It’s not just Starbucks vs. Dunkin’ anymore — last year, four other coffee chains each opened 50+ stores. Dutch Bros is emerging as a serious contender as the third-biggest coffee chain, capitalizing on the growing consumer preference for drive-thrus. Despite its stock’s ups and downs since its 2021 IPO, with shares trading at less than half of their Oct. 2021 peak, the potential for growth remains high, especially with 67% of Americans now drinking coffee daily (up 37% over the past two decades).
- As more people are on the move throughout the day, coffee consumption habits are shifting towards daytime drive-thrus and specialty beverages.
- 7 Brew has also seen rapid growth, expanding from 40 drive-thru locations in 2022 to 200+ today — while Blank Street Coffee has exploded onto the scene with 74 locations in just three and a half years.
Starbucks stumbles: The iconic coffee chain’s investors might need something stronger than coffee after reviewing its recent stock performance. US stores experienced a 7% decline in transactions last quarter, resulting in the steepest drop in shares since the pandemic. Worse, former CEO Howard Schultz’s vision of dominating the Chinese market hasn’t panned out, with Chinese same-store sales falling even more.
Read: Coffee prices brew up to nine-year highs amid commodity surge
