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China’s Luckin Coffee Is More 7-11 Than Starbucks — And That Could Be a Big Problem

From: time.com

Luckin Coffee has Starbucks worried. The Xiamen-based upstart has opened 2,370 coffee shops across 28 Chinese cities since June 2017. And on Monday, it announced plans for a Nasdaq initial public offering (IPO) of around $17 a share—which, if successful, could value the company at $4 billion.

It’s a clear challenge to the Seattle-headquartered global king of coffee, which entered China two decades ago and last year held over half of the domestic market, according to Euromonitor. But Starbucks’ China sales grew just 1% in the last quarter of 2018, down from 8% growth the year before. Analysts point to China’s slackening growth in general for the slowdown, yet few dispel the specter of Luckin looming over the green siren’s shoulder.

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