According to the BBC, Chinese coffee and tea chains are rapidly expanding into major cities around the world. Luckin Coffee, after entering Singapore in 2023, accelerated its expansion and opened five stores in Hong Kong on the same day in late 2024. In 2025, it further expanded into Central Hong Kong and New York’s Manhattan, with more than 20 outlets in Hong Kong by the end of the year. Its aggressive low-price strategy stands out: in Hong Kong, first-time users can get their first cup for just HK$15.9 — far below the HK$40-plus price of a medium latte at Starbucks. In some locations, Starbucks stores have closed and been replaced by new-style Chinese tea brands.
Luckin’s expansion strategy centres on a “takeaway-focused mini-store” model, relying on app-based ordering, cashier-less operations, and dense store placement to reduce costs. Experts note that as the Chinese domestic market nears saturation, overseas markets have become the main source of growth. In the US, Luckin is also offering a US$1.99 first-cup discount and introducing more localised products to boost competitiveness.
Other Chinese brands are expanding quickly as well. Mixue Bingcheng has opened nearly 5,000 overseas stores across more than ten countries; ChaBaiDao (TeaBae) has opened over 200 outlets in Malaysia and is increasing its market share in Southeast Asia through digitalised operations and low-price strategies.
Experts say the core appeal of these Chinese brands overseas lies in their “value for money” and “rapid product iteration.” Compared with Starbucks’ emphasis on the “third space,” Chinese brands better align with young consumers’ habits of “takeaway and on-the-go consumption.”