Chinese Beverage Chains Spread Across the US, Challenging Starbucks' Dominance
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Chinese Beverage Chains Spread Across the US, Challenging Starbucks' Dominance
"Starbucks opened its first store in China in 1999, when drinking coffee in a Western-style café was still a novel idea to many locals. But in the years since, homegrown coffee and bubble tea brands like Luckin Coffee, Heytea, Chagee, and Mixue have gradually chipped away at Starbucks' share of the Chinese market. Now, they are crossing the Pacific, hoping to compete with the Seattle-based coffee giant and other American beverage chains on their home turf."
"We wanted to experience-and taste-what these Chinese brands are offering American consumers. Over the past week, we visited two Luckin coffee shops and one HeyTea store in New York City, as well as one Chagee location in Los Angeles. What we found was a new and different beverage culture taking shape, built around speed, smartphone apps, and premium flavors. The arrival of these Chinese chains comes at a difficult moment for Starbucks."
Starbucks opened in China in 1999, while Western-style café coffee remained novel to many locals. Homegrown brands such as Luckin Coffee, Heytea, Chagee, and Mixue have steadily reduced Starbucks' Chinese market share and are now expanding into the United States. Two Luckin shops and a HeyTea in New York, plus a Chagee in Los Angeles, illustrate a beverage culture emphasizing speed, smartphone apps, and premium flavors. The expansion coincides with challenges for Starbucks, including global store closures, layoffs, union activity, and plans to sell a majority stake in its China business. Luckin emphasizes an app-first model and rapid U.S. growth.
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