Commentary

Big Coffee Holds Steady: Starbucks, Dunkin' Foot Traffic Level YOY

Coffee, and coffee QSRs and fast-casuals, faced some tough times (like us all) in 2024. From the rising price of importing coffee beans themselves to consumers having less discretionary income for their daily latte, we would expect to see foot traffic to the local Starbucks and Dunkin’ to also have been negatively impacted.

Yet a recent report, “Coffee Fix: Starbucks and Dunkin’ in 2024,” from foot traffic firm Placer.ai, says otherwise. Traffic to the two coffee giants remained relatively flat as compared to 2023.

Both companies experienced their share of drama in 2024. Starbucks, after reporting same store sales were down almost 7% YOY in Q2, brought in new CEO Brian Niccol, who has promised to bring back the chain’s “coffeehouse roots.” Dunkin’ dealt with a backlash from conservatives mid-year, after it was revealed the brand refused to advertise on the site Rumble, which hosts programming from controversial right-wing pundits, as covered in the Seattle Times.

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Yet neither of the above rumblings had little impact on either chain’s foot traffic, per Placer.ai, as “2024 visits to both Starbucks and Dunkin’ remained close to 2023 levels."

"Both Starbucks and Dunkin' Brands faced increased competition for visits from smaller, drive-thru oriented coffee chains in 2024, including Dutch Bros., Scooter’s Coffee, 7 Brew Coffee, and Biggby Coffee,” Placer.ai’s Head of Analytical Research R.J. Hottovy told Marketing Daily. “In the year ahead, we expect both chains to focus on improved customer experience, a more streamlined menu to remove operational complexity, and mobile ordering refinements."

Another reason Starbucks held on to actual foot traffic despite a decrease in sales were various promotions and calendar events held over the course of the year. The chain’s Red Cup Day, Mother’s Day discounts, and BOGO offers saw visit increases ranging from 28.1% to 40.4% higher than the 2024 daily visit average. And the holiday season in general seems to resonate with Starbucks’ customers. The chain still received major traffic spikes on key shopping days, such as Super Saturday and Black Friday, as visits surged 27.5% and 26.6% above the YTD daily average, respectively.

The vast majority of visits to Starbucks are under ten minutes, with mobile orders accounting for nearly one third of sales. The report cites that may change in 2025 under Niccol’s tutelage as he strives to elevate the in-store experience through “creation of an inviting and welcoming community coffeehouse.” Those initiatives include the chain’s new free refills for all in-store customers offer and a new “code of conduct,” which prohibits patrons from lingering without making a purchase.

The report also revealed the two chains have split the day in terms of in-person visits; During the early morning daypart (6:00 - 9:59 AM), Dunkin’ attracted 39.9% of its visitors, while Starbucks received only 29.9% of its customers before 10 AM. However, as the day transitioned into evening, Starbucks took the lead, capturing 23.7% of visitors during the 3:00 - 6:59 PM daypart, significantly higher than Dunkin’s 16.4%. 

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