These 5 Coffee Chains are Losing Customers Fast
It hasn't been the best time for fast-casual and quick-service spots, and coffee chains are no exception. Even Starbucks has recently been feeling the strain as people turn away from fast-casual spots in an effort to save money. It certainly doesn't help that the average price of a regular coffee has become sky-high and meme-worthy, with jokes being made about how people should give up their lattes to save for a down payment. Here are some coffee chains struggling to keep customers during downsizing and poor profits.
Shari's Café & Pies
Shari's Café & Pies abruptly closed down all its Oregon locations in 2024, leaving only the California, Washington, and Idaho locations open. "We've been in hospice for months, and it was just dragged out to the very end," Deb Melina, who managed the Shari's restaurant on Northeast Airport Way in Portland, told KGW8.
Philz Coffee
Philz Coffee closed its original location in San Francisco's Mission District in 2023, before closing its Santa Monica location in March 2024. "Regular customers are understandably heartbroken, but can still mail order beans through the company's website. Nine other Philz outposts remain in the area with the closest in Culver City and Beverly Hills," says the Santa Monica Sun.
Revelator Coffee
Revelator Coffee once had 20 locations across the South, just closed a location in Birmingham, Alabama. "This was a super cool spot," long time customer Lauren Damond told CBS42. "It didn't have a lot, but the things they had were really good." This left just the New Orleans, Louisiana location, which is now called Nova Espresso.
Blue Star Donuts
Portland-based chain Blue Star Donuts has been facing a lot of difficulty lately, and recently shut down locations in Portland and Venice, Los Angeles. "Being a small business comes with a host of extremes. While we might flex like a larger business, the truth is that there's a very small, scrappy, hard-working group of people behind the scenes over here doing their darndest to keep putting out a high-quality product that we're proud of, in a world of fast-rising food, labor, and rent costs," the company said on Instagram.
Starbucks
It has to be said that Starbucks is in a vastly different position to the other coffee chains—while it is closing down underperforming locations, overall the company is focusing on growth and a return to basics. "While we're only one quarter into our turnaround, we're moving quickly to act on the 'Back to Starbucks' efforts and we've seen a positive response," said Brian Niccol, chairman and chief executive officer.
Coffee Trouble
Coffee beans in general have become much more expensive thanks to a poor harvest, and prices could also be impacted by possible tariffs. "The rising coffee prices are part of a larger, global challenge driven by climate change, economic pressures, and geopolitical uncertainty," Yannis Apostolopoulos, the CEO of the Specialty Coffee Association (SCA), told Food & Wine.
Sign up for our newsletter!
