The arrival of Chinese coffee giant Luckin Coffee in Singapore has created a challenging environment for local, independent cafe operators. Luckin entered the market with an aggressive strategy, offering coffee at a promotional price of S$1 per cup with a rapid two-minute service time. This pricing model caused immediate disruption for nearby small businesses, with some owners reporting a 15% drop in sales during the initial months of the chain's operation.

However, the long-term impact on local businesses appears to be stabilizing. According to Chew Yit Shan, owner of the neighbourhood cafe Folk Yard, the initial decline in revenue was temporary. As the promotional period concluded and the initial consumer hype surrounding the chain subsided, regular customers returned to their preferred local establishments. This suggests that while large chains can capture market share through price-based incentives, independent cafes in Singapore continue to rely on customer loyalty and established relationships to maintain their operations against international competitors.