I think Luckin Coffee $LKNCY , aka. Starbucks killer, the coffee company that force Starbucks $SBUX to divest it's share in China, expansion in the U.S. won't be too smooth.

Its value proposition in China is basically the same as Starbucks in the U.S. and Japan: both sit in the “affordable premium” category.

Luckin isn’t really a cheap coffee option anymore in China. There are plenty of coffee chains offering cheaper options, such as Cotti, Lucky Cup and Guming.

I think one point that might be overlook, especially for people not familiar with developing countries, is that Starbucks’ value proposition changes a lot from market to market.

For instance, in Taiwan in its earlier years, and still today in China and many other developing countries, Starbucks is positioned more like a high-end coffee brand. A cup of Starbucks can cost more than one hour of wages, or half a day in countries in Southeast Asia.

That higher-end positioning is exactly why Luckin has been able to undercut Starbucks so aggressively in China.

But what people should pay more attention to with Luckin is its speed of product innovation. The company launched 140+ new drinks in 2025 alone. That level of execution is very different from Starbucks.

I also think Luckin is more focused on being a broader beverage company than Starbucks. Compared with Starbucks, it has many more non-coffee-oriented products, and its best-selling coffee are not traditional coffee choices like traditional lattes or Americanos, but more flavor-driven beverages such as Coconut Latte, Butter Latte, and Jasmine Tea Latte.

Will probably share more observation on this topic.