{"text":[[{"start":8.83,"text":"It is unusual for a coffee shop opening in New York to make headlines around the world. The Chinese chain Luckin Coffee’s American debut earlier this summer is the culmination of an extraordinary turnaround story for a brand that had a fall from grace in the same city. But it has also garnered attention for what it says about the rising competitiveness of Chinese brands that leverage their country’s supply chain and manufacturing prowess to undercut western rivals."}],[{"start":40.31,"text":"Five years ago, the Chinese chain was publicly disgraced for fabricating sales ahead of its Nasdaq debut, a scandal that would have killed most brands. Luckin used the proceeds of that initial public offering to turbocharge growth in China, where it outgrew upmarket rival Starbucks to become the largest coffee chain by store count and revenue. It was helped by an economic downturn pushing consumers towards cheaper coffee. Now, it is coming after Starbucks in its home country."}],[{"start":77.03999999999999,"text":"Despite all that divides the US and China, their consumers have a surprisingly similar sweet tooth. Luckin’s signature coconut velvet latte drink has been a hit in New York. But that is about as far as the similarities go for the retail experience. The conditions that fuelled Luckin’s rapid expansion in China are not easily replicated across the Pacific."}],[{"start":102.66999999999999,"text":"In New York, the company is largely sticking to its proven formula: a digital-first model with a heavy emphasis on speed, convenience and data. There are a few adaptations, one person involved in the launch told me — machinery designed specifically for the US stores and local milk suppliers — but the core strategy is the same. Customers must order through the app, allowing Luckin to gather behavioural data and serve targeted promotions to encourage repeat orders."}],[{"start":137.26,"text":"This is not a coffee brand for connoisseurs. There are no baristas, no latte art and no cosy café interiors. Drinks are prepared quickly by automatic machines, with stores designed for pick-up or delivery. Luckin prefers to describe itself as a technology company that happens to sell coffee — one whose algorithms and logistics expertise can deliver growth regardless of the market. But this recipe book ignores the centrality of labour in its business."}],[{"start":169,"text":"Visitors to China often marvel at the seamlessness of its consumer experience. That platforms like Meituan can deliver anything from a $1 coffee to a tube of toothpaste within 20 minutes of ordering seems to many observers a uniquely Chinese triumph of technology."}],[{"start":191.23,"text":"But this marvel is hardly a product of technical prowess than an army of 84mn delivery workers, many of them young men from lower-income cities earning between Rmb20-30 per hour ($2.80-$4.17). In sharp contrast, the average delivery driver in the US makes about $19.52 an hour, according to the job site Indeed."}],[{"start":222.47,"text":"Luckin’s ability to leverage this workforce in China has been critical to its success. Its stores are often tucked into locations unlikely to attract walk-ins, inside banks, mobile phone retailers or dusty corners of shopping malls — cheap rentals ideal for delivery."}],[{"start":241.85,"text":"To its credit, Luckin has leveraged this infrastructure better than Starbucks, which has access to the same networks but has been slower to adapt. Luckin’s flavour innovation and partnerships with the likes of Duolingo and Pingu on themed drinks and merchandise have also struck a particular chord with Gen Z consumers."}],[{"start":265.78,"text":"In meetings with Chinese companies, I’m often greeted in conference rooms with a smorgasbord of Luckin coffees, an over-ordering ritual enabled by bulk discounts and promotions. It is difficult to imagine this habit taking off in the US."}],[{"start":284.33,"text":"Even so, early signs in America are encouraging. Online reviews have largely been positive and the brand is riding a wave of novelty. A $0.99 special for app downloads has driven foot traffic in Manhattan, where a speciality coffee can cost north of $10."}],[{"start":306.27,"text":"Yet signs of friction are emerging. Some New Yorkers are pushing back against Luckin’s app-only purchase policy, saying it violates the city’s regulation that mandates stores accepting cash, designed to protect shoppers without access to digital banking. The person involved in the launch said the company had found a way to be compliant. Luckin said its “internet-based transaction model has been legally validated to comply with applicable local laws and regulations”."}],[{"start":339.65,"text":"In the end, Luckin’s New York debut may tell us less about America’s coffee habits than about the limits of exporting a business model built for China’s unique conditions. For now, sugar sells. But without cheap labour and frictionless logistics, the buzz may not last."}],[{"start":370.95,"text":""}]],"url":"https://audio.ftmailbox.cn/album/a_1755131836_3268.mp3"}