A brand new coffee chain could also be headed to a city close to you, and it’s not Starbucks or Dunkin’.
Many Americans possible haven’t heard of 7 Brew, which has solely been round since 2017 when it opened its first location in Rogers, Arkansas. The chain has since grown to over 700 places in 38 states, with about 340 extra on the best way, however can’t be present in airports, indoor buying malls or busy road corners in main US cities. Instead, it operates via drive-thrus and walk-up home windows in parts of the nation with little-to-no coffee competitors.
The progress of 7 Brew and different quickly increasing beverage chains, together with rivals like Dutch Bros and soda-focused Swig, reveals that Americans are maybe unwilling to surrender fast treats throughout arduous instances.
Budget-conscious Americans have balked at rising quick meals costs in recent times, resulting in pullback at companies like McDonald’s and Burger King. Meanwhile, 7 Brew has carried out properly on this financial system: Sales jumped from $502 million in 2024 to just about $1.2 billion final 12 months.
“Coffee is perfectly an affordable luxury, because it offers that daily indulgence,” stated Sharaya Jones, a advertising and marketing professor at George Mason University. “Some coffee shops are expensive, but usually it’s under $10 to have this really special moment.”
Pricing and menu selection
7 Brew’s small non-dining areas assist restrict working prices, making up for smaller revenue margins on drinks in comparison with chains like Starbucks.
Jones notes that coffee, significantly for youthful customers, is “a category where consumers are increasingly price-sensitive… being perceived as more affordable than Starbucks, or other local coffee shops, can help drive repeat visits and build loyalty quickly.”
As 7 Brew expanded, it has additionally broadened its customizable drinks — it began out with seven drinks, therefore the identify 7 Brew. It now has greater than 20,000 drink mixtures. And 7 Brew doesn’t cost for many customizations, corresponding to additional flavors, milk options, whipped cream and drizzles.
When Charlese Mitchell ordered a blondie drink with caramel and funnel cake and her buddy Sydney Richardson purchased a coconut, strawberry and cupcake-flavored soda at a 7 Brew in Abingdon, Maryland, in April, the pair have been shocked. They paid $5 for every of their drinks — half what they anticipated.
“Five dollars is crazy,” stated Richardson.
7 Brew’s loyalty program may be interesting as a consequence of how simple it is to earn a free drink, in accordance with Robert Byrne, senior director of client analysis at meals trade analysis agency Technomic. That’s nice for Americans, who Byrne says need to spend at eating places at any time when they’ve additional money.
“We need those treats, those little miniature food service serotonin hits,” he stated.
The chain additionally lures clients with free t-shirts and drinks at new locations, limited-time giveaways and reductions for first responders.
At a Starbucks close to San Antonio, a 24-ounce iced blonde vanilla latte prices about $6.55 when ordering via the app. A close-by Dunkin’ bought a medium iced latte for $5.49, whereas a close-by Dutch Bros charged $4.95, in accordance with on-line ordering. At 7 Brew, a 24-ounce iced blondie — a vanilla and caramel breve combination — can price as little as $5.15, whereas a medium iced latte could price as little as $4.75, in accordance with the corporate.
Mayra Okechukwu, an influencer in Utah, informed NCS she goes to 7 Brew about 3 times per week, and now prefers the drive-thru chain over Starbucks as a consequence of its decrease costs.
“When I had to pay (at 7 Brew), I was really surprised. I was like, ‘Oh, that’s way cheaper for such a good amount of coffee,’” Okechukwu stated. A typical medium iced latte at 7 Brew is the identical measurement as the most important iced coffee at Starbucks shops.
7 Brew’s drive-thru format largely borrows from established chains like Dutch Bros, which opened in 1992 as a pushcart in Oregon, and Scooter’s Coffee, which opened its first Nebraska kiosk in 1998.
Not solely has 7 Brew replicated their small stand codecs, it additionally sells muffin tops, equally to Dutch Bros. And its vitality drinks, soda, smoothies and different drinks will also be discovered at Dutch Bros and Scooter’s, which every have greater than 20 flavors.
Such chains are positioned as extra handy than stand-alone cafes and largely enchantment to commuters and households going to and from college.
Those chains are nonetheless bigger than 7 Brew: Dutch Bros has over 1,000 places in 25 states and Scooter’s Coffee has over 850 places.
7 Brew’s fast growth this 12 months is largely made potential by Blackstone, which made a progress fairness funding within the firm in 2024, and Franchise Equity Partners, which acquired a majority stake within the chain’s second largest franchisee to open greater than 200 new stands. The model has additionally gone viral on social media.
But on the identical time, franchises are “not going to be able to implement the changes that are necessary to keep up with trends, customer demands, keep the uniformity of the system,” stated to Nick Setyan, a Mizuho Group analyst.
Traditional coffeehouses nonetheless have their enchantment as sit-down cafes, probably providing distant workspaces and room to socialize. That enchantment of a “third space” is a big half of why individuals purchase coffee, Jones, the GMU professor, stated.
Starbucks final 12 months introduced a plan to win again clients that targeted on the model’s coffeehouse tradition. The main coffee chain had reported weaker gross sales in recent times, partially as a consequence of elevated competitors and clients who have been exhausted by excessive costs.
That new plan appears to be paying off. Comparable retailer gross sales within the US rose about 7% in the course of the second quarter of this 12 months.
It’s arduous for 7 Brew to compete with coffeeshops that function “third spaces.”
“(7 Brew has) baristas who come up to your car, and it is interactive … but there’s just the loss of the experience, the atmosphere,” Jones informed NCS.
Still, Okechukwu, the Utah-based influencer, says she would often skip Starbucks as a result of of its lengthy wait instances, whereas 7 Brew is handy for work commutes.
Customers are usually out and in of 7 Brew sooner than different chains: time spent at 7 Brew stands averaged 8.7 minutes in the course of the third quarter final 12 months, in accordance with Placer.ai. That’s lower than the ten minutes at Dutch Bros and the 13.8 minutes at Starbucks.
Jesslynne Mann, a 23-year-old graduate pupil and mom in Kentucky, informed NCS that there are few different choices for coffee in her city, except for costly domestically owned specialty retailers and Dunkin’, which lacks constant high quality. A mom-and-pop store usually expenses about $9, she stated.
Meanwhile, she racks up free drinks with 7 Brew’s loyalty program and infrequently makes use of 7 Brew as a “date night” along with her accomplice. The couple take time to price the orders of their notes app.
“People enjoy being able to build memories around something, and it just breaks up a long stressful day,” she stated.