Coffee Shops Race to Create Unique Drinks

The New York Times reports on the ‘coffee wars.’

September 04, 2024

The New York Times took a deep dive into the ongoing coffee shop boom. It cited the town of Odessa, Texas, as an example. “Six years ago, Odessa, an oil town in West Texas probably best known for the high school football team that inspired ‘Friday Night Lights,’ had all of 17 coffee or tea restaurants. Today, it boasts around 55.”

“This is not a phenomenon unique to Odessa. Across the country, in cities large and midsize, cafes and drive-ins that specialize in tea and coffee drinks make up one of the fastest-growing segments of the restaurant industry in terms of number of stores,” reported the Times.

The growth isn’t just for the major coffee players like Starbucks or Dunkin’, either. Regional chain Dutch Bros Coffee has nearly doubled its size in the last three years to 912 locations.

While shops are racing to open more locations with drive-throughs, coffee shops are also working on drawing in Gen Z customers with unique flavored drinks. “Like Starbucks, many of the regional coffee players that are racing to expand make the bulk of their money from frothy, sugary, iced beverages. And like Starbucks, they are focusing on developing drive-through locations, and many have loyalty programs for their customers. Many offer breakfast sandwiches and cake pops that are similar to those at Starbucks. And more than a few sell their versions of Starbucks’s Puppuccinos for furry friends,” according to the Times.

“There are a lot of people who complain Starbucks this and Starbucks that, but Starbucks taught the world that casual, convenient coffee cafes can exist here,” said Alex Tchekmeian, the founder of Foxtail Coffee, which in eight years has grown to 60 locations in Florida and nine in Michigan, Nevada and Georgia. “I don’t know where any of the coffee brands would be in America if not for the invention of the model by Starbucks.”

Read more: Earlier this year, Starbucks launched new drink lineups including its spicy-lemonade refreshers and iced energy beverages.