aiming for global domination? It certainly looks like it. 'This is just the beginning,' Luckin posted on Instagram. 'NYC, we're here.' But why would I go to Luckin when I can go to Starbucks? For a largely frictionless technological experience. It has an app-based ordering system, no cashiers and hardly any seats. You just grab your latte and go. Is the coffee any better? If you really cared about coffee, you wouldn't go to either of these places. But Starbucks is home of the caramel macchiato, the pumpkin spice latte … Luckin is known for bestsellers like the coconut latte, the velvet latte and apple fizzy americano. Apple what? That's apple juice, fizzy water and coffee, over ice. What is Starbucks doing to fend off the Luckin threat? It is closing a bunch of stores. A bold strategy, if a little counterintuitive. The company plans to phase out its 90 or so 'mobile-order-only' locations in the US, to concentrate on 'community coffee houses' and a more personal customer experience. So it's going in the exact opposite direction to Luckin. It seems so. It has plans to refurbish existing locations, and it is going back to writing your name on the cup. A warm, friendly, welcoming atmosphere versus zero human interaction? I'm torn. If it helps you make up your mind, Luckin is also engaging in furious promotional discounting, selling $1.99 coffees in a city where a $6 cappuccino is not uncommon. Starbucks is doomed. That's a little premature. Luckin reported $4.7bn in sales last year, compared with $36.2bn net revenue for Starbucks. Still, a remarkable rise for the Chinese upstart. All the more remarkable after a 2020 false accounting scandal caused its stock price to collapse, driving the company into bankruptcy in the US. It emerged from bankruptcy in 2022, having replaced its top brass and received huge cash injections from a private equity firm. Do say: 'Good morning, young barista. One of your legendary handcrafted flat whites, please.' Don't say: 'You know what I miss? Vending machines.'
Yahoo
2 days ago
- Business
- Yahoo
Starbucks posts 6th straight quarter of US same-store sales declines as turnaround efforts continue
Starbucks (SBUX) reported a sixth straight quarterly drop in US same-store sales on Tuesday as the company continues to grapple with an uncertain consumer environment and its CEO's turnaround efforts. US same-store sales fell 2%, in line with the prior quarter's drop but less than the 2.5% drop that had been forecast. That was driven lower by a 4% decline in comparable transactions. Wall Street expected a sharper 4.5% decline. Starbucks "fixed a lot and done the hard work on the hard things to build a strong operating foundation and based on my experience of turnarounds, we are ahead of schedule," CEO Brian Niccol, who previously led the turnaround at Chipotle, said in the release. Starbucks stock was little-changed near midday on Wednesday. Global same-store sales fell 2%, more than the 1.5% decline expected, per Bloomberg data, marking an acceleration from the previous quarter's 1% drop. Same-store sales in China rose 2% against forecasts for a 1.4% rise, driven by beverage innovation. The jump was driven by an increase in transactions, which was offset by a decline in the average ticket as the company lowered prices to compete with rival Luckin Coffee (LKNCY). This marks the second straight quarter of positive growth for its operations in China as the company seeks out a partner in the region. Niccol said Starbucks seeks a local partner that shares the same "belief that there's this opportunity to grow" and can set up the brand long-term. Adjusted earnings per share came in at $0.50, missing forecasts for $0.65 per share. Revenue rose 5% to $9.5 billion, more than the $9.3 billion that had been forecast. Read more: Live coverage of corporate earnings Since joining the company last fall, Niccol has tried to change the fortunes of the coffee chain by cutting staff earlier this year and announcing plans this month to require more staff to be in the office four days per week. The company has also incentivized its management team to more aggressively turn around the business, offering executives performance-based stock grants focused on cutting costs. The company plans to prioritize a cozy coffeehouse atmosphere and move away from pickup-focused experiences for customers. Consequently, Starbucks plans to execute small, targeted renovations of its stores, amounting to approximately $150,000 per location, to bring back the thousands of chairs for patrons it took away. For new locations, Niccol said it was able to cut the build cost by roughly 30% and will introduce a new stand-alone prototype in fiscal 2026 that will have 32 seats and a drive-through. As Niccol reassess the store portfolio, there are no plans to change one aspect of Starbucks' past — its cup sizes. "We're not changing anything as it relates to the Grande, the Tall, the Venti that that is unchanged," he told Yahoo Finance, there are "certain dayparts and certain occasions where it may make sense to have different cup sizes." As it introduces new innovation like the Cortado, which comes in a short cup, and new food items, it's likely new packages will be introduced to get the "exact right experience" for customers. Starbucks is also investing $500 million dollars of additional labor hours in its US stores over the next year. The plan is a part of its new operating model, dubbed Green Apron service, which is set to roll out to US locations by mid-August. CFO Cathy Smith called it "a foundational operating model that establishes the repeatable, consistent, scalable standards that we want and need in customer service." So far, transactions, sales, and customer service times have improved based on a pilot of 1,500 stores in eight weeks, Niccol said. Innovation is a key part of its strategy, too. Protein cold foam, set to hit the menu in the fourth quarter, will include 15 grams of protein with no added sugar. The company is also exploring coconut water-based tea and improved artisanal food options. Since Starbucks was ridiculed over its complex menus, Niccol said its approach to innovation has changed. "This innovation is being co-built with our baristas in our stores, versus we build it in the support center, we throw it over the wall, and we hope that our baristas can figure it out, right?" he said. "Those days are over," he added. "We're going to build it with the field and our baristas in store at the start of the process." The company did not provide official guidance for the year, but Smith said, "We are confident that 2026 will continue to improve" as it rolls out its Back to Starbucks strategy and eyes the return of the coveted Pumpkin Spice Latte next month. She added, "Taking into account that we have a lot in flight, combined with the uncertain consumer environment, we are conservative on how the current year-over-year trends will change in the fourth quarter for the US company-operated business." As the coffee giant navigates the current tariff environment, Niccol said that the company is "very much diversified in our coffee buying," adding that it will "has minimal impact in the very near term." When Yahoo Finance asked if it would have to raise prices to offset the impact, he said "we don't have any plans to raise prices," but will "be smart" about if it does need to raise prices in the future. — Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
