Starbucks is the largest coffee chain in the world, with more than 39,000 stores in 80+ countries. It holds a 40% share of the US coffee shop market, selling nearly 5 million drinks daily.
China has the largest number of Starbucks stores outside the US, with 6,806 locations. However, the brand’s market share in the country has dropped significantly, falling from 39% in 2014 to 19% in 2023, primarily due to fierce competition from local competitors.
Nevertheless, Starbucks has grown steadily over the years. In FY 2024, the company reported a revenue of $36.18 billion, up from $35.98 billion in the previous year. Its gross profit also saw a modest rise, reaching $24.9 billion compared to $24.5 billion in 2023.
Despite its popularity, you may want to explore other options that provide unique atmospheres, niche products at affordable prices, and a more personal customer experience. Below, l explore the top Starbucks competitors that combine coffee with food offerings (such as Tim Hortons and Costa Coffee), while some focus on specialized coffee experiences (Peet’s and Gloria Jean’s).
Did you know?
Frappuccinos and other cold drinks account for 75% of Starbucks’ US beverage sales, up from 37% in 2013, reflecting a clear shift in consumer preferences. [1]
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13. Pret A Manger
Founded: 1983Number of Stores: 690+
Competitive Edge: “Made today, gone today” policy ensures maximum freshness
Pret A Manger is a UK-based fast-casual restaurant chain known for its fresh, organic food and coffee offerings. It operates over 690 stores across 18 markets, with 452 Pret stores located in the UK.
The company targets busy urban professionals and commuters with pre-packaged, ready-to-eat meals. All food is prepared daily in in-store kitchens, with any unsold items donated to charities at the end of the day.
In 2023, Pret reported £1.1 billion in sales, reflecting a 20% increase from the previous year. The adjusted core profit grew by 12% to £166 million. The same year, the company entered five new markets, including Spain and India, contributing to its global growth. [2]
The first half of 2024 saw a 10% sales increase to £569 million, driven by new store openings and a 3% rise in sales from existing stores. They plan to expand their US footprint over five-fold, aiming to reach 300 stores by 2029. [3]
12. Caffè Nero
Number of Stores: 1000+
Competitive Edge: Warm and welcoming stores
Caffe Nero is a European-style coffee house chain known for its premium handcrafted coffee, inviting atmosphere, and artisanal food offerings. It is one of the UK’s leading coffeehouse brands, operating over 1000 stores in 11 countries, including Ireland, Poland, Turkey, and the US.
Unlike many competitors, Caffè Nero primarily operates company-owned stores, maintaining strict quality and brand consistency across locations. It aims to replicate the experience of an Italian café, focusing on high-quality coffee and a cozy ambiance for customers to relax or work.
Caffe Nero crafts its beverages using 100% Arabica beans, roasted in-house to create a unique and distinctive flavor profile. They also offer a variety of Italian-inspired food, including paninis, pastries, cakes, and sandwiches. In 2024, the company acquired the 200 Degrees coffee brand to expand its product offerings and strengthen its position in the UK coffee market. [4]
11. Scooter’s Coffee
Founded: 1998Number of Stores: 800+
Competitive Edge: Offers a low-barrier entry for franchisees
Scooter’s Coffee is a rapidly growing coffee chain in the US, widely recognized for its signature drink, the Caramelicious (a caramel latte available hot, iced, or blended.) A key aspect of its business model is the drive-through format, catering to customers seeking convenience without compromising on quality.
As of 2024, Scooter’s Coffee ranked as the second-largest drive-through coffee chain (trailing Dutch Bros Coffee) and held the position of the fifth-largest coffee chain in the US. It has also been featured on the Inc. 5000 list, ranking No. 2100 in 2023, an improvement of 707 spots from the previous year. [5]
10. Gloria Jean’s Coffees
Founded: 1979Number of Stores: 600+
Competitive Edge: Global presence with local adaptation
Founded in the US, Gloria Jean’s Coffees became an Australian success story after the brand’s expansion into international markets. Today, it offers a broad range of specialty coffees, teas, and beverages, emphasizing high-quality ingredients and handcrafted preparation. The band is popular for its signature blends like Flavored Lattes and Chillers (iced blended drinks).
Gloria Jean’s operates predominantly through a franchising model, enabling rapid international expansion and seamless adaptation to local coffee cultures—a key factor behind its global success.
In 2024, Retail Food Group, Gloria Jean’s parent company, acquired CIBO Espresso for US$ 1.67 million, planning to convert its 22 South Australian outlets into Gloria Jean’s stores. Plus, the company is actively pursuing growth opportunities in the US and Europe to further expand its international footprint. [6]
9. Dutch Bros Coffee
Number of Stores: 950+
Competitive Edge: Prioritizes personalized customer interactions
Founded in Grants Pass, Oregon, Dutch Bros Coffee has rapidly expanded to become the third-largest coffee chain in the United States, operating at 950+ locations across 18 states. It initially adopted a franchising model but transitioned to opening only company-owned stores in 2017.
The company primarily operates drive-thru coffee stands, focusing on convenience and speed of service. They emphasize a vibrant and engaging customer experience, with enthusiastic staff known as “broistas” who contribute to a lively atmosphere. This unique approach fosters strong customer loyalty and sets Dutch Bros apart from its competitors.
The company has grown at a phenomenal rate in recent years. In FY 2024, it reported $1.19 billion in revenue, reflecting a 30.53% year-over-year increase. Looking ahead, Dutch Bros has set an ambitious goal of expanding to 4,000 locations within the next 10 to 15 years. [7][8]
8. Caribou Coffee
Founded: 1992Number of Stores: 750+
Competitive Edge: Midwest roots and loyalty
Caribou Coffee offers specialty coffee, tea, smoothies, and baked goods, focusing on high-quality ingredients and customer experience. They are known for cozy, rustic store designs that create a community-centric vibe.
The company emphasizes high-quality, ethically sourced coffee and innovative beverages, making it a beloved brand in the US Midwest and beyond. They were among the first coffee chains to commit to 100% Rainforest Alliance Certified™ coffee, appealing to environmentally conscious consumers.
In recent years, the company has undertaken several strategic initiatives to enhance its market presence. For example, in 2024, Caribou selected Toast’s Enterprise Solutions to modernize its point-of-sale systems across all company-owned locations, aiming to enhance operational efficiency and guest experience. [9]
7. The Coffee Bean & Tea Leaf
Founded: 1963Number of Stores: 1,100+
Competitive Edge: Offers a broader tea menu
The Coffee Bean & Tea Leaf (CBTL) is a globally recognized coffee and tea chain known for handcrafted beverages. While it lacks the scale of Starbucks, its quality-driven approach and unique drinks make it a formidable competitor.
The company specializes in small-batch coffee roasting and premium tea leaves sourced directly from plantations. Its handcrafted beverages include cold brews, lattes, and its signature Ice Blended® drinks. They customize their offering based on regional preferences, such as unique tea blends or culturally relevant snacks.
CBTL operates a mix of company-owned and franchised locations, with a strong presence in Asia and the Middle East. To capitalize on the growing coffee market in India, the company plans to open 250 new cafés across the country by 2029. [10]
6. Peet’s Coffee
Founded: 1966Number of Stores: 380+
Competitive Edge: High-quality roasts and craft coffee
Founded in California, Peet’s Coffee is a premium coffee roaster and retailer that has built a reputation for its high-quality, freshly roasted beans and artisanal brewing techniques. It pioneered the “Fresh Coffee Revolution,” roasting coffee in small batches for optimal freshness. [11]
It offers 100% Arabica beans and focuses on single-origin and specialty blends. Unlike mass-market brands, Peet targets connoisseurs of fine coffee who prioritize quality over convenience.
The company operates more than 380 stores in the US, China, Saudi Arabia, and the UAE. It also sells packaged coffee and ready-to-drink products in 14,000+ grocery stores across the US.
5. Luckin Coffee
Founded: 2017Number of Stores: 21,300+
Competitive Edge: Tech-driven operations
Founded in 2017, Luckin Coffee quickly gained fame by leveraging mobile app orders, low pricing, and aggressive expansion to capture a significant share of China’s fast-growing coffee market. It has become China’s largest coffee chain, surpassing competitors like Starbucks in both store count and sales.
Strategically, Luckin focuses on small, pickup-only stores, reducing overhead costs associated with larger, dine-in cafés. This model allows for rapid expansion and accessibility.
The company customizes beverages to match local preferences, such as “Luckin Coconut Latte,” one of its most popular drinks. In 2023, Luckin sold 10 million cups of “Moutai Latte” (a coffee mixed with Chinese liquor) within a month of its launch, showcasing its ability to innovate and capture local tastes.
That same year, their annual revenue reached $ 3.4 billion, representing a remarkable 87.3% year-over-year growth. This figure surpassed Starbucks’ China revenue of approximately $3.16 billion. [12]
4. Costa Coffee
Founded: 1971Nothing says festive than our Caramel Nutcracker Hot Chocolate
topped with caramel sauce and red and green sprinkles ❤️ 🎄 pic.twitter.com/xRFXDCVJG3— Costa Coffee (@CostaCoffee) December 8, 2024
Number of Stores: 4,100+
Competitive Edge: Operates 15,800+ Costa Express machines
Founded in 1971 in London by the Costa brothers, Costa Coffee has been operating as a subsidiary of The Coca-Cola Company since 2019. The brand has a strong presence in the UK and a growing global footprint.
More specifically, Costa Coffee has the highest number of outlets in the UK, operating 2,677 locations. It is closely followed by Greggs with 2,474 outlets, while Starbucks ranks third with 1,266 locations. [13]
The company operates primarily through company-owned stores, complemented by franchise partnerships, especially in international markets. This hybrid model allows for both centralized control over brand standards and localized adaptability.
A key component of their strategy is their Costa Express self-service coffee machines. With more than 14,200 machines in the UK and over 1,600 globally, the brand extends its presence beyond traditional cafés, making its coffee accessible in locations such as gas stations and convenience stores. [14]
3. Tim Hortons
Founded: 1964Number of Stores: 5,800+
Competitive Edge: Strong presence in Canada
Tim Hortons, affectionately called “Timmies,” is Canada’s biggest coffee and quick-service restaurant chain. Its connection to Canadian values—like warmth, comfort, and community—sets it apart from the competition.
The brand leads Canada’s breakfast market with its breakfast sandwiches, wraps, and bagels, which complement its coffee offerings. Unique items like Timbits (bite-sized donut holes) are popular and have strong customer appeal.
Tim Hortons serves more than 2 billion cups of coffee every year. In 2023, they made $3.97 in revenue and $958 million in net income. [15]
2. McDonald’s McCafé
Founded: 1993Number of Stores: 41,800+ (McDonald’s)
Competitive Edge: Leverages McDonald’s established global footprint
McCafé operates as a sub-brand within McDonald’s restaurants, leveraging the parent company’s infrastructure to provide coffee and related beverages. Most McCafés are integrated into McDonald’s outlets, making them accessible to a massive customer base.
They have capitalized on rising coffee consumption trends by integrating their coffee offerings into markets worldwide. Their pricing is substantially lower than Starbucks, with drinks often costing 30–50% less.
As the parent company, McDonald’s has shown remarkable consistency in its growth, increasing its restaurant count annually for nearly two decades, including during the COVID-19 pandemic. By 2023, McDonald’s operated and franchised over 41,800 restaurants globally, up from 40,200 in the previous year. [16]
In the same year, McDonald’s secured its position as the world’s most valuable fast food brand, with an estimated brand value of $191 billion. In comparison, Starbucks’ brand value stood at $61.5 billion.
1. Dunkin’
Number of Stores: 13,700+
Competitive Edge: Robust breakfast menu at a lower price point
Dunkin’ is one of the world’s largest coffee and baked goods chains, known for its fast, affordable coffee and donut offerings. Positioned as a fast-food coffee chain, it prioritizes speed, affordability, and convenience. Its stores are often located near gas stations, transportation hubs, and high-traffic areas to cater to on-the-go customers.
Compared to Starbucks, which is known for its premium coffee
Caribou Coffee enters long-term strategic CPG license agreement with JDE Peet’s and ambiance, Dunkin’ is often perceived to have better food options at more affordable prices. Unlike Starbucks, Dunkin’ operates primarily through a franchise model, reducing its operational costs and financial risks. [17]
In the US coffee market, Dunkin’ holds a 26% share compared to Starbucks’ 40%. Globally, it serves over 4.5 million customers daily across 38 countries. Dunkin’ also boasts a robust customer loyalty program, DD Perks, with over 12 million members. [18]
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Sources Cited and Additional References- Business Articles, Starbucks redesigned its cups, USNews
- Eri Sugiura, Pret A Manger’s global sales surge above £1bn, Financial Times
- Deborah Mary Sophia, Pret A Manger targets 300 US stores by 2029 in expansion push, Reuters
- Matt Bunn, Caffè Nero buys 200 Degrees coffee brand, BBC
- News, Scooter’s Coffee again recognized as one of the nation’s fastest-growing companies, Yahoo Finance
- News, Australia’s Retail Food Group acquires CIBO Espresso, World Coffee Portal
- Company Financials, Dutch Bros’s revenue over the years, Macrotrends
- Neil Patel, Can Dutch Bros Stock Beat the S&P 500 Between Now and 2030?, Fool
- News, Caribou Coffee enters long-term strategic CPG license agreement with JDE Peet’s, Yahoo Finance
- News, Coffee Bean & Tea Leaf to expand franchise development in India, Yahoo Finance
- Commitment To Craft, We source coffee beans from the world’s best-growing regions, Peets
- Financial News, Luckin Coffee’s Q4 and full year 2023 financial results, Luckin Coffee Inc.
- Food & Drink Services, Leading coffee shop chains in the UK, Statista
- About Page, Costa Express operates in 20 international markets, Costa Express
- Fresh Facts, We serve more than 2 billion cups of coffee, Tim Hortons
- Food & Drink Services, Number of McDonald’s restaurants worldwide, Statista
- Dunkin’ Donut, A case study in customer loyalty, Reward The World
- News, Major chains driving US coffee shop growth but overall market slows, World Coffee Portal
