Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

Bring On The Joe

Lila Margalit
April 27, 2023
Bring On The Joe

In 2022, the coffee space took a hit as many consumers tightened their purse strings in the face of inflation. Caffeine may be a basic necessity (think Lorelai Gilmore) – but when money’s tight, people may forego their discretionary latte or iced coffee drink and seek out more budget-friendly ways to get their fix. And while inflation has begun to ease in recent months, food prices remain significantly higher than they were at the beginning of last year.  

So with the first quarter of 2023 behind us, we checked in to see how the coffee space is faring in what continues to be a challenging economic environment.

Starbucks and Dunkin’: Coffee Visits Begin to Perk Up

Starbucks, which experienced a monthly year-over-year (YoY) visit gap ranging from 6.4% to 10.0% throughout the Q4 2022, saw foot traffic begin to pick up in the first quarter of 2023. While some of the January and February YoY visit growth may be attributable to the Omicron-induced slump of early 2022, the positive trend continued into March and early April.

Major coffee leader Dunkin’ also saw its visit gap begin to narrow in recent weeks, with foot traffic for the second week of April just 0.5% lower than it was in April 2022. Consumers, it would seem, have begun to recover from last summer’s sticker shock and are once again finding room in their budgets for affordable pick-me-ups. And as the weather warms up, people are flocking once again to their neighborhood Dunkin’ for a delicious Coolatta or Frozen Matcha Latte.

Peet’s Coffee and Dutch Bros Keep Up the Momentum

Starbucks and Dunkin’ dominate the U.S. coffee market, but they’re not the only players on the java scene. In recent posts, we’ve highlighted the strong performance of Dutch Bros. – the rapidly-expanding coffee brand that has seen exponential visit growth in recent years, fueled in part by a highly dedicated customer base. 

San Francisco-based Peet’s Coffee is another chain that has long boasted a loyal following among coffee lovers. First established in 1966 by a Dutch immigrant who famously wondered why the richest country in the world had the lousiest coffee, Peet’s now has more than 300 stores across 20 states – some 230 of them in California. The chain is widely credited with pioneering the specialty coffee revolution in the U.S. and even inspiring the creation of Starbucks. And Peet’s artisanal approach to coffee, combined with its commitment to sustainability and “responsible sourcing,” keep “Peetniks” coming back for more. In Q1 2022, some 24.9% of visitors to the chain frequented it at least twice – a metric that increased slightly to 25.1% in Q1 2023.

And despite many consumers’ current budgetary constraints, traffic to both chains has remained relatively close to last year’s levels, with Dutch Bros – famous for its cold concoctions – even seeing visits spike as the weather warmed up. 

A California Bean Scene

To get a sense of how the different coffee chains fit into the wider coffee market, we analyzed data on the True Trade Areas of Starbucks, Dunkin’, Dutch Bros, and Peet’s, operating in California – the most populous, and by some accounts the most caffeinated state in the country. The data shows that each chain serves a somewhat different customer base. Broadly speaking, residents of Peet’s trade areas tend to be older and more affluent than those of the other coffee leaders – particularly Dutch Bros, which attracts an outsize share of Gen-Zers. In California, like in the rest of the country, there’s room for a variety of coffee chains that appeal to different demographics. 

America’s Favorite Beverage

Even when times are tight, Americans love their Joe. According to recent data from the National Coffee Association, 491 million cups of the stuff are drunk in the U.S. each day. And while out-of-home coffee consumption is still lower than it was before the pandemic, the number of people ordering their coffee from a barista has begun to rebound. As inflation stabilizes and consumers adjust to the new price points, will coffee visits continue to bounce back? What’s in store for the coffee space in 2023?

Visit to find out.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
Text Link
Text Link
Text Link
Dunkin' Mall Index: April 2024 Recap – Retail Resilience Heading into Spring
Dollar Stores Still Gaining Momentum
Off-Price Apparel Chains After Q1 2024: Demographics in the Balance
Walmart, Target, and Wholesale Clubs Continue to Thrive
Home Improvement and Decor Check In Office Index: April 2024 Recap – Recovery Continues
Movie Theaters in Q1 2024: A Preview of Coming Attractions?
Let’s Get Physical: Fitness In 2024
Where Are Workers Returning to Office in 2024?
2024 Wins: Sweetgreen & First Watch on the Rise
A Full-Service Turnaround: Bloomin’, Dine, and Texas Roadhouse
Wendy’s and Denny’s: Breakfast and Late Night Dining Drives Success
Coffee Chains: Q1 2024 Update and What’s Changed Since COVID
Checking in with RBI and YUM!
Chipotle & McDonald's Serving Up Success
Wingstop & Shake Shack Continue Growing Their Reach 
Strong Start for Sprouts in 2024
Crocs’ Footwear Fairytale
Who Attends NCAA Final Four Events?
Eclipse Fever: How Did the (Retail and Hospitality) Stars Align?
Exploring Albertsons Companies’ Grocery Growth Mall Index: March 2024 Recap – Malls Rise Again Office Index: March 2024 Recap
Florida Spring Break Break-Up? Travelers Still Love Florida!
Provo-Orem and Ogden-Clearfield Emerging As Utah Hotspots 
Three Formulas for Experiential Retail in 2024
Aldi & Lidl Making The Cut
Texas Suburbs on the Rise
Exploring Luxury Hotel Brands’ Guest Segmentation
The St. Patrick’s Day Effect
How Can JOANN Make a Comeback?
Panera Bread Well Positioned for Possible IPO
Who Will Benefit From Family Dollar’s Downsizing?
Dave & Buster’s and Main Event Entertainment: Food and Fun for Everyone
Darden Brands: Location Analytics and Consumer Behavior
Nike and lululemon: a Strong 2023, Sprinting into 2024
Where Is Retail and Dining Foot Traffic Thriving in Early 2024? White Paper Recap – February 2024
Three Retail & Dining Chains That May Surprise in 2024
Specialty Discount Chains Rock Retail Therapy Mall Index: February 2024 Office Index: February 2024 Recap
Ulta Beauty Continues To Shine
First Watch Sails Into 2024
Hibbett Sports and DICK’S Sporting Goods: A Psychographic Analysis
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024:’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success White Paper Recap – November 2023
Thanksgiving Travel 2023 Recap
Checking in With Nike and Lululemon
Black Friday 2023 Retail Recap
Starbucks’ 2023 Holiday Menu & Red Cup Day Performance
Turkey Wednesday 2023
Who Attended the 2023 Pickleball Championship?