$1.99 Coffee vs. Warm Welcome

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It all started with a sign.

This week, as I came out of the PATH at 33rd Street and started my walk to the office, I spotted a coffee shop called Luckin that I had never seen before. The sign outside said that if I downloaded their app, I could get a coffee for $1.99. (They had me at $1.99.)

So, I figured why not? Let me just try it out. They seemed to have some specialty lattes that were worth a peek.

I walked in and saw two people behind the counter. All the customers were super quiet, just standing around looking at their phones.

As I went up to the counter, the gentleman said, “Is this your first time here? (To which I replied yes). You can order at the kiosk or download the app and order through there.” The kiosk, I realized, was tucked inconspicuously by the entrance, so I downloaded the app. Then he went back to printing out digital orders and fulfilling them.

What was missing

To be clear, I love ordering ahead, and I do it a lot, including at Starbucks. But at Starbucks, I have a choice. I can grab my mobile order and go, or I can stay and relax. That’s why they call it the “third place”.

This felt different. The vibe in the place was dark, including their choice of dark browns and blues for the color scheme. It wasn’t the kind of room where you want to stay. Everything about the place told me to grab and go, even the few seats, which looked like uncomfortable bar stools.

When you walk into most coffee shops, you smell fresh coffee beans, hear music that sets the vibe, and meet people who welcome you in.

This place was the exact opposite. I almost walked out, but I decided to give it a try anyway. I ordered a sea salt caramel latte. It was okay, but I’m not sure I would go there again. The $1.99 got me through the door, but it didn’t give me a reason to come back.

(Side note, for a fun coffee vibe, definitely try out 787. Shout-out to my NuevaYol coffee.)

Then I did my homework

(Because of course I did. I’m a good student.)

I figured I had stumbled onto a new little neighborhood spot, but Luckin is China’s biggest coffee chain, with more than 24,000 stores as of 2025, built around this exact app-first model.

So, before I get too nostalgic about coffee beans and music, here’s the honest part. This model clearly works for a lot of people. And some mornings, I want exactly that. I want to get in, get out, and get to work.

But I keep coming back to one question. What would make me choose it?

Once the $1.99 deal is gone, the menu prices aren’t far from Starbucks or a Gregory’s. So what’s left is speed, novelty drinks, and a steady stream of app coupons. All of those are real, but none of them makes me feel like I belong anywhere.

Interestingly, Starbucks tried its own version of this. It launched pickup-only stores in New York in 2019, then decided to close them in 2025. Its CEO called the format “overly transactional and lacking the warmth and human connection” that defines the brand.

But Starbucks didn’t give up on digital. It kept the app, which I still use and enjoy, and moved pickup back into its cafés.

Where is the balanced connection?

I walked away wondering how you balance digital connection with human connection. The more I thought about it, the less I liked the word. Balance makes it sound like more of one means less of the other.

Maybe the better question is, which moments belong to which? To me, it comes down to three things:

  1. Let digital take the friction. No one will miss waiting in line, fumbling to pay, or placing the same order again.
  2. Let people own the moments that matter. A person should be there for the first visit and for the day something goes wrong. An app can remember my order, but only a person can be glad to see me.
  3. Let the space say welcome. The smell, the music, and the lighting speak before anyone else does.

Now picture that same counter with one small change.

“First time here? Welcome! What do you usually drink? Let me show you how the app works.”

It’s the same app and the same coffee, but a completely different morning.

The same question shows up at work

This goes well beyond coffee. Banks, insurers, and retailers are all deciding what to hand over to a screen, and AI is only speeding that up. You can automate the order, but you can’t automate the welcome.

So here’s my challenge for you this week:

Pick one experience you own, at work or at home, find the moment where a person used to be, and ask yourself what you put in their place.

Did you remove the friction, or did you remove the welcome?

Where has a digital experience felt just right to you, and where has it left you cold?

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