Starbucks has been operating in China for almost 20 years. However, Luckin Coffee, a Chinese startup coffee company is looking to topple Starbucks off the top spot. Luckin Coffee has always implemented delivery as a critical part of its coffee services. On top of this, while Starbucks has aimed to cater to the wealthy, Luckin Coffee has appealed to the masses. The Wall Street Journal reported that the battle to bring on-demand coffee to China shows the importance that consumers place on delivery—especially for Western companies. It also said that Starbucks planned to open around 600 stores in China this year, to bring its total up to about 4300 stores. Meanwhile, Luckin Coffee plans to open around 2500 stores, bringing their total amount of stores up to around 4500. If this happens, Lucking will not only charge less for their coffees on average, but they will have more stores with a broader delivery footprint.
STARBUCKS FACES COMPETITION
