Luckin Coffee, China’s largest coffee chain, has officially entered the U.S. market.

Luckin’s opened two shops last week in New York City, and the locations may mark the start of stiff competition for Starbucks, reports CNBC.

In a press release about the openings, Dr. Jinyi Guo, the co-founder and CEO of Luckin Coffee, said the coffee shop’s entry into the U.S. market was “strategically important” for Luckin’s global expansion.

“Since entering the overseas market in 2023, we have grown to over 24,000 stores globally. Now, we are excited to introduce a diverse and unique coffee experience to American consumers, powered by our strong product innovation, advanced digital operations, and global supply chain advantages,” Guo said.

Founded in 2017, Luckin focuses on catering to younger consumers with mostly takeout and cashless payments. In China, Luckin’s beverages are about 30% cheaper than Starbucks, reports CNN.

Luckin also has 24,000 locations across Asia. In 2019, the number of Luckin locations in China surpassed Starbucks. According to CNN, Luckin’s revenue in China surpassed Starbucks for the first time in 2023, marking a “significant blow” for the Seattle-based coffee chain.

Luckin’s menu has the usual coffeehouse staples as well as a line of brightly colored “Refreshers” that mix coconut milk and fruity juices and cold foams. Luckin also offers an option to add fruit to its iced coffees.