Placer.ai: Small, mid-size coffee chains growing visit share
Coffee has been one of the best performing sectors in food & beverage, but which businesses consumers are visiting is starting to change.
The coffee segment has seen strong, consistent traffic over the past several years, according to new data from retail data firm Placer.ai. In the fourth quarter of 2024, visits were 29.1% above the first quarter levels from 2019.
But despite the increased traffic, larger brands like Starbucks and Dunkin’ aren’t seeing all of the gains: Mid-sized and small coffee shops are claiming a growing share of total coffee segment visits. Between 2019 and 2024, the share of visitors to mid-sized coffee chains grew from 10.8% to 17.6%, while small coffee chains saw their visit share go from 3.2% in 2019 to 4.4% in 2024.
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Graphic courtesy of Placer.ai.
Placer.ai also noted that small coffee chains have experienced a growing share of longer visits (10+ minutes) over the past several years. Small chains saw a greater year-over-year increase in long visits (+13.4%) than in short ones (+9.1%).
Between 2023 and 2024, short visits (<10 minutes) increased more than longer visits at mid-sized and large chains, while large chains actually saw a drop in longer visits, which is likely a result of increased emphasis on drive-thru and mobile ordering.
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“The success of the overall coffee segment highlights the continued consumer demand for affordable luxuries even as economic uncertainty persists,” said Placer.ai content writer Bracha Arnold. “This is the benefit of a diverse market that accommodates different visitor needs.”
