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.

Aug 14, 2026 - Independents Filling Starbucks' Vacancies

• 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 may finally get some relief from input cost pressures as arabica coffee prices continue to decline in 2026 from record highs in 2024 and 2025, Perfect Daily Grind reported in June. The price drop is being driven by expectations of a record Brazilian coffee harvest, with production forecasts ranging from 66.7 million to nearly 72 million bags. Rabobank projects a global coffee surplus of 7-10 million bags during the 2026/27 season, which could put further downward pressure on coffee prices. Lower green coffee costs could help improve margins for manufacturers and coffee shops after several years of elevated input costs and compressed profitability. However, the outlook remains uncertain, as weather risks, including the potential development of a strong El Niño event that could affect future Brazilian crops, may reverse recent price declines.
• 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 snack and nonalcoholic beverage bars continued to climb in May, extending a six-month growth streak with employment up 5.7% from a year earlier, according to the latest US Bureau of Labor Statistics data. Hiring at snack bars is highly seasonal and typically accelerates ahead of the summer months. Meanwhile, the average hourly wage at restaurants and other eating places rose 4.6% year over year to a record $19.97, driven in part by minimum wage increases that took effect in 19 states in January. Rising employment and wage growth are pushing payroll costs higher. Despite these gains, restaurant industry employment has increased at an average annual rate of just 0.62% over the past four years, well below the 1.8% pace before the pandemic, as operators increasingly adopt technologies such as mobile ordering and self-service kiosks to improve efficiency and reduce labor needs.

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.