Coffee Shops & Snack Bars

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.

Oct 14, 2026 - Dutch Bros Testing Walk-Up Coffee Shops

• Fast-growing Dutch Bros is testing walk-up-only coffee shops to attract customers in densely populated urban areas, signaling a potential shift in how coffee chains expand, The Wall Street Journal reports. Its first walk-up-only location, opened near the University of Southern California in November 2025, quickly became one of the chain's highest-volume stores. Dutch Bros operated 1,225 locations as of June 2026, up 17% from a year earlier, and plans to reach 2,029 by 2029. Quarterly revenue jumped 32% to $550.9 million, highlighting strong demand for customizable coffee and energy drinks despite consumer spending pressures, according to WSJ. For coffee shop operators, the strategy suggests opportunities to expand into pedestrian-heavy locations without traditional seating or drive-through lanes. However, competition from Dutch Bros, 7 Brew, and Starbucks could intensify, making convenient ordering, distinctive beverages, and customer service increasingly important.
• Starbucks' 2025 decision to close at least 15 San Francisco stores is creating expansion opportunities for independent coffee shop operators, SFGate reported in July. Local chains, including Andytown Coffee Roasters, are taking over former Starbucks locations, gaining access to attractive, high-traffic retail spaces that may have previously been unavailable or unaffordable. Operators view the closures as a chance to strengthen their presence in downtown San Francisco. Starbucks' plan to end 2025 with 1% fewer stores in North America after openings and closings has created opportunities beyond San Francisco. Well-capitalized regional coffee shops can grow by acquiring prime real estate vacated by larger chains while differentiating themselves through local branding, community engagement, and unique customer experiences. The availability of desirable second-generation retail space could lower expansion costs and support growth for independent cafés in select urban markets.
• Coffee shops face mounting challenges as consumer habits shift from away-from-home consumption, according to new data from the National Coffee Association. High retail prices are pushing customers to brew at home, with 85% of coffee drinkers now doing so, the highest rate since 2012 and up 5% since January 2020. The rise of remote and hybrid work arrangements has further reduced foot traffic at coffee shops, as fewer people commute past cafes daily. Compounding these pressures, improvements in home coffee technology now allow consumers to produce near cafe-quality beverages without leaving the house, making the premium price of away-from-home coffee harder to justify. Together, these forces - rising prices, changing work patterns, and better home machines - are driving a sustained decline in out-of-home coffee consumption, posing serious long-term challenges for coffee shops competing for a shrinking pool of customers willing to pay for the cafe experience.
• Employment at coffee shops and snack bars has grown much faster than in other restaurant segments since the pandemic, although recent hiring has slowed, according to the latest data cited by the National Restaurant Association. Employment at snack and nonalcoholic beverage bars, including coffee, donut, and ice cream shops, was 222,000 jobs, or 27%, above February 2020 levels as of August 2026. By comparison, employment at quick-service and fast-casual restaurants was just 2% above pre-pandemic levels, while full-service restaurants remained 3% below. However, hiring across the restaurant industry has become uneven as operators contend with inconsistent customer traffic. Eating and drinking places added 10,800 jobs in September, following a gain of 33,800 in August. Coffee shops and snack bars may continue to limit hiring until customer demand strengthens, despite their substantial longer-term employment growth.

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.