Foot Traffic Dipped In April For These Coffee Giants

Inflation is squeezing some coffee chains as foot traffic dipped last month for a few of the major players in the sector. 

Starbucks stumbled in April, according to data from Placer.ai, with visits down 1.9% for the week ending April 11 compared to the same week in 2019. Dunkin’ also had a similar fate, with visits down 1.8% in the same period.

But those numbers need to be properly contextualized, cautions Placer.ai’s Shira Petrack: “Pulling in foot traffic within a percentage point or two of pre-pandemic performance is quite a feat in the current economic climate,” she writes in a new analysis of the April data. “Due to the high inflation rates and rising gas prices, many consumers are now spending more on essentials, which means that their budget is tighter—even if their spending habits have not changed.”

Petrack also noted that the Starbucks community store concepts, which launched in 2015, appear to be performing better than other locations. For example, the Starbucks community store in Dallas has seen “consistent growth” in foot traffic since opening in 2018, and maintained that momentum during the pandemic.

“The relative strength of this store shows just how much value a business can get out of focusing on the local level,” she writes. “Prioritizing collaborations with local businesses, providing employment opportunities, and consciously cultivating community engagement does not just benefit the locals, it also sets the coffee shop up for business success.”

One outlier/? Dutch Bros., a chain that’s rapidly expanding across the US and picking up market share as it grows. During the week of April 11, visits were up almost 134% compared to the same week in 2019, and visits that week were still up nearly 10% in comparison to the same week in 2021.

“Whether it’s the famously friendly service or festively colored drinks, a visit to Dutch Bros. may feel like welcome respite during these uncertain times,” Petrack says. “As inflation rates continue to rise, there is every reason to think that foot traffic will remain on its growth path.”