What’s going on here? Chinese coffee chains Luckin and Cotti are expanding into the US – and their famously cheap prices could turn a certain American stalwart green with envy. What does this mean? A barista coffee a day is enough to burn a hole in your budget, and that’s before adding copious amounts of syrup or – gasp – ice. ☕️ It’s no wonder Luckin and Cotti won over China’s caffeine addicts by keeping their prices palatable – along with their coffees. The pair are known for crafting novelty flavors, like Luckin’s alcohol-infused latte that sold five million cups in a single day. 🇺🇸 Now, the duo want to spread the buzz in the US. Luckin’s looking to start in New York City, following Cotti’s recent opening of stores there. 💸 Both plan to keep their famous discounts and cheap prices in the US. Case in point: during its stateside launch, Cotti offered first-time customers 99-cent coffee in exchange for downloading its app. Thing is, labor, rent, and payment systems cost more in the US than China – so there’s no guarantee that they’ll be able to keep their cups of Joe priced low. Why should I care? For markets: Copy and paste. Chinese firms in general have grabbed big chunks of the market by selling their products at unbeatably low prices – sometimes less than they cost to make. It’s a strategy that burns through cash, leaving the problem of profit for another day. 📦 Temu and Shein are a perfect example: the pair did exactly that to take on Amazon. The bigger picture: Someone pass the sugar-free sweetener. Spare a thought for Starbucks. The American firm said this week that it’ll cut prices in China – its biggest market besides the US – to compete with Luckin and Cotti. But at the equivalent of $3.20, a Starbucks Americano may still leave a bitter taste compared to Luckin’s $1.95 one. And now, Starbucks might need to compromise its stateside margins too… | 