Luckin Coffee Launches Cashless Café in Beijing, Files Lawsuit Against Starbucks

Beijing slowly marches on toward its self-service future, and for those who don't have a smartphone but do require immediate cafeination, the launch of Luckin Coffee might be the last straw.

READ: Step Into the Cashless Future With Beijing’s Unmanned Stores

Unlike the similarly app-based Coffee Box which does not operate brick and mortar outlets but instead delivers their coffee after customers order via their WeChat account, Luckin Coffee does have stores and so customers can choose to pick-up or have their joe delivered.

Founded last November, Luckin Coffee already has over 45 locations in Beijing and approximately 400 outlets in 13 cities across China. Within their first four months of operation, they had served 1.3 million customers 5 million cups of coffee, according to Huxiu and TMT.

Originally bagging a RMB 1 billion start-up fund, Luckin Coffee has made it clear that they intend to replace Starbucks in mainland China, recruiting major movie stars like Tang Wei and Chang Chen to star in their commercials. Their intentions and huge expansion in China has also been laid bare this week after Luckin Coffee filed a lawsuit against Starbucks, saying in an open letter released on May 15 that the Seattle coffee giant had violated antitrust laws on account of it having signed exclusivity contracts with property owners disallowing other coffee related businesses to rent vacant spaces (see letter in full below). So far, Starbucks has not responded to Luckin's allegations.

Looking past the ongoing, albeit one-sided, commotion and to what really matters – the coffee – at RMB 21-27 a cup, Luckin is cheaper than Starbucks and customers are further incentivized to jump onboard by receiving a free cup of coffee upon download of the app.

Our nearest outlet was on the second floor of Topwin Center, where the staff patiently told us to order online first (and redeem the voucher via the app). Once the coffee was ready, we received a notification to go pick it up.

Given that there is no cash, WeChat, or Alipay transaction involved at the café, all the staff must do is brew coffees, and when necessary, deliver. The store uses fresh Arabica beans from Ethiopia, and the latte we ordered (RMB 24) had a strong roasted flavor along with delicious and smooth foamy milk. All in all, a good coffee.

Right now, they currently have a buy two get one free promotion or buy five and get five free, tempting the office-bound among us to buy in bulk. These elements mean that if Luckin Coffee is able to perform consistently it may indeed become a solid choice for Beijingers.

Luckin Coffee
Daily 10am-9pm. 2/F, Topwin Center, Gongti Beilu, Chaoyang District (186 0135 7302)
瑞幸咖啡：朝阳区三里屯工人体育场北路通盈中心2层

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Email: tracywang@thebeijinger.com
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Photos: Tracy Wang