Luckin Coffee (LKNCY) enters the U.S. market with New York City stores, rivaling Starbucks (SBUX)with $1.99 coffee deals.

The number of coffee shops in the US has topped over 40,000. That is likely to grow as demand continues to jump.

Chinese chain Luckin Coffee opened its first two U.S. locations this week, betting that mobile-only ordering and creative ...