In the United States, drive-thru cafes that tout "fast service" are rapidly multiplying. While the U.S. food and beverage industry is generally sluggish, drive-thru cafes are expanding their stores at a swift pace.
On the 28th (local time), the Financial Times (FT) of the United Kingdom reported that "drive-thru chains with barely any seating and just 33.7m² of production space are shaking up the U.S. food and beverage industry with an obsession with fast service." Dutch Bros, 7 Brew, Biggby Coffee, Scooter's Coffee, and Black Rock Coffee Bar are representative drive-thru cafe chains.
The biggest advantage of drive-thru cafes is, without question, their "fast service speed." Mark Davis, CEO of Black Rock Coffee Bar, said in an interview that the company aims to process drive-thru orders within 90 seconds. He explained, "When you're in the drive-thru lane, a skilled barista known as a 'line buster' comes out to interact directly with customers and helps ensure the order is completed within 90 seconds."
The very concept of the "drive-thru" first appeared in the 1930s. But with social distancing emphasized during the COVID-19 pandemic, drive-thru cafes gained popularity, and FT noted that the trend has continued as consumers remained accustomed to the format even after the pandemic ended.
A Scooter's Coffee franchisee said, "People no longer want to go inside and sit." Biggby Coffee President Erin Kailer also said, "People think there's no need to go to the store and chat; they can just order coffee at the drive-thru and drink it."
In fact, according to the latest survey by the National Coffee Association of the United States, 59% of consumers who purchased coffee used a drive-thru cafe, the highest on record. That figure is up 5 percentage points from 54% the previous year in just one year.
Buoyed by their popularity, the number of stores is also growing fast. Scooter's Coffee has roughly tripled its store count over the past five years, and Dutch Bros, which now has more than 1,000 locations, is expanding from the West to the East and opening three new stores a week. Black Rock Coffee aims to increase its store count by 20% every year through 2035.
The operating model of drive-thru chains contrasts with Starbucks, the largest U.S. coffee chain, which focuses on the in-store customer experience. Starbucks CEO Brian Niccol is investing heavily to make stores appealing spaces where people "connect and gather." Starbucks has 17,000 stores in the United States, but fewer than half have a drive-thru window.
The expansion of drive-thru cafes touting fast service and low investment costs is expected to continue for the time being. According to Advan Research, based on foot-traffic data in the second quarter, the market shares of Scooter's, Dutch Bros, and 7 Brew rose by 1.5 percentage points year over year, while Starbucks grew just 0.3%. Thomas Paulson, head of market analysis at Advan Research, said, "All the other players lost share."
Kevin Schimpf, senior principal of industry research at consulting firm Technomic, said, "Starbucks has dominated the coffee shop market for years, but consumers now increasingly find it appealing that they can choose other chains."