Why is the Luckin coffee store cashless policy under scrutiny?

A Reddit post said a Luckin Coffee store in New York refused cash payments, and staff claimed the chain is a technology company rather than a coffee company, so local rules requiring food retailers to accept cash do not apply. The customer called 311 to complain. Both New York Luckin locations run cashless, accepting only the official app or online payments such as Apple Pay and PayPal.

Reaction has been split. Some commenters worry the cashless model conflicts with local paying habits and raises privacy concerns, while others argue the stores function mainly as pickup points for online orders and may not be violating the law. The outcome matters for coffee store operators weighing app-only payment against cash acceptance rules. The case is still developing.

Recently, a Reddit post about a Luckin Coffee store in New York refusing to accept cash payments sparked heated discussion. The poster claimed that the staff cited Luckin being a tech company rather than a coffee company as the reason it was not bound by local regulations requiring food retail businesses to accept cash, and the person involved called 311 on the spot to file a complaint. Both Luckin stores in New York use a cashless system, supporting only the official app or online payments such as Apple Pay and PayPal. Some netizens worry that this practice is inconsistent with local consumption habits and may also raise privacy concerns, but others believe that Luckin stores are merely pickup points for online orders and may not necessarily constitute a violation of the law. Front Street Coffee will continue to follow the development of this incident.

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Recently, a post on the Reddit forum about Luckin Coffee's New York stores allegedly violating cash payment regulations stirred up quite a discussion among overseas netizens.

According to the original Reddit post, the poster described their recent experience of going to a Luckin store to buy coffee. Unexpectedly, the store employee clearly stated that cash was not accepted and told the customer that orders and payments could only be completed through Luckin's official app or official website.

The poster pointed out to the employee on the spot that under New York City's relevant administrative regulations, food retail businesses are obligated to accept cash payments, so Luckin employees' refusal to accept cash was illegal. However, the store staff responded that Luckin is not a coffee company but a technology company, implying that Luckin is not subject to the local regulation.

So the poster said they called the 311 hotline on the spot to report the store's refusal to accept cash to the relevant authorities, and emphasized that "a business cannot ignore consumer protection laws just because it puts the word 'tech' on its window," while also saying that as a customer, they did not want to have to download a new mobile app every time they drank a cup of coffee.

After the post was published, it not only triggered discussion among netizens on the U.S. Reddit forum, but also attracted the attention of many onlookers on domestic social platforms.

Based on Luckin's official news and summary information provided by Google AI, both Luckin stores in New York City operate a cashless system. Customers can download the official app to select drinks and complete payment, and Apple Pay, PayPal, and other mainstream U.S. payment platforms are also supported, enabling an efficient and seamless "order online + pick up in store" experience.

However, netizens generally believe that there is an obvious difference between the cashless payment model promoted by Luckin and the consumption habits of most local people. American users said they are more accustomed to taking change or a credit card out of their wallet and buying drinks directly at a street-side coffee shop, and are not very comfortable with taking out their phone and opening an app to complete the entire payment process.

In addition, some users who care more about personal privacy worry that while using the Luckin app, the program may access their consumption records, order addresses, and other information, leading to the leakage of personal information. Therefore, in the eyes of many people, the requirement to download the official app in order to buy coffee is not consumer-friendly, and they say outright that they are quite dissatisfied with Luckin offering only online ordering.

As for whether Luckin's refusal to accept cash really violates local regulations, local netizens participating in the discussion pointed out that U.S. federal law does not make a mandatory provision, and merchants can decide their own payment methods, such as accepting only cash or only cards. But as the poster said, because a "no cash" practice may exclude people without bank cards, foreign tourists, and low-income groups, New York City and some other cities have explicit rules prohibiting merchants from refusing cash in order to protect consumers' rights.

(Screenshot of the content of New York City's current "Cashless Ban")

However, some netizens also pointed out sharply that the New York City administrative ban mentioned by the poster mainly targets retail stores or food stores. Since Luckin calls itself a "tech company," its street-side stores are merely "pickup points" for online orders, not coffee shops like Starbucks, so the staff's refusal of cash payments perhaps cannot be deemed illegal.

Image source: Internet

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The above content is compiled by CoffeeHunters, a coffee news website.