Coffee Market

Luckin Coffee has officially launched in the United States, opening its first two stores in New York City. This move marks a significant expansion for the Chinese coffee giant, which has overtaken Starbucks domestically. The strategic Manhattan locations are positioned to attract the Chinese student demographic. With over 24,000 global stores, Luckin’s U.S. entry escalates the international coffee competition.

Hillhouse Capital is reportedly leading a potential acquisition of Starbucks China, with a management roadshow recently completed. Goldman Sachs values the business at $5-6 billion. The deal follows prior reports of Starbucks seeking strategic investors. Starbucks China generated $3 billion in revenue in 2024, but profit and growth slowed. The acquisition is driven by competition from domestic brands like Luckin Coffee, prompting Starbucks to expand into lower-tier cities and rural markets.