The news: The coffee wars are entering a new phase in the US as competitors attack Starbucks and Dunkin’ from multiple angles.

• 7 Brew, Dutch Bros, and Scooter’s Coffee are expanding through small-format drive-thru shops built to serve customizable drinks quickly.
• China’s Luckin Coffee entered the US with compact pickup shops in New York, opening as many as 16 in the city over the past year.
• Grocers and other retailers are adding in-store coffee shops—Sprouts Farmers Market will open cafes in 10 southwest Florida stores this summer in a partnership with Buddy Brew Coffee.

What it means: Coffee chains are on a growth spurt as they focus on consumers’ desire for speed, convenience, customization, and affordable indulgences.

The newest challengers are not trying to recreate Starbucks. Instead, they’re tailoring their products to particular habits, needs, and occasions.

• Drive-thru chains target commuters who want to grab a drink without leaving their cars.
• Luckin’s shops are designed for dense urban areas where mobile ordering facilitates fast pickup.
• In-store cafes in grocery stores and apparel shops give shoppers another reason to visit and linger.

These chains also sell much more than traditional coffee and hot chocolate. Menus feature refreshers, cold brews, energy drinks, teas, smoothies, and customizable beverages to appeal to a wider range of tastes—like 7 Brew’s Dragon’s Blood, an energy drink pumped with cherry and blue raspberry syrups.

The strategy is gaining ground in a cautious consumer environment. While many are scrapping larger discretionary purchases, consumers continue to spend on relatively affordable treats like specialty coffees, teas, and energy drinks: Per KPMG, 31% of US adults visit cafes and coffee shops as often as they did a year ago, while just 22% say they haven't visited one at all this year.

Bolstering outlook: At Dutch Bros, which operated nearly 1,200 locations in 25 states at the end of March, quarterly traffic gains peaked at 15.5% in Q2 2025, per Placer.ai data. Last month, the company raised its 2026 outlook for revenues, same-shop sales, and adjusted EBITDA.

Bolstering openings: 7 Brew opened its 777th US drive-thru stand this month and is on track to reach 1,000 stores this year, per Restaurant Dive. Scooter’s Coffee is also opening stands at a fast clip and now operates drive-thrus at 900 locations across 32 states.

Implications for retailers: The success of new coffee chains shows the value of offering goods tied to particular habits, needs, and occasions. That strategy can resonate beyond coffee. As shoppers become more selective, retailers may benefit from tailoring store formats, assortments, and services to distinct routines such as commuting, workday energy breaks, and on-the-go consumption. Coffee’s expansion into other stores shows how retailers can use complementary offerings to bolster visit frequency and give shoppers more reasons to stop in.