Competition in the coffee market is heating up as smaller regional chains are gaining ground against industry leaders like Starbucks and Dunkin’. Recent data shows a decline in visits to these giants, while independent cafés are thriving. The shift is attributed to changing consumer preferences and the agility of smaller chains to innovate quickly.
• Starbucks and Dunkin’ saw a drop in visits by 0.9% and 1.7% in Q1 2025.
• Regional chains like Dutch Bros and Scooter’s Coffee experienced significant growth, with some doubling their store count.
• Smaller chains are successfully attracting Gen Z customers with unique offerings and seasonal drinks, like Gregorys Coffee’s Iced Cherry Blossom Matcha.
• Starbucks is facing challenges, including profit declines and plans to cut corporate staff to realign its strategy.
This trend matters because it highlights a shift in consumer spending towards unique experiences over traditional offerings. As independent cafés continue to innovate, they not only challenge the dominance of major chains but also reshape the coffee culture landscape.
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