7 Brew Coffee leads high-growth coffee market
7 Brew Coffee’s sales grew nearly 500% between February 2023 and 2024, outpacing its high growth coffee market peers, according to Earnest credit card data. Dutch Bros. Coffee grew relatively consistently throughout the year, growing 39%. In contrast, Blank Street Coffee saw growth decelerate towards the end of 2023, ending February 2024 with 14% growth over the prior year.
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7 Brew customers spending more at 7 Brew, less at Starbucks
Although Starbucks continues to dominate the overall coffee market, high-growth coffee companies like Dutch Bros. and 7 Brew have steadily gained share, driven by continued store expansion. Dutch Bros. has expanded to 831 locations across 16 states, while 7 Brew Coffee has grown to 190 locations across 26 states. 7 Brew and Dutch Bros. exclusively operate drive-thru locations, a strategy emulated by Starbucks’ latest expansion initiatives to develop more pickup stores and drive-thru/delivery-only locations.
Earnest’s share of wallet analysis, which isolates spend by a brand’s existing customers across that brand’s competitors, suggests 7 Brew Coffee customers increased their wallet share at 7 Brew Coffee from 6% to 21% in the last year, while their spending share at Starbucks decreased 9%.
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7 Brew customers outperform Starbucks, Dutch Bros. in customer retention
Not only have 7 Brew customers increased their spending at the coffee chain, but they also returned at higher rates compared to both Starbucks and Dutch Bros. 11 quarters after initial purchase, 31% of 7 Brew Coffee customers were still purchasing at the brand, surpassing Starbucks’ 23% and Dutch Bros.’ 17% in the same timeframe.
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