America Drinks More Coffee, But Less From Starbucks

Starbucks faces growing competition as coffee drinkers explore new options

Jan. 31, 2026 at 6:55am

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Americans are drinking more coffee than ever, but Starbucks is losing market share as consumers explore a growing number of coffee shop options. While Starbucks remains the industry leader, its share of U.S. coffee shop spending has fallen in recent years as competitors like Dunkin', 7 Brew, Scooter's Coffee, and Chinese chains like Luckin Coffee gain ground. Starbucks is responding with store redesigns and new menu items, but experts question whether the company's focus on the 'soul of Starbucks' will be enough to win back customers who have become 'polyamorous' in their coffee choices.

Why it matters

The shifting coffee landscape reflects broader changes in consumer behavior, as Americans seek more variety, value, and convenience in their coffee purchases. This poses a challenge for Starbucks, which built its brand on providing a premium, third-place experience. The company's ability to adapt and innovate will be crucial in maintaining its dominance in the highly competitive coffee market.

The details

Starbucks' share of spending at U.S. coffee shops fell from 52% in 2023 to 48% in 2024 and 2025, as rivals like Dunkin', 7 Brew, Scooter's Coffee, and Chinese chains like Luckin Coffee gained market share. Starbucks plans to open 575 new U.S. stores over the next three years and is adding new products like updated pastries and snackable foods, but experts say the company's focus on the 'soul of Starbucks' may not be enough to win back customers who have become more experimental in their coffee choices.

  • In 2024 and 2025, an estimated 66% of Americans reported drinking coffee every day, up 7% from 2020.
  • The number of chain coffee stores in the U.S. jumped 19% to more than 34,500 over the last six years.

The players

Starbucks

An American coffee company and coffeehouse chain that revolutionized the United States' coffee culture. Starbucks is the largest coffee chain in the world, with nearly 17,000 U.S. stores and plans to open hundreds more.

Dunkin'

A perennial rival of Starbucks that has gained market share in recent years and just opened its 10,000th U.S. store.

7 Brew

A fast-growing drive-thru coffee chain that had 14 locations in 2019 and now has more than 600.

Scooter's Coffee

A Nebraska-based coffee chain that had 200 locations in 2019 and now has more than 850.

Luckin Coffee

A Chinese coffee chain that is opening stores in the U.S. and is known for its value-oriented approach, with an app that brims with coupons and promotions.

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What they’re saying

“People haven't fallen out of love with Starbucks, but they're now polyamorous in their coffee choices.”

— Chris Kayes, Chair of the management department in the George Washington University School of Business (nbcboston.com)

“There's too much supply relative to demand.”

— Neil Saunders, Managing director and retail analyst at consulting firm GlobalData Retail (nbcboston.com)

“Growth doesn't require us to become something new. It requires us to be exceptionally good at what we already are.”

— Mike Grams, Chief Operating Officer, Starbucks (nbcboston.com)

“I think it's overpriced.”

— Xunyi Xie (nbcboston.com)

What’s next

Starbucks plans to add 25,000 seats to its U.S. cafes by this fall as part of its ongoing effort to improve service and make stores more welcoming.

The takeaway

The shifting coffee landscape reflects broader changes in consumer behavior, as Americans seek more variety, value, and convenience in their coffee purchases. This poses a challenge for Starbucks, which built its brand on providing a premium, third-place experience. The company's ability to adapt and innovate will be crucial in maintaining its dominance in the highly competitive coffee market.