In a stunning turn of events, Chinese coffee chain Luckin Coffee has surpassed Starbucks to become the world's largest coffee retailer by store count. This remarkable achievement signals a dramatic shift in global coffee consumption patterns and retail strategy.
The Numbers Behind the Takeover
As of July 2025, Luckin Coffee operates over 18,000 stores globally, eclipsing Starbucks' 16,000 locations. The Chinese firm achieved this milestone through an aggressive expansion strategy that saw it open an average of 10 new stores daily at its peak.
Digital-First Strategy Pays Off
Unlike traditional coffee chains, Luckin built its empire on a mobile-first approach:
- 90% of orders come through its proprietary app
- Cashless transactions streamline operations
- AI-powered personalisation boosts customer retention
Challenges Ahead for the New Market Leader
While store numbers impress, analysts note Luckin must now:
- Improve profit margins per location
- Maintain quality during rapid expansion
- Differentiate in increasingly competitive Western markets
Starbucks, meanwhile, has pledged to refocus on premium experiences and barista craftsmanship to counter Luckin's quantity-driven approach.
