Core Insights - Luckin Coffee has officially opened its first two stores in Manhattan, New York, on June 30, 2023, adopting a self-pickup model similar to its operations in China [2] - The menu features 44 items priced between $3.45 and $7.95, including popular drinks from China and new flavors tailored for the U.S. market [2][4] - The pricing strategy in the U.S. is higher compared to local competitors like Dunkin', but competitive with Starbucks [3][6] Pricing Strategy - The prices for core products at Luckin Coffee are generally on par with Starbucks, with some items priced slightly higher [4][5] - For example, a regular Americano is priced at $4.45 (approximately ¥31.91), which is 6.3% lower than Starbucks' $4.75 (approximately ¥34.06) [5] - Conversely, a latte at Luckin is priced at $5.75 (approximately ¥41.23), which is 3.4% higher than Starbucks' $5.95 (approximately ¥42.66) [5] Comparison with Competitors - Compared to Dunkin', which offers a medium Americano for around $2.50 (approximately ¥17.93), Luckin's prices are significantly higher, reaching 50% to 100% more for similar products [6] - Luckin's pricing aligns more closely with Starbucks, while being substantially higher than Dunkin's mainstream pricing [6] Promotional Strategies - To attract customers, Luckin Coffee is offering promotional pricing, allowing users to purchase any drink for $0.99 (approximately ¥7.09) through its app until 2034 [7] - On opening day, customers received multiple discount coupons, including $1.99 (approximately ¥14.27) drink vouchers and various 50% off coupons, aimed at increasing customer retention and market penetration [7] Operational Challenges - The higher pricing in the U.S. is attributed to several factors, including significantly higher rental costs in prime locations, a less adaptable supply chain, and elevated labor costs compared to China [7] - The company's strategy focuses on premium product value to justify its mid-to-high pricing in the U.S. market, which remains to be tested for success [7]