China’s largest coffee chain just opened 20 stores in Manhattan, and its approach to beating Starbucks skips the register entirely

China’s largest coffee chain is making a serious push into the United States. Instead of copying Starbucks, Luckin Coffee is bringing a very different strategy to New York City. According to Food & Wine, the company now operates more than 35,000 stores worldwide. Around 20 locations have opened across Manhattan within roughly the past year. That rapid rollout shows Luckin is ready to challenge established coffee brands on their home turf.

Founded in Beijing in 2017, Luckin Coffee was designed around a digital-first operating model. Its stores are cashierless, meaning customers place orders through the Luckin Coffee app or by scanning a QR code instead of ordering from a cashier. Baristas still prepare each beverage and hand it to customers at pickup, but nearly every part of the ordering and payment process happens digitally. The company also relies heavily on app-exclusive promotions and coupons to encourage repeat visits.

However, Luckin is not positioning itself as a budget coffee chain. A medium flavored latte is priced between $6.45 and $6.95 before discounts, while a cold brew costs $4.85. Those prices are comparable to Starbucks and many independent coffee shops. Instead, the company’s competitive edge comes from its streamlined ordering system, fast service, and emphasis on high customer turnover.

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Luckin’s stores are built for customers who want to grab a drink with as little friction as possible. Since ordering and payment happen through the app or QR code, there is little need for conversation beyond collecting a completed order. The minimalist store layouts also typically feature limited seating, reinforcing the brand’s focus on quick pickups rather than long visits.

That approach stands in contrast to the strategy Starbucks popularized over the past several decades. While Starbucks has long marketed its cafés as places where people can work, study, or socialize, Luckin prioritizes efficiency and convenience over creating a destination for customers to linger. The company is aiming to serve more people in less time by keeping the in-store experience simple and digitally driven.

For now, Luckin’s American presence remains focused on New York City. Still, operating more than 35,000 stores globally gives the company the resources to expand quickly if its US strategy succeeds. How American customers respond to a cashierless and app-first coffee experience could decide how soon Luckin moves beyond Manhattan.