Starbucks CEO Brian Niccol praises Luckin Coffee’s rapid innovation

"The one thing that they probably have done a nice job of is just an unbelievable pace of product innovation," he said at the Fast Company Innovation Festival in New York earlier this week, as reported by Business Insider.

"It sets the tone for, 'Hey, we cannot be complacent on flavors and drink combinations.'"

Brian Niccol speaks onstage during the Fast Company Innovation Festival 2025 on September 16, 2025 in New York City. Photo by Getty Images via AFP

Luckin’s menu has drawn attention thanks to its unusual beverage options like pineapple cold brew and coconut lattes, most of them offered with steep discounts of 30-50%.

The Chinese company’s rapid expansion has helped it overtake Starbucks as the top chain in China. The Chinese chain now has 26,000 locations, most of them in China, where Starbucks has around 8,000 stores, according to CNBC.

Luckin stores operate without cashiers, and customers must place orders on its mobile app. This is a different approach to Starbucks, Niccol said.

"They've done an interesting job on how they've turned the app into the only way you can interact with that business. It's a different approach. I don't think it's the right approach for us."

The CEO highlighted Starbucks’ commitment to enhancing in-store experiences and comfort over purely digital interactions.

In July, Starbucks announced that it was phasing out its mobile order-only stores.

Niccol also said that Starbucks is experiencing a "nice recovery" in China, having brought down prices of some drinks.

The company is seeking a local partner to manage its Chinese operations. It eyes to open "thousands" more location in the country.