Starbucks Faces Mounting Competition for US Coffee Drinkers

Rivals like Dunkin', Dutch Bros, and Luckin Coffee are gaining market share as Americans experiment with more coffee options.

Jan. 31, 2026 at 4:39am

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Starbucks remains the largest coffee chain in the US, but its market share has declined in recent years as more competitors enter the market. Chains like Dunkin', 7 Brew, Scooter's Coffee, Dutch Bros, and international players like Luckin Coffee are opening new locations and attracting customers with value-focused offerings and convenient drive-thru options. Starbucks is responding by redesigning stores, adding new menu items, and planning to open thousands of new US locations, but experts warn the company may struggle to maintain its premium positioning as customers experiment with more coffee choices.

Why it matters

The rise of new coffee chains and increased competition in the US market poses a significant challenge to Starbucks, which has long dominated the coffee shop landscape. As Americans drink more coffee than ever, Starbucks must adapt to retain its market leadership position and appeal to consumers who are now more willing to try alternative coffee options, especially those focused on value, convenience, and novelty.

The details

Starbucks' share of US coffee shop spending fell from 52% in 2023 to 48% in 2024 and 2025, as rivals like Dunkin' gained ground. Other fast-growing chains like 7 Brew, Scooter's Coffee, Dutch Bros, and international players like Luckin Coffee are opening hundreds of new US locations, offering drive-thru service, value-focused pricing, and innovative menu items. Starbucks is responding by redesigning stores, adding new food and beverage options, and planning to open over 575 new US stores in the next 3 years, but experts warn the company may struggle to maintain its premium positioning as consumers experiment with more 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 US jumped 19% to more than 34,500 over the last six years.
  • Scooter's Coffee had 200 locations in 2019 and now has more than 850.
  • 7 Brew had 14 locations in 2019 and now has more than 600.
  • Dutch Bros plans to double its number of US stores to over 2,000 by 2029.

The players

Starbucks

The largest coffee chain in the US, with nearly 17,000 stores and plans to open hundreds more. Starbucks revolutionized US coffee culture but is now facing unprecedented competition.

Dunkin'

A perennial rival to Starbucks that has gained market share in recent years and just opened its 10,000th US 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.

Dutch Bros

An Arizona-based coffee chain led by a former Starbucks executive that has just over 1,000 shops in the US and plans to double that number by 2029.

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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. People are now experimenting with other coffees, and they're seeing what's out there.”

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

“I think it's overpriced.”

— Xunyi Xie (wbal.com)

What’s next

Starbucks plans to add 25,000 seats to its US cafes by this fall as part of its efforts to improve service and make stores more welcoming. The company also expects to open more than 575 new US stores over the next three years, including a smaller-format store design that is cheaper to build but still has indoor seating, drive-thru lanes, and mobile pickup.

The takeaway

Starbucks' dominance of the US coffee market is being challenged by a proliferation of new and growing chains that are offering more convenience, value, and variety to consumers. To maintain its leadership position, Starbucks must continue innovating its menu, store experience, and expansion strategy to appeal to customers who are increasingly willing to experiment with alternative coffee options.