Franchise News
As demand tilts toward flexible menus and faster service, several expanding brands — including those backed by major franchise operators — are starting to pull more attention from longtime leaders.
Starbucks and Dunkin' still control the vast majority of United States coffee sales, but recent reporting from The Wall Street Journal and industry analysts shows that the category is becoming more dynamic — and increasingly shaped by the rise of mid-sized and fast-growing concepts.
Dutch Bros. Coffee continues to spark conversation with its standout performance among Gen Z consumers. While Dutch Bros. itself is not a franchise, the reasons behind its momentum are informing how franchise brands — and major franchise operators — approach the next phase of growth.
Dutch Bros has defied broader traffic declines, posting increased visits and spending from younger consumers while raising its fiscal 2025 guidance. What’s notable is that the brand’s strategy relies less on splashy reinvention and more on dialing in consistent execution: maintaining its energetic “broista” culture; leaning into colorful, social-media-ready beverages; refining operations to shorten drive-thru lines; and strengthening its digital and rewards channels. Its approach highlights what today’s younger coffee drinkers respond to: convenience, customization and a sense of fun.
That playbook helps explain the surge of interest around 7 Brew — a franchise concept that has rapidly expanded nationwide and is drawing significant investment from major operators. Flynn Group — the country’s largest franchise operator — has also stepped into the category, signing on to build 160 new 7 Brew drive-thru coffee locations. 7 Brew closed 2024 with 321 stores and more than $500 million in sales, a sharp climb for a brand that only launched in 2017.
Those moves come as Starbucks and Dunkin’ work through softer traffic and more competition at home and abroad. The growing interest in franchise-backed, drive-thru coffee concepts points to a market that may look a lot broader and more varied than it did even a few years ago.
Read the Wall Street Journal article here.
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