Because the mid-’90s, Starbucks has dominated the retail espresso scene. With practically 17,000 U.S. places, in keeping with ScrapeHero, it’s far and away the biggest espresso chain within the nation.
However lately, plenty of corporations have began to problem that dominance. Dunkin’ now has greater than 10,000 places in 44 states. Luckin Espresso, which has truly surpassed Starbucks in China, as CNBC reported, has opened its first U.S. places.
And regional chains like 7 Brew and Scooters Espresso are quickly increasing their footholds in sure corners of the nation, because of the traction they’ve gained on social media.
Nonetheless, one espresso chain stands other than the remaining as probably to truly seize a portion of Starbucks’ shopper base: Dutch Bros.
In 1992, Dane and Travis Boersma began Dutch Bros as a single pushcart that they’d transfer round Grants Cross, Oregon. It didn’t take lengthy for that single cart to show right into a swarm of drive-thru stands scattered across the state, and by 2000, the espresso firm opened its first franchise location.
At present, there are 1,100 Dutch Bros places in 25 states, ScrapeHero confirmed. The vast majority of these places are concentrated within the western half of the nation, though the Southeast is changing into one of many firm’s fastest-growing markets.
Whereas the variety of Dutch Bros places nonetheless pales compared to Starbucks’ foothold, the smaller espresso chain provides Starbucks a run for its cash in plenty of different, arguably extra significant, methods.
Starbucks’ shine is carrying off
On the shut of 2024, Starbucks hit a low level. The corporate reported a ten% lower in comparable transactions, leading to a 3% decline in whole revenues.
“Our results do not reflect the strength of our brand,” former Starbucks CFO Rachel Ruggeri mentioned on the time. “I have seen what Starbucks is capable of when we focus on what we do best. I have confidence in our ability to turn around our business and expect we will return to long-term growth.”
“It is clear we need to fundamentally change our strategy to win back customers,” CEO Brian Niccol added. “My experience tells me that when we get back to our core identity and consistently deliver a great experience, our customers will come back.”
That Again to Starbucks plan has been in impact for 18 months, and the espresso chain is beginning to see some payoff. Site visitors knowledge from Placer.ai reveal that total visits to the chain improved by 5.2% in This autumn FY2025 and 5.5% in Q1 FY2026.
“If sustained, this momentum could signal a meaningful and durable return to growth for the brand,” the info firm mentioned in its report.
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Whereas these numbers are definitely encouraging, they don’t account for the way troublesome it could in the end be for Starbucks to regain the belief and goodwill it’s misplaced with clients over the previous a number of years.
“The data shows there are a lot of people out there that don’t like Starbucks anymore, so they need a new reason to believe, to reconsider going back to Starbucks for a coffee experience, because right now, they’re not feeling the love,” Stephen Hahn, government vice chairman of company fame administration firm Reptrak, instructed Forbes.
“Starbucks has become a more corporate and money-driven culture and that is trumping anything else in terms of community values and sense of purpose within the realm of the company,” he continued. “That’s potentially very dangerous ground.”
“To complete a turnaround, Starbucks can’t just rely on slick marketing, good-quality products or the coffee experience,” Hahn added. “It needs to find a new angle that allows people to better understand the totality of Starbucks and what it stands for.”
As Starbucks struggles to regain shopper belief, Dutch Bros’ sturdy model id prompts explosive development.
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Dutch Bros’ sturdy model id
In the meantime, Dutch Bros has been clear on what it stands for from the beginning, and hasn’t betrayed these values in pursuit of a greenback.
The smaller espresso chain began company-wide givebacks like Dutch Luv, Drink One for Dane, and Buck for Youngsters as early as 2006. Up to now, it has raised thousands and thousands of {dollars} for ALS analysis, meals banks, kids’s organizations, and different charitable organizations.
The corporate has additionally introduced that community-oriented strategy to its customer support.
Dutch Bros CEO Christine Barone has known as the corporate’s customer support its “brand differentiator,” and clients appear to agree.
In 2025, Chatmeter analyzed greater than 300,000 buyer critiques of main espresso chains and located that buyers recognized Dutch Bros as having the very best service within the trade. With a rating of two.7, “Dutch Bros far outperforms Starbucks and Dunkin’,” the report said.
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The emphasis on customer service and community coupled with the chain’s rapid expansion, has resulted in overall visit increases that dramatically outpace those at Starbucks.
For the last five consecutive quarters, Dutch Bros has seen foot traffic growth ranging from 12.3% to 17.9%, according to data from Placer.ai.
“[Dutch Bros] combination of robust overall traffic growth and steady per-location performance points to a healthy expansion strategy, where footprint growth is driving incremental demand rather than diluting it,” the report said.
Barone is confident the coffee chain will be able to maintain this level of growth going forward, as long as the company doesn’t lose sight of its core values.
“It’s about providing awesome service every single day,” she told attendees at April’s Restaurant Leadership Conference, according to Nation’s Restaurant News.
“If you know what’s important, and you know your teams are happy, and you’re growing the right way, and every day you’re serving the customer and seeking to serve your customers a little bit better than the day before — that’s what builds a long and enduring brand.”
This commitment to its strengths as a brand might also be exactly what it takes for Dutch Bros to win over the disillusioned Starbucks customer and begin to cannibalize the giant’s hold on the industry.
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