Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Location Intelligence Breakdown: Coffee Caps-Off 2022

by 
Ezra Carmel
 on 
January 31, 2023
Location Intelligence Breakdown: Coffee Caps-Off 2022

2022 saw the coffee space impacted by high inflation and the curbing of discretionary spending. But amidst these setbacks, the leading coffee chains expanded their footprints, rolled out perennial favorites, and welcomed crowds of loyal visitors. In recent months, many consumers saw coffee as an affordable luxury and were once again enchanted by coffee’s seasonal charm. 

With the lid on coffee space foot traffic for 2022, and the first sips of 2023 underway, we dove into the data for three leaders in the coffee category – Starbucks, Dunkin’, and Dutch Bros. Coffee – to take a closer look at how inflation, consumer loyalty, and promotions have impacted visits to the space. 

Starbucks: ‘Tis the Season to Drink Coffee 

Starbucks has consistently demonstrated its capacity to command the promotional calendar and drive foot traffic around the holidays – and last year was no exception. In the second half of 2022, visits increased following seasonal menu launches and promotions. Coffee was an especially hot commodity in the days and weeks post-Christmas as many bargain-hunters were out hawking steep discounts

In the second half of 2022, Starbucks saw its largest weekly visit growth over the weeks of August 29th (22.6%), November 14th (35.6%), and December 26th (45.6%) compared to a July 4th, 2022 visit baseline. These weeks coincided with the launch of Starbucks’ ever-popular Pumpkin Spice Latte, Red Cup Day, and the last week of the year when many consumers were on vacation and had time to shop or socialize over coffee. Evidently, the holiday season at Starbucks – even in times of economic headwinds and tighter consumer budgets – still drove visit peaks to the chain. 

But adopting a wider lens indicates that, despite the bright spots, the coffee category as a whole was still plagued by rising inflation and a decline in consumer spending for much of 2022. Despite the success of the brand's seasonal offerings, monthly Starbucks traffic stayed consistently below 2021 levels as consumers tightened their budgets in the face of the ongoing economic headwinds.

Dunkin’: In it for the Long Haul

And compared to Starbucks, which attracts a relatively affluent clientele, Dunkin’ was particularly affected by spending cuts due to a significant portion of its audience being acutely impacted by inflation. 

In 2022, Dunkin’s True Trade Area residents had a median HHI of $57K while residents of Starbucks’ True Trade Areas had a median HHI of $66K. This meant that Dunkin’ was especially susceptible to discretionary spending cuts by its potential visitors who were more likely to be feeling the pinch of inflation. This ultimately attributed to larger year-over-year (YoY) visit gaps for Dunkin’ for most of 2H 2022. 

But despite a decline in YoY visits, Dunkin’ received a welcome foot traffic boost towards the end of the year. In December 2022, YoY visits were down  just 5.8%, the best YoY comparison of 2H 2022. And for a majority of 2H 2022, Dunkin’s year-over-three-year (Yo3Y) visits were positive – an indication of the brand’s true strength relative to 2019 and a less inflation-dominated era.

Dutch Bros.: A Loyal Fraternity

In tough times, it’s loyalty that brings brand and consumer together. While expansion undoubtedly played a role in driving heavy foot traffic to Dutch Bros. Coffee in 2022, behind the chain’s growth lies strong customer loyalty that justifies the opening of the many new locations. In 2022, more visitors to Dutch Bros. were repeat visitors than in 2019. And on average, Dutch Bros. visitors visited more frequently than they did three years ago. 

In 2H 2022, 43% of Dutch Bros. visitors visited at least twice in the six-month period, up from 34.8% in 2019. The average visit frequency also jumped from 2.0 in 2H 2019 to 2.5 in 2H 2022. Strong customer loyalty is clearly a factor in Dutch Bros.’ aggressive expansion strategy and indicates that there is likely plenty of room for the brand to continue to grow. 

Coffee Doesn’t Stunt Growth

Despite inflation continuing to wreak havoc on consumer spending, coffee category leaders saw a strong end to 2022. Successful holiday promotions, fleet expansion, and visitor loyalty all played a part in a robust finish to the end of the year. With bold brick-and-mortar strategies in the works, there is reason for optimism that coffee shop visitors will continue to fill their cups in 2023. 

For updates and more QSR foot traffic insights, visit Placer.ai.

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 Placer.ai Free
Oops! Something went wrong while submitting the form.
Text Link
Coffee
Text Link
Starbucks
Text Link
Dunkin'
Limited Time Offers: Price Wars Boost Visits
Placer 100 Index for Retail & Dining: June 2024 Recap
Placer.ai Mall Index: June 2024 Recap
Placer.ai Office Index: June 2024 Recap
Inside Out 2: The New Blockbuster Bringing Crowds Back to Theaters
Petco and PetSmart: A Head to Head
Frozen Delights: Exploring Ice Cream Chains Across America
Placer.ai White Paper Recap – June 2024
Barnes & Noble: Writing a New Story
Small Format Stores - Sprouting, Blooming, and Expanding
Retail and Dining on Father’s Day
Thrift Store Visit Scores
Charting Value Grocery’s Visit Growth
Placer 100 Index for Retail & Dining: Introduction and May 2024 Recap
Digging Into Darden: Q2 2024 Update
2024 Retail and Dining Trends Update
TRU and avid: Midscale Hotels on the Rise 
Diving Into Kroger: A Strong Start to 2024
Placer.ai Mall Index: May 2024 Recap – Mall Visits on the Rebound
Placer.ai Office Index: May 2024 Recap
2024 Memorial Day Recap
Las Vegas: A Tourism and Migration Deep Dive
Eatertainment Chains: Full on Food, Fun, and Foot Traffic
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai 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
Placer.ai 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
Placer.ai Mall Index: March 2024 Recap – Malls Rise Again
Placer.ai 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?
Placer.ai White Paper Recap – February 2024
Three Retail & Dining Chains That May Surprise in 2024
Specialty Discount Chains Rock Retail Therapy
Placer.ai Mall Index: February 2024
Placer.ai 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: Placer.ai’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
Placer.ai Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance
Placer.ai 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