In a shift signaling a new era for the coffee market, traditional giants like Starbucks and Dunkin’ are facing formidable competition from a wave of dynamic newcomers. These upstarts, characterized by drive-thru convenience and innovative beverage offerings, have rapidly gained ground in recent years, altering the landscape of the industry.
Among the standout performers this year are:
7 Brew Drive Thru Coffee: Remarkably expanding from a single unit to 180 outlets within six years, this chain witnessed a staggering triple-digit unit count surge over the past year alone.
Scooter’s Coffee: With the eighth-highest number of unit openings in the top 500 overall, surpassing renowned brands like Domino’s and Tropical Smoothie Café.
Dutch Bros: Notably, this trendy drive-thru coffee chain boasted a sales growth rate twice that of Starbucks, standing at an impressive 24.2% compared to Starbucks’ 12.5%.
Ziggi’s Coffee: Breaking into the top 500 for the first time, securing the 494th position.
Meanwhile, Starbucks failed to secure a spot in the top 10 coffee chains by unit growth and experienced a modest 12.5% sales growth. This falls below the growth rates of all four rapidly ascending coffee chains mentioned above, as well as Biggby Coffee, Bluestone Lane, and PJ’s Coffee.
While pinpointing the exact reasons behind Starbucks’ subdued growth momentum proves challenging, shifting consumer preferences, especially among younger demographics, emerge as a significant factor. Dutch Bros, for instance, earned recognition this year as one of the most beloved brands among Gen Z and Millennials, according to Technomic.
Key factors contributing to the success of these emerging contenders include the convenience of drive-thru service—a common feature among the top four fastest-growing coffee chains—and an elusive “cool factor” that entices customers to explore new brands and beverages, beyond the traditional Starbucks offerings. Noteworthy innovations like Dutch Bros’ protein coffees and Scooters’ smoothies further contribute to their appeal, resonating with an evolving consumer base.