China's upstart coffee chain shot at US giant Starbucks

SHANGHAI – Chinese Coffee Chain Luckin Coffee quickly achieves its large US rival Starbucks, which capitalizes on low prices.

A 34-year-old man in Shanghai, who buys coffee every day, has recently switched from Starbucks to Luckin. He said Luckin offers good coffee, and he often uses the chain these days because the coffee is cheaper if it is bought with friends.

Luckin has expanded rapidly over the past year and operates more than 2000 stores compared to Starbucks & # 39; 3,400 or so. Unlike traditional coffee chains like Starbucks, most Luckin stores have only one cash register and one room where employees can make the coffee specializing in delivery and takeaway. It has continued to launch stores at a rapid pace by reducing opening costs.

Luckin emphasizes the quality of coffee beans and milk, including coffee supervised by a barista who won the World Barista Championship. It also focuses on the design of the cups and logo to attract younger customers.

But Luckin has won the consumers' hearts because of low prices. A Starbucks latte costs 29 yuan ($ 4.29), while a Luckin latte goes for 24 yuan. However, with Luckin's "buy two, get a free" store, one can get three lattes for the price of two, and reduce the price of each latte to as little as 1[ads1]6 yuan.

Meanwhile, some Chinese consumers still prefer Starbucks over Luckin. Zhang Xue, a 28-year-old clerk in Shanghai, said she had tried Luckin, but she thought Starbucks tastes better. Chinese consumers are tightening their cash flows, due to uncertainty over the country's economy during the trade war with the United States, and this gives Luckin a backwind. But as the revenue rises, more Chinese consumers can now pour a cup of coffee.