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Chinas biggest coffee chain just opened stores in the U.S. for the first time. Its business model is the antithesis of Starbuckss back to basics plan. Luckin Coffee has dominated the java-slinging business in its home country, where it overtook Starbucks as the largest coffee chain both by total sales and number of locations back in 2023. Now it’s setting its sights on the U.S., with its first retail stores officially open in New York City. Luckins rapid growth is a product of what it calls its technology-driven retail model. At most locations, the company operates without any cashiers, instead taking orders entirely through its popular mobile appa strategy that prioritizes convenience and speed above all else. Its a structure thats almost the direct opposite of the new business model at Starbucks under CEO Brian Niccol, which emphasizes human interaction and personalized touches as a core part of the coffee-drinking experience. [Photo: Luckin Coffee] What is Luckin Coffee? For American consumers, Luckins offerings are perhaps most comparable to those of Dutch Bros., covering a wide range of beverages, from specialty lattes and teas to refreshers, matcha, and a series of fruity Americanos. The prices are typically about 30% less than a Starbucks alternative. In a highly saturated American beverage market thats constantly vying to identify the next Gen Z drink craze, Luckins menu isnt exactly reinventing the wheel. However, its business model does represent a coffee shop experience that no American brand has yet to fully emulate. According to an analysis by the University of Pennsylvania’s Wharton School, Luckin Coffee’s founder, Jenny Qian, pulled inspiration for the shops retail model from popular ride-hailing services. Virtually all the companys transactions are cashless, given that the entire ordering and payment process is handled through the brands appsimilar to the way one might order an Uber or Lyft. While American brands like Dunkin, Dutch Bros., and Starbucks all have their own apps and mobile-ordering functions, none has made the plunge into a fully mobile-first strategy. We advocate a more convenient and rapid new retail experience, Luckins website reads. Users can purchase, pick up and take out coffee through our mobile app, completely changing the traditional coffee business mode[l]. Luckins simplified sales approach lent itself to an astronomical pace of growth. From January 2018 to March 2019, Whartons analysis notes, Qian and her team opened an average of 5.2 stores per day. The brands success was significant enough that in May 2019 Luckin made its first play at a U.S. presence by filing for an initial public offering. Just a year later, though, a U.S. Securities and Exchange Commission investigation revealed that the companys earning reports had been artificially inflated, causing Luckin to delist from the Nasdaq and fire Qian and six other executives involved in the scheme. In 2021, the company also filed for bankruptcy to recover from the $180 million in fines accrued during the legal proceedings. Six years later, Luckins new leadership team has pulled off an impressive financial turnaround. Per Luckins first-quarter 2025 financial report, the brand now boasts more than 24,000 locations, primarily across China, Malaysia, and Singapore (Starbucks operates roughly 40,000 locations globally and about 8,000 in China). Luckin also notched $1.2 billion in net revenue during the three months ending on March 31a 41.2% year-over-year increase. Meanwhile, Starbuckss sales in the region have stalled, with same-store sales down 8% in fiscal year 2024. Due to New Yorks prohibition on cashless businesses, its likely that Luckins first two stores are operating under some combination of app and in-person orders. The brand did not immediately respond to Fast Companys request for clarification on the stores operations, or whether Luckin plans to expand its mobile app model to other states in the U.S. [Photo: Luckin Coffee] Why Luckin Coffee is the anti-Starbucks At the same time that Luckin is perfecting its efficiency-first, in-and-out structure, Starbucks is working on backtracking to its former glory as a human-centric third place. Since Niccol took the helm at Starbucks back in September 2024, hes been working to address the brands image problemsa result of higher costs, longer wait times, and waning saleswith a plan he calls Back to Starbucks. In an interview with Fast Company earlier this year, Nccol shared that he believed Starbucks had veered off course as a business during the mobile-ordering era of the pandemic. I think it just really took a lot of the soul out of what this business is all about, Niccol said. To recapture Starbucks original magic as a sit-down coffeehouse, Niccol has been working on bringing back human touches like handwritten notes, warm, familiar ads, and a simplified menu that emphasizes coffee quality over beverage trend-chasing. So far, its clear that the turnaround wont happen overnight: In April, Starbucks reported financial results that even Niccol called disappointing, with revenue and same-store sales falling below investor predictions. While Starbucks de-emphasizes its mobile-ordering features, Luckins entire business model revolves around them. Even the two companies branding seems to underscore their opposing strategies: Starbucks embraces a warm aesthetic through its iconic dark green siren logo and color-graded advertising, while Luckins bright blue branding and stag logo feel more reminiscent of a tech company or bank than a coffee shop. Luckins entrance into the American market is poised to offer a case study in whether Niccols thesis around the importance of the coffee shop as third place holds true. Or perhaps what consumers really care about is how quickly they can pick up their iced matcha.
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E-Commerce
How far would you travel in search of a sweet treat? Bakery tourism is on the rise, with more and more people travelingsometimes across the globein search of the perfect flaky croissant or artisan bun they spotted online. Long lines arent a deterrent; in fact, theyre often part of the appeal. A crowd signals youve found the right spot. Jessica Morgan-Helliwell, 26, and her mother, Louise Church, 48, are two self-proclaimed bakery tourists. They visit at least one new artisan bakery every weekend and have even planned entire international trips around bucket-list pastry spots. Having that shared interest is really lovely, and we get to explore lovely places along the wayand eat some really good food, the pair told the New York Post. @loveeatdrinktravel A must-visit bakery in Prague for your pastry and coffee fix! If youre exploring the beautiful streets of Prague, @Artic bakehouse is an essential stop for breakfast or a coffee break. This artisan bakery is known for its sourdough-based pastries, made fresh daily with natural ingredients and a whole lot of love. The smell alone will pull you in from the street! We couldnt resist the classic chocolate croissant (flaky, buttery, and rich) and the almond croissant (sweet, nutty, and absolutely dreamy). Its the perfect quick morning bite before a day of sightseeing trust us, your taste buds will thank you! Multiple locations in Prague, with a cozy, minimalist vibe and top-notch coffee to match. #ArticBakehouse #PragueEats #PragueFoodie #BestBakeryPrague #PragueBreakfast #CzechPastries #CoffeeAndCroissant #EuropeFoodie #PragueTravelTips #WhereToEatInPrague #PastryLovers #AlmondCroissant #ChocolateCroissantDreams #SourdoughBakery #FoodieInPrague #praguecafeculture – R&B SOURCE – R&B SOURCE Theyre not alone. As younger generations swap binge drinking for early morning pastry runs, independent bakeries are having a major moment. Social media drives the trend, with itineraries crafted from viral videos documenting Paris croissant crawls, East London bakery tours, bucket-list eateries in Seoul, and taste tests of classic Filipino pastries. @k8prk v important research mission 1st place always goes to the most unassuming rando spots Bakeries included in experiment: Tranché, Leonie, Mamiche (attempted), Aux 9 bles dor #parisfood #croissant Zou bisou bisou – Gillian Hills The treats themselves are often inventive takes on the familiar: cube-shaped croissants, croissant-shaped cookies, pastries filled with fruit, or ones styled to look like fruit. Most are mouthwatering. Some are clearly engineered for the algorithm. @whatericacraves If you’ve been wondering if those viral fruit pastries you’re seeing all over the internet are actually worth the hype, I’m here to tell you they 100% are and you can grab them over at @Parisien Gourmandise in La Jolla (and they’re GF!!!) P.S. if you enjoy my content, be sure to hit share with your friends & family, and if you’re new here, I’d love to have you follow alongmy foodie journey at @whatericacraves – I so appreciate the support Now I’ve been seeing these fruit entremet’s all over my FYP and I honestly didn’t know if I’d like them, but was really eager to give them a try. If you’ve never had them before, it typically entails a crunchy outside, usually made of chocolate, with a sponge cake, mousse and fruit filling (that goes with whatever fruit shape they are). I saw that Parisien Gourmandises had them over in La Jolla, and If you’ve been you know this is an insanely good bakery, so I had high hopes. Sarah and I headed over and were NOT disappointed. We tried a variety of flavors including a NEW Blueberry one which I’ve never seen anywhere else and they were all fantastic. They weren’t too sweet and had perfectly balanced ratios of fillings. Plus, I love that it all tasted very fresh and natural vs artificial flavors. Them all being gluten free was just a big bonus. Check out all the flavors below and if you’re looking to try these, I highly recommend checking them out! So worth it. Flavors Lime Blueberry Lemon (Sarah’s favorite!) Strawberry Champagne Coconut Mango (my favorite!) Location: 7643 Girard Avenue Suite B, San Diego, California 92037 Hours: Mon – Fri 9:00 AM – 5:30 PM #entremets #entrement #fruitpastrycake #viralpastry #sandiegopastry #sandiegodesserts #lajollaca #lajollalife #sandiegofoodscene #frenchpastries #frenchdessert original sound – whatericacraves These viral baked goods rarely come cheap. But they reflect our growing appetite for small indulgences, a phenomenon known as the lipstick effect. Even during economic downturns, a splurge on an $8 almond croissant feels manageable in comparison with a pricey dinner out. Spending on small luxuries can also offer emotional benefits. Studies show that doing so can restore a sense of control, ease sadness, and create a sense of accomplishment. According to the British Baker website, 80% of Gen Zers say a daily sweet treat boosts their mental healtha continuation of what journalist Imogen West-Knights dubbed treat brain back in 2021 during the pandemic. Treats can act as a temporary Band-Aid over a deeper need, West-Knights wrote for the Financial Times. When we are very tiredsay, because were juggling homeschooling and a jobwhat we might really need is more sleep. But if we cant get it, a more easily available source of comfort might be chocolate or wine. Or, of course, a flaky, sugar-dusted pastry. Whether youre on a bakery crawl through Copenhagen or just visiting a new viral spot in your neighborhood, getting coffee and a sweet treat has become an event in itself. Any excuse to get out of the house and break bread.
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E-Commerce
One of the most positive legacies of the COVID-19 pandemic stretches across 26 blocks in the Jackson Heights neighborhood of Queens. The 34th Avenue Open Street emerged out of a New York City-sanctioned program in the early days of the pandemic that allowed neighborhood groups to temporarily close streets to car traffic and use the space for outdoor recreation and other purposes. In Jackson Heights, one of the early epicenters of the pandemic, the open street that emerged from this program became a kind of lifeline for the neighborhood. Now, after running strong for more than five years, a plan is taking shape to make the project on 34th Avenue, now known as Paseo Park, permanent. Paseo Park Current Residential Block [Image: Alliance for Paseo Park] The concept for the park was commissioned by the Alliance for Paseo Park, a volunteer group that has overseen the open street since the beginning, when it was little more than metal barriers at the end of each block. The group hired the architecture and urban design firm WXY to envision a more formal park space along the 1.3-mile length that includes a mix of recreational areas, seating and meandering zones, multiuse playspace for the 10 schools on and near the street, dense landscaping, paths for cyclists and pedestrians, as well as required emergency vehicle access areas. And because New York Mayor Eric Adams’s administration allocated $89 million in funding in 2022 to permanently build out the 34th Avenue Open Street, there’s a good chance this design concept will take shape. It could be a model for other neighborhoods in New Yorkand other citiesfor how to thoughtfully turn streets into neighborhood amenities. “There’s so many streets that are doing one thing, serving cars and parking,” says Rob Daurio, a senior associate and director of urban sustainability at WXY who led the 34th Avenue design project. “This is a big opportunity to really think ambitiously about how to provide more significant public space.” Paseo Park Conceptual Residential Block [Image: Alliance for Paseo Park] The need is acute. A report from New York City’s Independent Budget Office found that Jackson Heights has as little as two square feet of park space per resident. “It’s one of the lowest amounts of park space in the city,” says Daurio. The creation of the open street during the pandemic “did start to serve this really important and meaningful role for the community,” he says. WXY worked directly with the Alliance for Paseo Park on deep community outreach to learn what neighbors and users of the space wanted from a permanent version of 34th Avenue’s open street. The main priority was to ensure that the linear park would be safe and pedestrian first, provide room for the schools in the area, and use its planting to combat the effects of climate change. WXY interpreted those priorities in a range of active, passive, and school-centric areas. “We tried to come up with not just one solution, but a range of different block typologies that really did respond to the needs of the individuals in those particular areas,” Daurio says. The design concept is based on two main typologies that can define each of the 26 blocks in the park. WXY calls them the Super-Median and the Super-Sidewalk, and they essentially stretch out either the existing median in the street’s center or the sidewalks on its edges to create more usable public space. “Neither the sidewalk nor the median are big enough to actually take on a more significant use,” Daurio says. “But if you just widen them to enough space that you’re still allowing for your emergency access lanes and drive lanes, either of those options are viable to really create a more significant open space.” These designs also balance the need for the street to remain a viable path for transportationjust not for most cars. In the years since 34th Avenue became an open street, it has become a highway for cyclists and, to the chagrin of some residents, delivery drivers on fast-moving electric bikes, mopeds, and other alternative forms of mobility. It’s particularly a problem for the youngest users of the space. According to a survey of children that was conducted by a local Girl Scout troop, 66% of children said that the thing they wanted most to change about the open street was for there to be fewer cars and mopeds on the street. WXY integrated these concerns into their design by looking beyond the edges of 34th Avenue, proposing streetscape changes on another nearby arterial street, Northern Boulevard, which could be redesigned to handle more of the cross-neighborhood non-car traffic that has dominated 34th Avenue. “It’s a little bit of a Swiss Army knife of a street right now, where it’s a park, and it’s also a place for school drop-offs and a route for delivery people,” Daurio says. “We’re thinking about other opportunities to help take the burden off of 34th Avenue for doing everything.” Luz Maria Mercado, board chair of the Alliance for Paseo Park, says people in the neighborhood are enthusiastic about the design concepts. “Our neighbors see their feedback reprsented in ideas like creating a front yard for the six public schools that line Paseo Park, the addition of green space, and the flexibility of different design types for different blocks with different needs,” she says. Right now the design is still just a concept, and one that, despite official support from the Alliance for Paseo Park, is subject to input from the broader community. Claire Weisz, founding principal of WXY, says permanently closing any street to traffic, even one that’s had such a long and successful pilot stage, is going to be a challenge. “It’s not without its controversies, because, well, people love cars,” she says. This design concept is a hopeful wager that people will realize they love public space even more. “Were trying to do something thats never been done before in New York City, but is being done around the world,” Mercado says. “It is hard, but it is not impossible.”
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E-Commerce
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