The top Starbucks Competitors are Costa Coffee, McDonald’s McCafe, Dunkin, Folgers, Tim Hortons and others. Starbucks Corporations is a coffee company founded in the USA in the year 1971 and operates worldwide. As at 2022, Starbucks is operating in more than 35,711 locations worldwide with an average of 402,000 employees. Its assets stood at $28.733B with a net operating income of $1.584B as of June 30, 2023. As a representative of ‘second wave coffee,’ Starbucks is known for its distinguished quality coffee, top notch customer service and best-tasting coffee made from espresso machines. Starbucks revenue for the quarter ending June 30, 2023 was $9.168B. Starbucks market cap as of August 17, 2023 is $113.37B.
Some of its widely known products include Caffe Latte, espresso, Teavana tea products, fresh juices like Frappuccino and snacks including chips and crackers not to mention bottled coffee drinks, appetizers, wines and ice cream.
Table of Contents
Top Starbucks competitors
Direct Starbucks Rivals
1) Costa
- Product Type: Coffeehouse chain
- Industry: Food and beverage
- Founded: 1971
- Founders: Sergio and Bruno Costa
- Headquarters: London, England, United Kingdom
- Area served: Over 30 countries and territories
- Current CEO: Dominic Paul
- Number of employees: 29,000 (2022)
Costa Coffee is the biggest competitor of Starbucks. It is the second largest coffeehouse in the world after Starbucks and the largest in the UK. Founded in 1971 in the UK, Costa coffee has expanded to over 4000 stores in over 41 countries. As of April 18, 2023, there were reported to be 13,540 Costa Coffee locations in the United Kingdom. Mid this year, Costa coffee moved its coffee roaster to Essex. An investment that cost a close to 40 million pounds. This, in turn, increased the roasting capacity to 44,000 tons of coffee beans from the initial 11,000 tons in a year.
Curious about the latest insights into the coffee industry?
Updated Industry Insights: In 2023, the global coffee market has been witnessing a significant shift due to the increasing popularity of specialty coffee and sustainable sourcing. According to a report by the Specialty Coffee Association, the specialty coffee sector is projected to grow at a CAGR of 7% between 2021 and 2026. This trend is being driven by consumer demand for transparency in sourcing and an appreciation for unique coffee flavors, which presents both opportunities and challenges for major players like Starbucks and its competitors.
Practical Advice or “Quick Tips”: Coffee enthusiasts looking to enhance their at-home coffee experience might consider investing in a burr grinder. Unlike blade grinders, burr grinders create more consistent coffee grounds, which is crucial for achieving balanced flavors in your coffee. Experimenting with the grind size can also make a significant difference; finer grinds are ideal for espresso, while coarser grinds work best for French press coffee. For further guidance, refer to the Specialty Coffee Association’s online resources.
This company reaches to its customers through its advertising slogan ‘a coffee for every mile’ whose aim is to have as many coffee shops as possible. Costa Coffee is also probably the only Starbucks Competitor on this list which exclusively deals and promotes its coffee. All other starbucks competitor have a combination of different products to offer.
2) McDonalds McCafe
- Product Type: Coffeehouse chain owned by McDonald’s
- Industry: Food and beverage
- Founded: 1993, Melbourne, Australia
- Founders: Richard McDonald and Ann Brown
- Headquarters: Oak Brook, Illinois, United States
- Area served: Over 15,000 restaurants in over 100 countries and territories
- Current CEO: Chris Kempczinski
- Number of employees: Over 1 million (2022)
McCafe is strongly coming up as one of the Starbucks Competitor which is gaining market share. This is because of the backing it has with the huge number of McDonald’s stores across the globe. This coffee house not only specializes in coffee but food and other beverages as well. It was formed in Australia in the year 1993 and is a true reflection of espresso coffees.
In 2023, McDonalds itself had 40275 stores. Most McDonalds stores do not have a McCafe associated with them but McCafe is expected to have 4500 stores across the globe as per reports. McCafe was among the top three coffee sellers with over $1.4 billion in sales. However, this is set to increase after McCafe upgraded its equipment to ensure consistency in the taste of its coffee.Currently, it’s ranked the largest in New Zealand and Australia. McCafé is also targeting significant expansion in China, with plans to launch 1,000 new locations by the end of 2023.
3) Dunkin Donuts
- Product Type: Coffee and donut shop
- Industry: Food and beverage
- Founded: 1950, Quincy, Massachusetts, United States
- Founders: William Rosenberg
- Headquarters: Canton, Massachusetts, United States
- Area served: Over 12,800 restaurants in 40 countries and territories
- Current CEO: David Shear
- Number of employees: 225,000 (2022)
- Market capitalization: $8.77 Billion (August 2023)
Dunkin is a donut company as well as a coffee house based in Massachusetts USA. Founded in 1950, it has expanded to become one of the largest baked food and coffee chain in the world. Dunkin’ Donuts offers more than 50 varieties of doughnuts, including premium beverages, bagels, and breakfast sandwiches.
As of 2022, Dunkin’ Donuts operates in nearly 60 countries with over 20,000 locations. There are 9,433 Dunkin Donuts locations in the United States as of May 23, 2023.
In terms of production, Dunkins produces 8% donuts, 65% drinks and 27% of other food items. Its presence in 60 countries itself tells the success story of the company.
4) Café Coffee Day
- Product Type: Coffeehouse chain
- Industry: Food and beverage
- Founded: 1996, Chikmagalur, Karnataka, India
- Founders: V. G. Siddhartha
- Headquarters: Bengaluru, Karnataka, India
- Area served: India, Nepal, and Sri Lanka
- Current CEO: Malavika Krishna (Interim)
- Number of employees: Over 25,000 (2022)
- Revenue: 223.20 crore (June 2023)
Café Coffee Day is another global company and largest Arabica beans producer and Exporter in Asia. Started in 1996 CCD is now a world brand with its initial investment capital estimated to be over 160 million dollars. The company is well known for vertically cutting down on costs; this is from owning Arabica coffee plantations, making furniture for its outlets and also making coffee machines. Even though it started in Asia, it has expanded to some countries in Africa, Czech Republic, and Nepal.
Coffee Day Global Ltd. (CDGL), which operates coffee chain Cafe Coffee Chain has 50,870 vending machines in June quarter of 2023 which went up from 46,603 in 2022. ASPD (average sales per day) increased to 20,824 in the June quarter. However, the number of retail stores for CCD reduced to 467. It was operating 493 outlets upto June 2023.
Indirect Starbucks Rivals
5) Independent Fast food chains & Bakeries
Coffee is not only sold in large chains but it is also sold in local bakeries and small coffee centers. In fact, travel sites are generally full of coffee shops you should experience in a place that you visit. These coffee shops are famous for their personalized service and the friendly staff whom you know very well. As a result, the 100’s of coffee shops around the corner are the most widespread Starbucks Competitor and a true competitor for the coffee chain. Starbucks has itself strived hard to become the coffee shop around the corner. But across the world, there are many many coffee shops which become an unorganized Starbucks Competitor.
6) McDonalds
Starbucks does not serve only Coffee but it also has small pizza’s and other eatables to accompany the coffee. When we take the coffee out of the equation, Starbucks is literally a fast food place as well. As a result, McDonalds can be considered a strong Starbucks Competitor. McDonald’s is an American Fast foods store chain that was founded in the year 1940. McDonald’s operates in over 100 countries around the globe. As of 2022, McDonald’s had a total of 40,275 restaurants worldwide. The United States has the highest number of McDonald’s restaurants, with 13,375 locations.
McDonald’s net income for the quarter ending June 30, 2023 was $2.310B.
To respond to different consumer tastes and preferences, McDonald’s also sells chicken products, cheeseburgers, wraps, milkshakes, desserts, salads, fish, soft drinks, smoothies and a variety of breakfast items. Its marketing strategies include franchising and change of logo. McDonald’s also receives additional revenues from royalties, rent, and fees paid by franchisees. Even though it started as a hamburger stand, its marketing techniques have propelled it to the global map.
7) Kentucky Fried Chicken (KFC)
- Product Type: Fast food restaurant that specializes in fried chicken
- Industry: Food and beverage
- Founded: 1952, North Corbin, Kentucky, United States
- Founder: Colonel Harland Sanders
- Headquarters: Louisville, Kentucky, United States
- Area served: Over 24,000 restaurants in over 150 countries and territories
- Current CEO: David Gibbs
- Number of employees: Over 800,000 (2022)
- Net Profit: 607.2 million rupees (quarter ended March 31)
KFC is the world largest restaurant chain that specializes in fried chicken. Its headquarters in Kentucky USA oversee operations of 27760 branches worldwide in more than 120 countries. Founded in 1952, KFC managed to popularize and market fast food chicken though franchising and advertising. Advertising was done on televisions with the initial advertising budget estimated to be around 4 million Dollars. In the late 1960s, KFC hired a national advertising agent by the name ‘Leo Burnett’. In the mid-1970s, the Leo Burnett campaign dubbed ‘get a bucket of chicken’ made KFC one of the most popular fast food chains in the USA.
KFC generated a revenue of approximately 2.83 billion U.S. dollars in 2022.
Currently, its food menu has expanded to include french-fries, salads, side dishes, coleslaws and soft drinks among others.
Indirect Starbucks Rivals in coffees alternative Segment
These are mostly preferred tea brands competitors that provide an alternative to Coffee. Naturally, they are indirect Starbucks Competitors.
8) Tazo
- Product Type: Herbal tea brand
- Industry: Food and beverage
- Founded: 1994, Seattle, Washington, United States
- Founders: Steve Smith and Tazo Tea Company
- Headquarters: Seattle, Washington, United States
- Current CEO: Michelle Gass
Tazo Tea Company, now a division of Lipton Teas and Infusions, is based in Kent, Washington. However, its headquarters were originally located in Portland, Oregon at 301 SE Second Avenue. Tazo has a global presence and its products are available worldwide.
Tazo Tea Company is a tea and herbal tea blender and distributor founded in Portland, Oregon in 1994 by Steven Smith. The company was purchased by Starbucks in 1999 for $384 million and is now a division of Ekaterra and is based in Kent, Washington. Tazo offers a variety of unique black tea, green tea, and herbal tea in the form of hot and iced teas, lattes, K-Cup pods, tea bags, and sachets. In 2017, Starbucks sold Tazo to Unilever, which owns Lipton, for an undisclosed amount, as sales had been disappointing. However, Tazo still remains an indirect competitor of Starbucks.
9) Twinings
- Product Type: Tea brand
- Industry: Food and beverage
- Founded: 1706, London, England, United Kingdom
- Founder: Thomas Twining
- Headquarters: Andover, Hampshire, United Kingdom
- Current CEO: Tim Stock
Twining is owned by the British Food Association. Its brand of tea has gained international recognition due to its concentration, flavors, and Aroma. Since its inception in the year 1706, it still maintains its market value and popularity. Twining tea contains a lot of caffeine that acts a stimulant thereby helping one to be an active whole day long. Twining offers a wide range of tea blends including black tea, green tea, herbal tea, decaffeinated tea, caffeinated tea, and fruit tea.
10) Tetley
- Product Type: Tea brand
- Industry: Food and beverage
- Founded: 1837, Yorkshire, England, United Kingdom
- Founder: Joseph Tetley
- Area served: Over 100 countries and territories
- Current CEO: Massimo Garavaglia
Tetley is one of the largest UK tea company. Tetley is also the market leader in Canada and has been voted Canada’s Most Trusted Brand of tea. In the whole world, it’s the second largest tea manufacturer. With specialization and expertise, Tetley produces over 65 different tea flavors all over the world. In 2014 alone, it was estimated to have around 6.6 million consumers in the UK alone. In the year 2006, for marketing reasons and to achieve dominance, Tetley brand was purchased by Tata group at $1.4 billion dollars and rebranded to Tata tea which is currently the second largest tea manufacturer in the world after Unilever.
11) Dilmah
- Product Type: Tea brand
- Industry: Food and beverage
- Founded: 1988, Colombo, Sri Lanka
- Founder: Merrill J. Fernando
- Headquarters: Colombo, Sri Lanka
- Current CEO: Dilhan C. Fernando
- Revenue: 11.436 billion (2022)
Dilmah Tea Company, officially known as Dilmah Ceylon Tea Company PLC, is a Sri Lankan beverage company that is best known for its brand of Ceylon tea. It was founded in 1974 in Sri Lanka where tea was famously referred to us Silone Tea. It later expanded to Indonesia, Turkey and 90 other countries. Dilmah Tea is now a global brand thanks to the advertising and endorsement on the team jerseys’ by the Sri Lanka national Cricket team. As of 2023 Dilmah is the 10th largest tea brand in the world. Dilmah is owned by parent company MJF Holdings
Some of its brands include green tea, flavored tea, masala chai, Ceylon tea, herbal infusions, iced tea et cetera.
12) The Republic of Tea
- Product Type: Tea brand
- Industry: Food and beverage
- Founded: 1992, Mill Valley, California, United States
- Founders: Bill Schlieper and Jodi Schlieper
- Headquarters: Mill Valley, California, United States
- Current CEO: Todd Rubin
The Republic of Tea is a privately owned American tea company based in Larkspur, California, that makes and sells more than 350 varieties of teas throughout North America.
The Republic of tea is produced from the readily available organic products. It is usually packed in loose tea bags and comes in different flavors and colors i.e. white tea and red tea. The colors are as a result of red and white wine initially produced by the Republican company before it got into tea production in the year 1992. As an initial wine manufacture, rebranding and advertising have made it gain global accreditation with estimated revenues of around $20 million annually. Its bestsellers include hot apple cider, pumpkin spice black tea, ginger peach and comfort and joy black tea among others
The Republic of Tea has an online store where customers can purchase their teas, herbs, iced teas, tea gift sets, and teaware. They also provide an extensive library of tea information and recipes on their website.
13) Tim Horton’s
- Product Type: Coffee and doughnut shop
- Industry: Food and beverage
- Founded: 1964, Hamilton, Ontario, Canada
- Founders: Tim Horton and Jim Charade
- Headquarters: Oakville, Ontario, Canada
- Current CEO: José Cil
- Revenue: 3.82 billion U.S. dollars (2022)
Tim Hortons is a Canadian multinational coffeehouse and restaurant chain founded by Tim Horton, a professional ice hockey player and entrepreneur. The first Tim Hortons store opened in Hamilton, Ontario, Canada in 1964, and since then, the chain has grown to become Canada’s largest quick-service restaurant chain, with over 5,000 locations in 15 countries as of June 2022. The menu started with only coffee and doughnuts, but it has since expanded to include a variety of baked goods, sandwiches, soups, and other fast-food items. The company’s vision statement is to be the quality leader in everything they do. Tim Hortons is known for its coffee, doughnuts, and connection to Canada’s national identity.
Tim Hortons generated a Net Income of $1,482 million versus $1,253 million in prior year. There are around 5,600 Tim Hortons restaurants as of 2022. The annual sales of Time Horton in 2022 was $7.164 billion.
Tim Hortons is now proud to be Canada’s largest restaurant chain, serving over 5 million cups of coffee every day with 80% of Canadians visiting a Tim Hortons in Canada. The company is popularly known as “Timmies” and has become synonymous with Canadian life, with Prime Minister Stephen Harper even being called the “Tim Hortons Prime Minister” by Maclean’s magazine in 2006.
14) Caribou Coffee
- Product Type: Coffeehouse chain
- Industry: Food and beverage
- Founded: 1992, Minneapolis, Minnesota, United States
- Founders: John Puckett and Michael J. Coles
- Headquarters: Minneapolis, Minnesota, United States
- Current CEO: John Butcher
Caribou Coffee is an American coffee company and coffeehouse chain that was founded in Edina, Minnesota in 1992 by John Puckett. The company has over 600 locations worldwide and is headquartered in Brooklyn Center, Minnesota. Caribou Coffee is committed to responsible sourcing, real ingredients, and the highest standards for taste. They focus on creating a unique experience for customers through a combination of high-quality products, a comfortable and welcoming atmosphere, and a commitment to sustainability.
Caribou Coffee offers a wide variety of traditional and specialty coffee drinks to please nearly any traveler’s taste. They have a strong focus on quality and sustainability, and they are committed to sourcing their coffee beans from farmers who use sustainable farming practices. Caribou Coffee is also known for its cozy and welcoming atmosphere, making it a popular spot for people to relax, work, or catch up with friends. Overall, Caribou Coffee is a great option for anyone looking for high-quality coffee in a comfortable and welcoming environment.
15) Folgers
- Product Type: Ground coffee
- Industry: Food and beverage
- Founded: 1850, San Francisco, California, United States
- Founder: James Athearn Folger
- Headquarters: New Orleans, Louisiana, United States
- Current CEO: Anthony P. Sanfilippo
Folgers Coffee has been a staple in American households since 1850, when William H. Bovee founded the Pioneer Steam Coffee and Spice Mills in San Francisco. Folgers was one of the first companies to produce roasted and ground coffee ready for brewing, which was a game-changer for Californians who previously had to purchase green coffee beans and roast and grind them on their own. Today, Folgers is a subsidiary of the Proctor and Gamble Company and is in direct competition with other coffee brands as well as teas.
Folgers offers a variety of products in the United States, including ground coffee in cans, 100% Colombian (medium roast), Black Silk (dark roast), Brazilian blend (medium roast), and Breakfast blend (mild roast).
16) Lavazza
- Product Type: Coffee
- Industry: Food and beverage
- Founded: 1895, Turin, Italy
- Founder: Luigi Lavazza
- Headquarters: Turin, Italy
- Area served: Over 90 countries
- Current CEO: Antonio Baravalle
- Number of employees: Over 4,000 (2022)
- Revenue: €2.7 billion (2022)
Lavazza is an Italian coffee company that has been in business for over 120 years. Founded by Luigi Lavazza in 1895, the company started as a small greengrocer in Turin, Italy. Today, Lavazza is one of the most successful coffee companies in the world, with a presence in over 90 countries. Lavazza is known for its high-quality coffee blends, which are made from a variety of beans sourced from around the world. The company’s products include ground coffee, whole bean coffee, and coffee pods, as well as espresso machines and other coffee-related accessories.
The Lavazza group generated revenues of €2.7 billion. They made a Net profit of €95 million.
17) Luckin Coffee
- Product Type: Coffeehouse chain
- Industry: Food and beverage
- Founded: 2017, Beijing, China
- Founder: Jenny Qian Zhiya
- Headquarters: Xiamen, China
- Current CEO: Jenny Qian Zhiya
- Revenue: RMB6,201.4 million (US$855.2 million) (Q2, 2023)
- Market capitalization: $8.06B (August 17, 2023)
- Number of employees: 33,604 (2022)
Luckin Coffee is a Chinese coffee company that was founded in 2017. The company was known for its rapid expansion and its use of technology to provide a seamless customer experience. Luckin Coffee was seen as a major competitor to Starbucks in China, and it quickly became one of the largest coffee chains in the country. However, in 2020, Luckin Coffee was involved in a major accounting scandal, which led to the company being delisted from the NASDAQ stock exchange. Despite this setback, Luckin Coffee continues to operate in China, and it remains a popular coffee chain in the country.
Net new store openings in the fourth quarter was 368. Luckin Coffee net income for the quarter ending June 30, 2023 was $0.138B.
18) Maxwell House
- Product Type: Ground coffee
- Industry: Food and beverage
- Founded: 1892, Nashville, Tennessee, United States
- Founder: Joel Owsley Cheek
- Headquarters: Northfield, Illinois, United States
- Current CEO: Chris Rowland
Maxwell House is an American coffee brand that was introduced in 1892 by Joel Owsley Cheek, a wholesale grocer. It was named after the Maxwell House Hotel in Nashville, Tennessee, which was its first major customer. Maxwell House coffee was the highest-selling coffee brand in the United States for nearly 100 years, until the late 1980s. The company used various print campaigns, always featuring the tagline “good to the last drop”.
Maxwell House offers a variety of coffee blends with different flavor profiles. Maxwell House coffee has been owned and produced by several companies, starting with Cheek’s company, Nashville Coffee and Manufacturing Company, then followed by General Foods, and Kraft Foods Inc. Currently, it is manufactured by a like-named division of Kraft Heinz in North America and JDE Peet’s in the rest of the world.
19) Yum China
- Product Type: Quick-service restaurants
- Industry: Food and beverage
- Founded: 2016, Shanghai, China
- Founders: Yum! Brands
- Headquarters: Shanghai, China
- Current CEO: Joey Wat
- Revenue: $2.654B (June 30, 2023)
- Number of employees: 406,000 (2022)
- Market capitalization: $22.46B (August 17, 2023)
Yum China Holdings, Inc. is a Chinese Fortune 500 fast-food restaurant company based in Shanghai, China. It was spun off from Yum! Brands in 2016, becoming an independent, publicly traded company on November 1, 2016. Yum China is a trademark licensee of Yum Brands, paying 3% of total systemwide sales to Yum Brands.
It is worth noting that Yum China is a large restaurant company with over 10,000 stores. It has a workforce of 406,000 employees. Yum China is the largest restaurant chain in China, generating revenue through its KFC, Pizza Hut, and Taco Bell brands.
Yum China had a Net Income increased 138% to $197 million from $83 million in the prior year period, primarily due to the increase in Operating Profit in second quarter of 2023. Yum China Opened 422 net new stores during the quarter; total store count reached 13,602, as of June 30, 2023. Operating Profit increased 216% year over year to $257 million.
20) Dutch Bros
- Product Type: Drive-thru coffee shop
- Industry: Food and beverage
- Founded: 1992, Grants Pass, Oregon, United States
- Founders: Dane Boersma and Travis Boersma
- Headquarters: Grants Pass, Oregon, United States
- Current CEO: Joth Ricci
- Revenue: $250 million (June 30, 2022)
- Number of employees: 22,000 (2022)
- Market capitalization: $1.43B (August 17, 2023)
Dutch Bros. Coffee is a drive-through coffee chain that was founded in 1992 by Dane and Travis Boersma in Grants Pass, Oregon. The company started as a pushcart by the railroad tracks and has since grown to have company-owned and franchise locations primarily located in the western United States, with expansion as far east as Morristown, Tennessee. Dutch Bros. Coffee is known for its high-quality products and attentive customer service, with a focus on creamy drinks, but also offering traditional coffee and tea.
Dutch Bros Annual Net Income as of June 30, 2023 was $3 Million. Dutch Bros Annual Number of Employees in 2022 was 22,000.
Dutch Classics, lattes made with half and half and espresso, are the most popular products of Dutch Bros. Coffee. Other drinks such as teas, smoothies, lemonades, and energy drinks are also popular.
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