Luckin Coffee, China’s leading coffee chain, has debuted its first upscale outlet in Shenzhen, challenging Starbucks’ premium roasteries with artisanal pour-overs and cold brews from beans sourced in Brazil, Ethiopia, and Yunnan province.
The 420-square-metre two-storey flagship, opened Sunday near Hong Kong, marks a departure from Luckin’s budget kiosk model that overtook Starbucks in store count. It charges modest premiums over standard $1-2 Americanos or lattes, with a “tiramisu latte” topped by pastry drawing one-to-three-hour queues on Xiaohongshu since the 20 January soft launch.
Billed as Luckin’s 30,000th site from 29,214 worldwide at end-September 2025, it underscores fierce rivalry in a market of nearly 50,000 branded outlets, up 58 per cent yearly. Luckin’s self-operated stores posted $1.55 billion revenue for the quarter to 30 September—48 per cent growth—topping Starbucks’ $831.6 million China net revenue (six per cent up, two per cent same-store sales, rising to seven per cent next quarter).
Starbucks runs over 8,000 China stores versus 16,900 in the U.S. and eyes selling 60 per cent of its China arm to Boyu Capital this spring for $13 billion total value. Post-2020 fraud delisting, Luckin—now valued at $10.46 billion over-the-counter—thrives via app orders and tie-ups like Moutai, Minions, and Black Myth: Wukong.
“What sets Luckin apart has been its ability to build a robust pool of private user traffic through its smartphone ordering app,” said Mingchao Xiao, founder of Zhimeng Trends Consulting. “Rather than placing orders with a counter clerk, Luckin customers select and pay for drinks directly through an app.”
“China’s coffee market is still in a period of rapid change,” Xiao said. Young consumers seek novel experiences and emotional fulfilment via brand collaborations, as Luckin expands with 10 New York stores, 68 in Singapore, and 45 in Malaysia.