China’s Luckin Coffee expands US operations

China’s largest coffee chain, Luckin Coffee, has acquired US-based cafe operator Blue Bottle as it continues to expand in America.

The coffee chain has 30,000 locations in China, far surpassing Starbucks in the country. Its recent acquisition aligns with its strategy of offering affordable coffee options.

Last July, Luckin opened its first US store in NYC and tested $2 cold brews—nearly a quarter the price of Blue Bottle’s.

Luckin’s arrival comes as its primary rival, Starbucks, struggles to reverse declining global sales. Last November, it formed a $4 billion joint venture with Boyu Capital, giving Boyu a 60% stake in its retail operations in China.