Chinese beverage chains are spreading across the United States, challenging Starbucks’ dominance

Starbucks opened The first store in China in 1999, when Drink coffee The Western-style café was still a new idea for many locals. But in the years since, local coffee and bubble tea brands such as Luckin Coffee, Heytea, Chagee and Mixue have gradually chipped away at Starbucks’ Chinese market share. Now they’re crossing the Pacific, hoping to compete with the Seattle-based coffee giant and other American beverage chains back home.

We wanted to try and taste what these Chinese brands have to offer American consumers. Over the past week, we visited two Luckin cafés and a HeyTea store in New York City, as well as a Chagee location in Los Angeles. What we find is a new and different beverage culture taking shape, built on speed, smartphone apps and distinct flavours.

The arrival of these Chinese chains comes at a difficult moment for Starbucks. The company closed more than 600 stores worldwide this year and laid off nearly 900 company employees. Elected Mayor of New York City Zahran Mamdani He urged people on Thursday to Boycott Starbucks like Unionized baristas Dozens of its locations in the United States went on strike. Earlier this month, Starbucks announced this He agreed To sell up to 60% of its China business to a private equity firm.

Lockin’s first application model

The Chinese beverage brand that appears to be expanding the fastest in the U.S. is Luckin, which opened five locations in Manhattan this year alone. Luckin is the largest coffee shop chain in China, with more than 26,000 stores globally. In China, there are about three Luckin coffee shops for every Starbucks. Founded by a former tech executive less than a decade ago, the company is known for its cool app-oriented cafes.

Zeyi visited a Luckin outpost in New York City’s Financial District, where he got a regular-sized iced coconut latte that cost $7.02 after tax. He says he was amazed at how quiet it was – at 4pm on a Tuesday, there were about four customers in the store. But the strange silence had to do with how the employees behaved. Luckin requires customers to place their orders online, so there’s no need to talk to a human.

The computer screen alerted baristas when orders arrived and printed labels for them to place on each cup. The only interaction with a customer occurred when a confused Zeyi and another person showed up at the counter. “Is this your first time here?” – asked an employee. “We do everything online here. You can scan the code and order.” When Ziyi finished his drink, he said the baristas left it on the table, and he had to figure out which one to drink for himself.

The next day, Zeyi visited another Luckin location downtown, which he said was busier than the first store. This time, he decided to download the Luckin app, where new customers who use it can get their first drink for $1.99, which is a pretty good deal in New York City. Zeyi ordered a cold drink, and the baristas said nothing again when it was ready.