Starbucks is losing its prime spot among chains racing to meet China’s growing thirst for coffee. Luckin Coffee has surpassed Starbucks as China’s biggest coffee chain by sales and units, company reports show, a comeback for the Chinese company after an accounting scandal that stalled its growth. Big Western brands selling to Chinese consumers face rising competition from local brands, as consumers begin to show a preference for them. “I am very confident that is only the beginning," Starbucks China Co-CEO Belinda Wong said at the November investor event. She said: “Especially when they issue coupons, Luckin can be a half or a third of a Starbucks coffee."

Source: Wall Street Journal November 19, 2023 14:43 UTC