As Starbucks works to simplify its menu and return to being a “third space,” foot traffic research firm Placer.ai took a look into how the QSR is faring.

“As the ‘Back to Starbucks’ plan continues to take shape under CEO Brian Niccol, Starbucks finds itself banking on a familiar recipe for success: innovation. The company’s recent announcement that it is testing a new protein-enhanced cold foam is a key example of its strategy to re-engage customers. The coffee chain also hopes to boost efficiency and free up employees to engage more with customers through its new ‘Green Apron’ service model,” Placer.ai said.

However, Placer.ai data found individual visit frequency has stagnated, meaning those customers are coming back less often.

In May 2025, Placer.ai reported that Starbucks saw a 0.72% visit decrease year over year compared to visits in May 2024.

The urgency for Starbucks’ turnaround is “amplified by competition from all sides. The market has seen a surge in new, efficient drive-thru coffee concepts like Dutch Bros, 7 Brew, PJ’s Coffee and others that cater to consumers seeking speed and convenience,” the research firm concluded.

Plus, Starbucks faces continued competition from at-home coffee, with many consumers opting to get their caffeine fix from canned beverages. And as Gen Z continues to push the desire for experiential, functional and customizable beverages, Starbucks will have to continue to evolve to keep up.

In the May 2023 issue of NACS Magazine feature “The C-store Coffee Shop,” NACS discussed ways retailers can compete with QSR coffee chains.