Coffee is all about ritual—the smell of the beans, the personalization of cream and sugar and the comfort of enjoying the cup, whether it’s in your kitchen, your car or at a cafe. And while routine is central to the coffee experience, customer behavior points to a paradigm shift when it comes to where people choose to get their morning joe.
Since 2019, small and mid-sized chains have increased their share of the market. According to Placer.ai, which conducts location and foot traffic analytics, the share of visitors to mid-sized coffee chains like Dutch Bros grew from 10.8% to 17.6% in 2024. Small chains experienced a more modest visitor increase from 3.2% to 4.4% of the market since 2019.
Coincidentally, corporations like Starbucks have experienced a loss in customers and are desperately trying to get them back. At a Leadership Experience event in Las Vegas in June, CEO Brian Niccol told more than 14,000 store managers in attendance that the corporation is continuing “refocusing” on providing “a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas.”
Scott Jackson, an economist and assistant professor at UNLV, says the company’s turnaround strategy reflects a bit of an identity crisis.
“Starbucks is kind of in this weird space. What do they want to be branded as? The quick service coffee, like Dutch Bros? Or do they want to be your neighborhood cozy coffee shop where you can sit and get to know your barista? I think they’re trying to be both right now, and it’s kind of hard to play in both spaces,” he says.
As Starbucks works to re-establish itself as the “community coffeehouse,” other businesses like Vegas-based Mothership Coffee Roasters have taken hold.
“Starbucks was able to market the idea of the third place, and they’ve progressively removed themselves from that category,” says Mothership founder Juanny Romero.
She cites how Starbucks has removed more than 30,000 seats from its stores in recent years as they shifted to a more app-based, grab-and-go model—a move that Niccol promised would be reversed.
“It’s really funny how the CEO’s plan is just coming back to their original concept, which is for our customers to feel seen, to feel heard, to feel loved, to participate, to feel like they matter,” she says.
Mothership opened its flagship Green Valley location in 2012 and since has grown to five Valley locations and 128 employees. The roaster and cafe has announced a sixth location at Dapper Companies’ Arts District development.
The founder, who was also Mothership’s first barista, attributes its success to a strong foundation in community and connection. She says the business is much more than a sales transaction.
“I think what Mothership does is, the minute you walk in the door, whether you’re an employee or customer, you feel [like you’re a] part of it,” she says.
Romero has cultivated that culture through decisions like starting a bartering program during the pandemic, where bakers and artists could trade things like bread, cookies or jewelry for Mothership’s roasted coffee beans—“anything we could do to facilitate feeling part of the community,” she says.
Creating a good working environment is another company tenet. Romero says it’s important for every employee to feel like they have “a seat at the table.”
“Every other month, we send out a report asking for feedback, and based on that feedback, we try to fine tune our program in order to increase our retention,” she says.
And through Mothership’s philanthropic program, an added layer of significance is added to each cup of coffee.
The company has given $75,000 to organizations like Opportunity Village, Nevada Partnership for Homeless Youth, St. Jude’s Ranch for Children and more.
“If you put people before profits, the profits do take care of themselves,” she says.
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