In China's battle of the lattes, Luckin Coffee keeps beating Starbucks

Luckin Coffee, a Chinese coffee chain, has reported higher sales than rival Starbucks in the Chinese market. In 2023, Luckin generated $3.5 billion in total net revenue, an 87% increase from the previous year. The company’s unaudited net income for 2023 reached $401,000, compared to $67,830 in 2022. Luckin has over 16,000 stores in China, while Starbucks has around 7,000. China’s coffee consumption has been growing, with a significant demand from the younger generation. Luckin aims to sustain its growth and market share through its pricing and expansion strategy. Despite the competition, Starbucks maintains higher profitability than Luckin due to its slower expansion. Both companies are introducing new products to cater to local tastes.