Coffee is a nonnegotiable in many people’s lives. Some would call it a necessity, and doctors might even call it an addiction.
Nonetheless, millions of Americans consume coffee at least once a day, whether to wake up in the morning or for an afternoon pick-me-up.
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In the current uncertain economic climate, many consumers continue splurging on products that have become constant in their lives, despite being more careful in their spending on other items.
However, a new consumer trend is emerging, taking over a key market, and showing unexpected results.
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Coffee lovers are beginning to purchase their daily cup of coffee at smaller chains rather than the usual giants, leading these emerging chains to experience significant growth in store traffic.
This is an excellent sign for the future of smaller coffee chains, but established giants like Starbucks and Dunkin’ are starting to suffer the repercussions of these actions.
Coffee chains compete for store traffic.
Image source: Getty Images
Coffee giants suffer the consequences of losing store traffic to smaller chains
Many markets are suffering from a slowdown in consumer spending, but buying coffee is a luxury that’s affordable enough, and consumers are willing to budget for it.
The overall traffic at establishments that sell coffee is up 1.8% year over year as of 2025. However, some excel at it more than others, and the outcome may be surprising.
Smaller coffee chains are thriving in this current environment, reaching some of the highest store traffic numbers ever.
In the first quarter of 2025, Dutch Bros. (BROS) saw a 13.4% increase in traffic, Scooter’s Coffee grew by 15.3%, and 7 Brew Coffee reported an impressive 87.3% surge, as reported by Placer.ai.
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However, giant coffee chains are experiencing the opposite. Starbucks (SBUX) saw a nearly 1% decline in store traffic compared to the previous year, and Dunkin’ had an even worse fall of 1.7%.
This slowdown in traffic is starting to affect the top competitor, leading it to report sales declines.
Starbucks’ comparable store sales fell 2% in the second quarter of 2025, marking the fifth consecutive quarterly decline.
Comparable transactions were down 2% compared to last year, while traffic continues to report negative numbers with a 4% decline.
These numbers might result from Starbucks’ higher prices compared to the smaller chains. However, the same can’t be said about Dunkin’, since its prices are more comparable to those at smaller chains.
Popular coffee chains are too big to be overtaken anytime soon
Despite its recent drops, Starbucks remains the top coffee giant, dominating the market share and getting more foot traffic than all other chains.
Consumers who visited Dunkin’, Dutch Bros., Scooter’s Coffee, and 7 Brew Coffee also visited Starbucks within the same time frame. In contrast, only 27.4% of its customers visited its rival chains, as stated in the previously mentioned report.
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This says a lot about the loyalty Starbucks has built with its customers, since the majority remain committed to the brand, despite the growing competition.
After all, Starbucks and Dunkin’ are considered coffee giants for a reason. They have a much larger footprint than these smaller chains and are not likely to be overtaken anytime soon.
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