Starbucks and Dunkin’ both saw negative traffic for the third quarter, while 7 Brew and smaller coffee chains led the way

It’s a tale of two coffee segments: On the one end, Starbucks and Dunkin’ — the two largest coffee chains — are still struggling with traffic. Mirroring the rest of the QSR industry, visits for both companies declined for the third quarter, according to the latest data from Placer.ai, with September being the worst month (2.9% traffic decline for Starbucks and a 4% decline for Dunkin’ in the last month of the quarter, compared to 2004).

On the other hand, traffic for the overall coffee industry has remained steady, as the segment noted a modest 1.4% increase in visits for the third quarter, with traffic down 2.9% for the rest of the QSR industry.

With Starbucks and Dunkin’ both experiencing traffic declines for the third quarter, who was the segment leader? Placer data shows that while coffee industry darling Dutch Bros saw not-insignificant 8.8% traffic growth for the third quarter, same-store visits were down modestly for the brand, noting a particularly challenging September, much like the rest of the QSR industry.

7 Brew Coffee — a Dutch Bros competitor and the fastest growing foodservice chain of 2024, both in sales and unit growth, according to Technomic Top 500 data — was the undisputed winner for the third quarter. The Fayetteville, Arkansas-based brand saw a whopping 80.4% increase in traffic, and 19.4% same-store visits growth. Besides 7 Brew, other emerging, mostly drive-thru coffee brands drove the coffee segment’s growth for the third quarter. Other traffic leaders included Better Buzz Coffee roasters (up 72.3%), Foxtail Coffee (up 46.8%), and Ellianos Coffee (up 21.5%).

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“The growing strength of these regional brands – many of which, like Dutch Bros, emphasize speed and convenience through drive-thru formats – could reshape the competitive coffee landscape heading into 2026,” the report from Placer.ai reads.

This is a continuing trend for the coffee segment, as over the past couple of years, newer mid-sized brands have outperformed and outpaced legacy coffee chains Starbucks and Dunkin’, signaling a shift in consumer perception.

As Starbucks gets ready to report its Q3 earnings on Wednesday, the company faces continued friction with unionized baristas, as well as evidence of ongoing fiscal challenges, like multiple rounds of layoffs and more than 400 store closures in one quarter.

Contact Joanna at joanna.fantozzi@informa.com

Source https://www.nrn.com/quick-service/7-brew-leads-coffee-industry-in-traffic-as-qsr-segment-continues-to-struggle