Coffee Shops & Snack Bars NAICS 722515
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Industry Summary
The 59,857 coffee shops and snack bars in the US sell non-alcoholic beverages, snacks, and related items for consumption on or near premises. Companies may specialize in bagels, beverages, confectionaries, cookies, donuts, frozen custard, ice cream, yogurt or pretzels. They may prepare food and beverages on site or resell goods purchased from third-parties. Formats include national and regional chains, franchises or licensed shops, and independent operators.
Competition from Alternative Sources
Coffee shops and snack bars compete with various alternative sources, including fast food restaurants, grocery and convenience stores.
Variable Supply Costs
The cost of raw ingredients in food and beverages sold in coffee shops and snack bars can vary according to market conditions and affect margins.
Recent Developments
Mar 14, 2026 - Energy and Cold Drinks Driving Sales
- Dutch Bros’ rise shows how shifting beverage preferences, especially among Gen Z, are reshaping competitive pressures and strategic priorities for coffee shops, The Wall Street Journal reports. The third‑largest US coffee brand focuses not on hot coffee but on customizable cold energy drinks, which make up about 90% of its beverage mix and 25% of sales, according to WSJ. Its success reflects a major demand shift toward cold, customizable, social‑media‑friendly drinks, with younger consumers preferring iced, flavored, and energy‑based beverages over traditional hot coffee. Dutch Bros is adding bakery items and hot breakfast sliders to encourage morning visits. Convenience and loyalty matter to consumers who expect order‑ahead, predictable drive‑thru experiences and loyalty‑based perks. Coffee shops that lean into cold beverages, customization, convenience, and youth‑oriented branding will be better positioned as the market shifts away from traditional hot coffee.
- American snacking habits are reshaping the restaurant industry by shifting demand away from traditional meals and toward small, flexible, lower‑priced items that fit into off‑hour eating, The Atlantic reports. This change, driven by inflation, GLP‑1 drugs, remote work, and younger consumers’ preference for “intentional indulgences”, is pushing operators to rethink menus, formats, and daypart strategy. The fastest‑growing US brands are cafés, dessert shops, and drink‑forward concepts such as 7 Brew, Swig, and Tous les Jours. Their success shows that beverages and small treats now anchor demand. Traditional chains are shrinking portions and prices. McDonald’s, Sonic, Popeyes, and Chipotle are rolling out wraps, tacos, and protein cups under $4 to capture snack‑time traffic and appeal to health‑conscious consumers ordering smaller portions. Snacks, especially sweet ones, have powered immense growth among quick-service restaurants including stalwarts like McDonald’s and newer chains like China-based Luckin Coffee.
- Drive‑thru coffee shops and snack bars may lose revenue due to outdated ground‑loop timers that provide only partial visibility into what happens in the drive-thru lane, QSR reports. Operators know when, but not why, service is slow, and timer failures can shut down lanes, an especially costly problem for businesses where drive‑thru sales often represent 50–70% of revenue. As a result, operators are shifting toward AI‑driven video intelligence that uses existing cameras to reveal bottlenecks, drive‑offs, and operational breakdowns in real time. This technology gives coffee and snack bar drive‑thrus the ability to diagnose issues like long waits, poor sequencing, or staff miscommunication, problems that quietly erode throughput and customer satisfaction. With richer data and visual context, operators can benchmark performance across locations, tighten procedures, and prevent lost sales. For high‑volume, small‑ticket drive‑thru concepts, AI visibility is becoming essential to protecting margins, improving speed, and keeping lanes consistently profitable.
- Specialty coffee shops are rethinking how they serve drip coffee, and the choices they make have direct implications for workflow, pricing, customer experience, and brand identity, Fresh Cup reports. High‑volume cafés rely on batch brewing to maintain speed and consistency while still showcasing craft through rotating single‑origin offerings. This approach keeps drip affordable and efficient, appealing to regulars who also buy whole beans. Other shops use pour‑overs to highlight variety and deepen customer engagement, adjusting methods by location, serving hand‑brewed to locals, and automated systems for tourist-heavy areas needing faster service. Destination cafés may build their entire experience around made‑to‑order brewing, using pour‑overs as a theatrical, intentional ritual that differentiates them from typical high‑volume shops. Across the industry, decisions about drip are shaping labor demands, menu strategy, and the overall atmosphere, becoming a key lever for how specialty cafés define their identity and compete.
Industry Revenue
Coffee Shops & Snack Bars
Industry Structure
Industry size & Structure
The average coffee shop or snack bar operates out of a single location, employs 16 workers, and generates about $1.1 million annually.
- The coffee shop and snack bar industry comprises about 59,857 companies that operate nearly 78,856 locations, employ about 948,700 workers and generate about $64 billion annually.
- The industry is concentrated at the top and fragmented at the bottom. The top four firms account for about a third of industry sales; the top 50 firms account for 39% of sales.
- Large companies include Starbucks, Dunkin' Brands (Dunkin' Donuts, Baskin Robbins), Dutch Bros, Restaurant Brands International’s Tim Hortons, and Krispy Kreme Doughnuts. Some large chains have significant international operations.
Industry Forecast
Industry Forecast
Coffee Shops & Snack Bars Industry Growth
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