by Nigel Ong
American businesses generally can break into many countries worldwide and then do well. However, sometimes, you see some local heroes rise up and beat them back.
Jollibee beat KFC in the Philippines, VKontakte kept Facebook at bay in Russia, and now we have Luckin. This coffee chain was able to actually beat Starbucks in China, with more shops than the latter.
Luckin recently expanded overseas, first opening in Singapore in 2022. I thought it would be cool to visit it to see what made it capable of beating out Starbucks in China.
About Luckin Coffee
Luckin Coffee is a Chinese coffee chain founded in October 2017. It was founded by Jenny Qian to challenge the coffee market in China, which, at the time, was largely dominated by Western chains like Starbucks.
What made Luckin Coffee unique was the heavy adoption of technology. Rather than relying on having a lot of Baristas to take orders, it relies on apps and machines.
In January 2019, Luckin Coffee opened its 2,380th store, a remarkable feat considering it is barely two years old. At this point, Starbucks has over 3,000 stores in China.
However, Luckin Coffee faced significant challenges. In April 2020, it was embroiled in a scandal. It admitted to overstating its 2019 sales by approximately $310 million.
Despite this setback, Luckin Coffee retained a substantial market presence in China. Once the waves were back stable, they continued to grow. It finally surpassed Starbucks in China in June 2023, opening its 10,000th store.
Singapore was Luckin Coffee’s first overseas destination, aiming to expand to Southeast Asia, India, and the Middle East. Unfortunately, there is not much information about it coming to North America.
General Appearance
The Luckin Coffee store I visited in Singapore is probably not their largest, but a good enough example to show how it works.
The store’s external look has a simple, minimalistic design to it. There’s only the deer logo, with a huge ‘Luckin Coffee’ sign. It has the vibe of a tech store rather than a coffee shop.
As I walked in, I noticed that it uses bright white lights instead of warmer, yellow ones. This further gives me the vibe of a commercial tech shop.
If you notice, Starbucks tends to use yellow lights, which helps generate that ‘homely’ feel.
The furniture and interior decor is minimal but functional. You get plastic seats without upholstery instead of the large couches you regularly see in American coffee shops. There are also some cushioned seats, but they are not made to be plush and enjoyable.
The tables are also small and probably not designed for you to place more than a couple of cups of coffee.
To me, the interior deco has a very different approach than Starbucks. I remember Howard Schultz (former CEO of Starbucks) talking about turning it into the ‘Third Place’ – where people socialize after home and at the workplace.
As a result, Starbucks made their stores’ homely.’ You see the plush couches, wood furniture, warm lighting, soft music, magazines, and coffee tables. People come to Starbucks, order coffee, and sit there and chat away for hours.
With Luckin, I do not think they go with this approach. Instead, it caters more to the fast lifestyles of the urban Chinese people. The seats are not meant to be sat on for hours, but for customers to rest while waiting for their pick-up drinks.
Instead of large tables with seats to make socializing comfortable, Luckin gives small tables with small seats so customers can drink coffee while interacting with their phones or laptops.
Ordering Process
After observing their shop interior, I ordered my coffee at the counter. I expected to order my drinks like in Starbucks and was instead pointed to the app by the Barista.
I forgot that Luckin is a tech-forward coffee shop. I pulled out my phone and scanned the QR code. There is an app for you to order your drinks. I installed it and then launched it.
There, I start by choosing the coffee shop location. If location tracking is turned on, it should automatically show the one you are in.
If you intend to pick it up, you can also order ahead using this app. Select the location you want to pick up, order, and drop by to get your drink.
The menu selection is also quite simple. Luckin does not have too many drinks inside the app, unlike Starbucks. I counted that there should not be more than 30 drinks inside the app, making it quite easy to order.
I ordered a regular Americano and paid through the app, too. I was then shown a QR code with the instruction to scan it when picking up my drink.
Ordering coffee in Luckin would be an introvert’s paradise – I do not have to speak a single word to the Barista to get my coffee!
Brewing Process
Just as I cleared my payment, I could see the screen in front of the Barista beep, probably with my order. The Barista gets to work.
Again, this is different from Starbucks in so many ways. Usually, you can see your Starbucks barista hand-brew the drinks. They will manually grind the coffee, fill up the espresso portafilter, pull espresso shots, steam milk, and more.
With Luckin, none of that happens. Instead, the Barista simply presses a few buttons, and some drinks come out. Perhaps since I only ordered an Americano, the preparation process is simple.
I ordered a couple more Lattes to see if this is true. Again, the Barista pressed several buttons, and the drinks were ready. Of course, with Latte, he manually poured milk into the drinks. But that’s all.
Looking at the packaging, the milk seems to be brought in from China, and not locally sourced.
I peeked at the coffee machine, which is unlike the ones you regularly see in coffee shops. These are more of a latte machine type than those in self-serve coffee stations. The maker is Schaerer, a Swiss coffee machine maker.
I think Howard Schultz would be screaming in horror here, as this may remind him of why Starbucks almost collapsed in 2008 – coffee made with no soul and effort. Just press a couple of buttons, and that’s it.
How Does Luckin Coffee Taste?
My cup of Americano is served in a takeaway paper cup, despite my saying that it is for sit-in drinking, unlike Starbucks, where you can ask for your coffee in ceramic mugs, not with Luckin.
I opened my plastic lid and saw my cup of Americano with a little bit of crema floating on top. My initial feeling is that the coffee is lower in quality since it is not as ‘hand-made’ as your regular espresso coffee, but I try to be objective here.
The coffee smells fragrant and not as strong. I believe this is a light or medium roast coffee. I can pick up doses of herbal and earthy notes, which makes me think of Indonesian coffee beans, specifically Sumatra.
Drinking the coffee also gives me about the same flavor experience. Aside from the herbal and earthy notes, there may be some floral ones, but not as prominent as the herbal note. Perhaps there are some Ethiopian beans in Luckin’s blend?
There is definitely less smoke and intensity in the coffee than your regular McCafe, Dunkin, or Starbucks Americano. It has the intensity of a lighter roast, possibly closer to a breakfast blend.
I figure this may be why Luckin Coffee can do so well. Perhaps by toning the intensity of the coffee down, they made coffee more drinkable for typical Chinese palates – who may be more used to the gentle flavors of tea.
However, suppose you are used to American or Euro-style coffee. In that case, Luckin’s Americano will probably leave you hanging and wanting more.
It may pass as a Breakfast blend or lazy weekend morning coffee, but you may not want to rely on it to beat your afternoon, after-lunch slump.
Aside from the Americano, I also ordered a couple of their signature Lattes. They also have the same vibe, generally less intense, with a weaker punch than what you get in Western coffee chains. They taste more like bubble tea to me, than actual coffee.
Luckin Coffee vs. Starbucks
Most of us have been to Starbucks, so we are familiar with what the coffee shop is like. I think comparing my Luckin Coffee experience with Starbucks would help you understand it better:
Sociability vs. Speed
Starbucks has a social experience in its coffee store – you view it as a socializing space with your friends and family. You talk to the Baristas while ordering; they are also friendly and invite you to join their tasting session.
Luckin? None of those. The Barista was busy, and rather than advising me on the ordering process, he just pointed at the notice to download the ordering app without muttering a word or looking at me.
I paid online and picked up my drinks without talking to the Barista.
Starbucks, with a more social approach, gives you a homely feel. It is also less intimidating, especially if you are not tech-savvy. The trade-off? They may not make your drinks as fast.
With Luckin, the process is fast. The Barista can focus on pumping out drinks rather than taking orders or entertaining customers with small talk. However, it can feel ‘robotic’ and transactional too.
Efficiency vs Effort
Luckin has a very sharp focus on efficiency, to produce as many cups of coffee as possible, and fast. This may be the reason for its tech-heavy approach of ordering through apps.
It also means their Barista brews using automated machines, not regular espresso machines.
Some may appreciate the efficiency, especially if you are the result-oriented type since it means you can get your coffee fast.
However, if you are a process-oriented person, you may want or enjoy seeing the Barista brew the coffee manually. You will dislike how Luckin makes your coffee then.
Hang-Out Spot vs Pick Up Station
Starbucks is designed to be the ‘Third Place’ – where a person would spend their day. They go to work, drop by Starbucks to hang out, socialize, chill with a book, and then go home to rest.
As a result, Starbucks is designed to be comfortable. Plush chairs, warm lighting, soft music, coffee tables, and more.
Luckin is designed to be a fast, pumping coffee joint. You get your coffee fast, enjoy it, and then move on.
This means the shop does not have that home feel but a modern, commercial shop vibe. You sense efficiency, speed, and good service from the Baristas to pump out your drinks.
I do not mean you cannot hang out in a Luckin Coffee store, but it would not be as nice as if you do the same in Starbucks.
Taste
Starbucks generally has a stronger coffee flavor, probably due to the type of roasts used. The beans are usually roasted darker, making the coffee more intense. This may suit typical coffee drinkers in North America, Europe, or the Middle East.
Luckin Coffee seems to be serving lighter roasts, which means the coffee tastes light and less intense. This is probably adjusted to Chinese drinkers who are used to drinking tea.
However, light taste does not mean the beans are inferior in quality. Luckin claims to serve award-winning coffee beans, and freshly ground ones too.
Should You Try Luckin Coffee?
Luckin Coffee succeeded in China for a reason, and I think it is because its services were run in such a way that it suits the fast-paced urban Chinese lifestyle.
The taste is also adjusted to local palates, helping it to sell to those who cannot stand those intense Western coffees. In fact, I can easily see typical Chinese bubble tea drinkers enjoying a Luckin Latte.
You may enjoy Luckin Coffee most if you appreciate efficiency over everything else. Suppose you think talking to a Barista to order your coffee or using a manual espresso maker to make coffee wastes time. In that case, Luckin Coffee will be a paradise for you.
You could also enjoy Luckin Coffee if you like soft, herbal, and floral coffee, as it seems to be what was served to me.
Nevertheless, it is a different experience compared to the regular Western coffee shops, and you should at least try it once.