Luckin good
When Starbucks entered China in the late 1990s, its competition was mostly small independent shops. But, some formidable rivals have since emerged, most notably Luckin Coffee, a local chain that's won customers around with its cheap coffee, growing to over 13,000 stores in just 6 years. That knocks Starbucks off the top spot in China, with just 6,800 locations in the region.
Established in 2017, Luckin Coffee swiftly gained momentum through its mobile app and efficient delivery, becoming known for its minimalist stores, in contrast to Starbucks' often more elaborate cafes. Luckin achieved unicorn status just a year later, before going public in 2019. By 2020, however, the Chinese chain was embroiled in an accounting scandal, admitting to fabricating $310 million in coffee and snacks that it didn’t really sell, paying a hefty $180 million fine to the SEC, before eventually filing for Chapter 15 bankruptcy.
Full steam ahead
But, following a restructuring, Luckin Coffee wasted no time in getting back to what it does best: expanding. While Starbucks opts for mostly company-owned stores worldwide, Luckin's approach involves both self-operated outlets and franchises, enabling it to rapidly grow — the Xiamen-based coffee company is now setting its sights on the rest of the world, going global for the first time with 14 stores opening in Singapore this year.
