New analysis of Starbucks’ and Dutch Bros’ third quarter reports by Placer.ai found that short visits to the coffee chains are on the rise, said the research firm in a blog post.
Placer.ai said that between July 2023 and July 2024, Starbucks added more than 500 stores to its domestic fleet, bringing its U.S. store count to 16,730. And though Starbucks has “faced its share of challenges, these store additions helped keep overall traffic to the coffee leader on par with 2023 levels throughout the summer—though visits dipped somewhat in September as consumers went back to their routines.”
The data shows that Starbucks saw overall foot traffic growth stall in Q3, and the number of short visits to the chain lasting less than 10 minutes increased. In August and September 2024, the chain drew 8.5% and 4.7% more short visits, respectively, than in the same periods of 2023—revealing how important these quick stops are for the coffee chain, according to Placer.ai.
In-app ordering, which together with drive-thru orders made up about 70% of sales at Starbucks as of January 2024, may be contributing to the short visit trend.
Oregon-based coffee chain Dutch Bros opened more than 150 stores between Q2 2023 and Q2 2024 and “has seen the elevated monthly visits to match. Between June and September 2024, visits to Dutch Bros increased between 13.7% and 16.9%, highlighting the chain’s success at growing its audience,” wrote Placer.ai.
However, like at Starbucks, short visits outperformed longer ones at Dutch Bros. In September 2024, overall visits to the chain grew by 13.7%, but visits lasting less than 10 minutes shot up by 26.6%.
Placer.ai said that the strength of these short visits, for both Starbucks and Dutch Bros, suggests a shift towards convenience, with both chains utilizing drive-thru services and in-app ordering to accommodate busy consumers.
Last month, NACS Daily reported that Starbucks is scaling back promotional offers through its mobile app and instead wants more of its customers to pay full price for its coffees and teas. The move is “part of new CEO Brian Niccol’s strategy to reposition Starbucks as a premium brand while also reducing the strain on employees, who get flooded with work when promotions are high,” reported CNN Business.