There is a big shift happening in the coffee world, and if you are a regular at places like Starbucks, you may have already felt it. Fewer people are walking into the big coffee chains — but it is not just about price anymore. Something deeper is going on, and it has a lot to do with the kind of experience people want from their daily cup of coffee.
Why are customers leaving starbucks and other big chains?
It is true that price matters. Many customers are not happy paying over $6 for a drink, especially when prices seem to keep going up. But the real reason people are turning away from big coffee chains is something else entirely — the experience.
Nicholas Stone, founder of Bluestone Lane, put it simply: “Clearly a lot of the legacy brands are in some challenges.” He pointed out that big chains have pulled back from focusing on coffee and started pushing other drinks like refreshers and energy drinks.
That change has left a gap. And smaller chains are filling it fast.
What do customers really want from their coffee experience?
Today’s coffee drinkers are not just grabbing a quick drink and leaving. They want a place to relax, meet friends, or even work for a while. They are looking for a full experience — not just caffeine in a cup.
According to data from Placer.ai, visits to smaller coffee shops are growing, and those visits are longer — often 10 minutes or more. That means people are sticking around. They want:
- A calm and cozy space
- Friendly service
- Better-tasting, premium coffee
- Unique menu options
- A place that feels different from a fast-food chain
Ashley Peeples, senior vice president at Royal Cup Coffee & Tea, said it clearly: “They want their experience to be a standout experience.”
How are small coffee shops standing out?
Smaller brands like Bluestone Lane have figured it out. They are not trying to be everything to everyone. Instead, they focus on what coffee lovers truly want — quality and a sense of connection.
These places are offering what Stone calls “an affordable luxury experience.” So instead of going out for expensive dinners, people are trading down to something more casual — like a great brunch or a fancy coffee drink.
Some of the things smaller shops are doing right include:
- Serving specialty drinks like matcha and creative cold brews
- Offering indulgent but not overly sugary flavors
- Creating Instagram-worthy interiors
- Keeping menus coffee-forward instead of chasing trends
Is flavor still a big deal for coffee drinkers?
Absolutely. But the flavors that work best are the ones that blend well with coffee — like vanilla, mocha, caramel, or hazelnut.
Melissa Mackay from Westrock Coffee explained that coffee is tricky when it comes to flavor. It leans more indulgent, so lighter flavors like Yuzu or green tea often do not pair well.
That is why Starbucks and other big chains are doing better in the “refresher” drink category. But when it comes to real coffee, smaller brands are winning by keeping it simple, rich, and high quality.
What role does cold brew and matcha play?
Younger customers especially are pushing cold brew and matcha into the spotlight. They are not drinking hot coffee like older generations used to — and they are not big on soda either. So cold coffee is now a must-have.
Ashley Peeples said this about younger drinkers: “If you do not have an option like cold coffee, which is what they want, they are drinking water.”
That is why successful coffee shops are focusing on:
- Cold brew drinks with custom flavors
- Iced matcha in creative combinations (like banana cream or white chocolate)
- Afternoon and evening cold coffee options, not just morning rushes
What does this mean for the future of big coffee brands?
It is a wake-up call. Chains like Starbucks are not just competing on price anymore — they are competing on experience. And for many customers, the connection they feel in a small café is worth more than a rewards app or a fancy name on the cup.
Stone summed it up well when he said, “I do not see that demand for more premium coffee going anywhere.”
If you are someone who loves your coffee time to feel special, you are not alone — and coffee shops that deliver on that will keep winning your loyalty.
