Coffee has long been synonymous with ritual, from the aromatic allure of freshly ground beans to the personalized touch of cream and sugar that enhances each cup.
The comfort derived from enjoying this beloved beverage, whether at home, in the car, or at a café, forms an essential part of many people’s routines.
However, recent trends indicate a significant shift in consumer preferences regarding where individuals choose to obtain their morning coffee.
Since 2019, small and mid-sized coffee chains have notably increased their market share, as highlighted by data from Placer.ai, a company specializing in location and foot traffic analytics.
In particular, the share of visitors to mid-sized chains, such as Dutch Bros, has surged from 10.8% to 17.6% in 2024.
Meanwhile, small chains have also seen a modest increase, with their visitor share growing from 3.2% to 4.4% over the same period.
Conversely, larger corporations like Starbucks have faced customer losses and are actively seeking ways to re-engage their clientele.
During a Leadership Experience event in Las Vegas this past June, CEO Brian Niccol addressed over 14,000 store managers, discussing the company’s ongoing effort to refocus on creating a welcoming coffeehouse environment where patrons can gather and enjoy high-quality coffee crafted by skilled baristas.
Scott Jackson, an economist and assistant professor at UNLV, notes that Starbucks’ restructuring strategy hints at an identity crisis.
“Starbucks is kind of in this weird space. What do they want to be branded as? The quick service coffee, like Dutch Bros? Or do they want to be your neighborhood cozy coffee shop where you can sit and get to know your barista?” Jackson asserts.
He emphasizes how the company is currently trying to balance these two identities, which can be a challenging undertaking.
As Starbucks endeavors to reaffirm its identity as a “community coffeehouse,” niche businesses like Mothership Coffee Roasters are flourishing.
“It’s interesting because Starbucks was able to market the concept of the third place, and they’ve progressively removed themselves from that category,” remarks Mothership’s founder, Juanny Romero.
Romero points out how Starbucks has eliminated over 30,000 seats from its locations in recent years, emphasizing a shift toward a more app-based, grab-and-go model—an approach Niccol has promised will be reversed.
“It’s really funny how the CEO’s plan is just coming back to their original concept,
image source from：lasvegasweekly
