China’s Coffee Clash

A clash of the coffee titans is currently underway in China. Starbucks and homegrown coffee chain Luckin Coffee are in the midst of battling it out for the title of China's favorite coffee chain. Starbucks currently holds the title, but Luckin is spending millions to lure customers to the brand. The Chinese coffee brand is undercutting Starbucks with steep discounts and the promise of a new store opening every three hours.

Known as a coffee kitchen, Luckin stores are only the size of a studio apartment with no tables and chairs or even cash registers. Customers simply prepay using the company’s app on their smartphone and then quickly come and pick up their coffee.

Earlier this year Luckin announced plans to open a further 2,500 stores which would bring its total to 4,500. Starbucks currently operates 3,600 stores throughout the region.