Reference News Network, August 10 report: The UK's Financial Times website published an article by reporter Gregory Meyer from New York on August 3, titled "Starbucks Targets Chinese Competitor Luckin in Manhattan Coffee Rivalry." The following is the translated version:

In preparation for the opening of Luckin Coffee's store in Manhattan, Starbucks pasted its own advertisements on the windows of an empty shop across the street, highlighting its attention to this Chinese competitor.

This vacant shop is located at 757 Broadway, with Starbucks coffee logos, glossy posters featuring models and drinks, and the words "Hello, Summer" on both the front and sides. Above the subway station exit next to the Luckin store, Starbucks' advertisements are flashing on the screen.

Every customer entering this Luckin store cannot escape Starbucks' promotional campaign. This store is located at 755 Broadway, one of two Luckin Coffee stores opened in Manhattan in June. This is a step for Luckin to enter the U.S. market; a store employee told a reporter that more stores will open in August.

Two years ago, Luckin surpassed Starbucks in the number of stores and sales in China, becoming the largest coffee chain brand in China. The company based in Xiamen has now come to Starbucks' home ground, hoping to replicate this success - through a completely different operating model.

Luckin requires customers to order through its app, which collects a large amount of data on customer consumption patterns and offers coupons and discounts for larger orders.

Different from Starbucks, whose same-store sales have declined for six consecutive quarters, most of Luckin's stores in China have very few seats. The two Luckin stores in Manhattan have sparse chairs and benches.

Mobile orders and app orders are important but not the only sources of business for Starbucks, accounting for 31% of its U.S. transactions.

Under the leadership of CEO Brian Niccol, Starbucks will invest about $150,000 per store to renovate and add more comfortable seating to restore the appeal of Starbucks stores, making them once again a pleasant place for people to share coffee and drinks with friends and family.

Last week, Niccol announced that Starbucks will close 80 to 90 mobile stores, which only take pickup phone orders and have no seating. Niccol told analysts, "We found that this model has too strong a transactional attribute and lacks the warmth and personal touch that our brand is known for."

Data collected by Advan Research shows that Starbucks' measures to make its stores more popular are working: in the three months ending in June, the number of customers who stayed in the store for at least 30 minutes increased by about 5% year-on-year.

Thomas Paulson, head of market insights at the company, said, "The market is splitting into two parts. One is a group with strong transactional attributes, based on apps, without lingering, just taking it and going. The other is a group that comes in to experience the atmosphere and stays longer."

Last week, a QR code was displayed on the sidewalk signs outside the two Luckin stores in Manhattan, allowing people to scan and download the Luckin app, claiming that new customers can get their first order for just $1.99.

Rachel Maxwell, a college student doing an internship in New York, had just downloaded the Luckin Coffee app and bought a cold silk latte. She likes this model.

"New York's lifestyle is fast-paced. People are always running around. So sometimes, having a coffee shop like this is a good thing."

Outside a Starbucks store in Manhattan that only supports pickup mobile orders, Officer Julio Guadalupe expressed frustration over the news that such stores would be closed. This 46-year-old officer dismissed sitting in a café, saying it was "a bit pretentious."

"For guests who just want to grab a coffee and go, this model is especially suitable," he said when talking about the app-based coffee pickup service, "this is definitely the direction of development in this country." (Translated by Zhu Li)

Original: https://www.toutiao.com/article/7536848254307189288/

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