Chinese fast-food chains Luckin Coffee and Mixue Ice Cream & Tea are expanding into the United States by opening new stores and offering deep discounts [1].
This expansion represents a strategic shift as these brands apply scaling and digital ordering lessons learned from American giants like Starbucks, McDonald’s, and Nike [1, 3].
Luckin Coffee began its U.S. rollout in 2023, establishing an initial location in Lower Manhattan [1, 2]. To attract new customers, the chain is utilizing an aggressive pricing strategy. For example, an iced coconut latte has been priced at $1.99 [1], which represents a 69% discount compared with the regular price [1]. The company's mobile app further incentivizes users by displaying six active coupons [1].
Luckin enters the American market with significant momentum from its home country, where it already outsells Starbucks in terms of sales volume [2].
Similarly, Mixue Ice Cream & Tea is targeting multiple U.S. markets, with a particular focus on California [1, 5]. Mixue brings an immense global footprint to the expansion, operating more than 47,000 stores worldwide [4].
Both companies said they are applying the rapid scaling and digital-first models pioneered by U.S. corporations to capture market share in the West [1, 3]. By combining high-volume operations with steep promotional pricing, these brands aim to disrupt the existing coffee and dessert landscape in major American cities.
“Luckin Coffee and Mixue Ice Cream & Tea are expanding into the United States”
The entry of Luckin and Mixue into the U.S. signals a reversal of the traditional globalization pattern, where American franchises previously dominated international markets. By leveraging the same digital-first and aggressive pricing strategies developed by U.S. firms, these Chinese brands are attempting to undercut established domestic competitors on price and convenience.
