Starbucks, alongside Dunkin’ Donuts, has been one of the two food franchises that have dominated the American coffee industry for decades. That said, Starbucks’ influence is waning; its anti-union practices, high prices, and its political allegiances do no favors towards younger generations. This has led to many customers looking for alternatives to get their fix.
While there is no shortage of small and local coffee shops, oftentimes people tend not to buy from them due to their high prices and inconvenient business hours. However, worthy competition is gaining ground within the United States from China, of all foreign countries.
Recent years have seen Chinese coffee chains finally make major headway in establishing physical locations within the United States. Luckin Coffee, China’s largest coffee chain, has already made major headway with its first physical location opening in New York City. Since its opening in June 2025, the location has generated a steady level of interest. Much of its success stems from its grab-and-go business model and app-focused payment.
While in-store options exist, Luckin Coffee aims to be primarily cashless and digital, resulting in minimal wait times. Additionally, the chain’s low prices help, and the quality of its products seems to retain customers and rake in new ones.
However, it isn’t just New York City or even limited to coffee; Chinese beverage chains have begun opening physical locations all across the United States recently, be it related to tea, or bubble tea, and succeeding.
If Starbucks wants to maintain its dominant business in the industry, it will need to do some much-needed introspection on its practices towards its workers and its service towards its customers.
