China’s largest coffee chain Luckin launches premium store to take on Starbucks
Luckin on Sunday opened its two-storey Luckin Coffee Origin Flagship in Shenzhen, near the Hong Kong border.
Unlike its usual menu where an Americano or latte typically costs about US$1 to $2, the flagship outlet charges higher prices for a selection of pour-over and cold brew options.
Customers can pick beans sourced from Brazil, Ethiopia or China’s Yunnan province, reflecting a geographical sourcing “origin” theme commonly used by Starbucks and other coffee brands.
The second floor of Luckin’s new flagship in Shenzhen, China, that officially opened on Feb. 8, 2026. Photo courtesy of Luckin Coffee |
“This is more than just savouring a cup of coffee – it is the start of a genuine journey through global coffee flavours, which represents a pivotal elevation of Luckin’s corporate vision and mission,” Luckin chairman Li Hui said at the opening ceremony, as reported by South China Morning Post.
The store also offers specialty items including a “tiramisu latte” topped with a pastry, according to posts on Chinese social media platform Xiaohongshu.
Users have reported waiting between one and three hours for drinks since the soft launch on Jan. 20.
Covering 420 square meters, the outlet highlights intensifying rivalry in China’s coffee market for Starbucks.
In 2017, the U.S.-based chain selected Shanghai for its second Reserve Roastery “megastore,” three years after introducing the premium format in Seattle.
As coffee consumption grows in traditionally tea-focused China, Starbucks faces mounting competition from independent cafes and chains such as Cotti Coffee and Manner, which often price drinks at about half of Starbucks’ levels.
Luckin posted revenue of $1.55 billion for the three months ended Sep. 30, 2025, up nearly 48% from the same period a year earlier.
The Shenzhen flagship is promoted as Luckin’s 30,000th store, compared with a reported global total of 29,214 outlets as of Sept. 30.
Starbucks, by comparison, operates just over 8,000 stores in China and about 16,900 in the U.S., its largest market.
Expansion plans
Late last year, Luckin CEO Jinyi Guo signaled intentions to re-list the company in the U.S., without giving a timeline.
Established in late 2017, Luckin reached a $2.9 billion valuation within 18 months and went public on Nasdaq in May 2019.
Roughly a year later, it disclosed that much of its 2019 revenue had been fabricated, resulting in its delisting. Despite the scandal, the company kept most stores open and retained its brand name and logo.
Luckin has also drawn customers through a series of high-profile collaborations, including partnerships with premium spirits brand Moutai, the Minions cartoon franchise, and the video game Black Myth: Wukong shortly after its surge in popularity.
Luckin’s competitive edge lies in building strong private user traffic via its smartphone ordering app, said Mingchao Xiao, founder of Zhimeng Trends Consulting, CNBC reported.
Instead of ordering at a counter, customers place and pay for drinks directly through the app.
China’s coffee sector remains in a phase of rapid evolution, Xiao said, adding that younger consumers are increasingly open to new experiences and emotional engagement, which cross-industry brand tie-ups can deliver.
Last summer, it opened its first U.S. locations in New York City and launched its 10th city store on Feb. 6.
The company now operates 68 outlets in Singapore after entering the market nearly three years ago, along with 45 jointly run stores in Malaysia.
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