How Does Consumer Foot Traffic to Starbucks Compare to its Competitors?

Get data for any location

Start your search

The pandemic’s economic disruptions are still in effect as the cost of food continues to skyrocket. As popular food and beverage destinations inflate menu prices in response, consumers are either adapting to the new prices or choosing more affordable brands. Specialty coffee—often considered an affordable luxury in the food and beverage industry—has not been immune to these disruptions. So, has consumer interest shifted away from these pricey pick-me-ups? Unacast analyzed foot traffic to three top specialty coffee chains to determine the effect inflation could be having on foot traffic and to better understand current consumer spending habits.

Foot Traffic to Starbucks and Competitors

We analyzed foot traffic to Starbucks, along with Peet’s Coffee and Dunkin’ Donuts, from Q4 2021 to Q4 2022. Overall, the three followed different foot traffic patterns with slight similarities.

starbucks consumer foot traffic 2023

In Q1 2022, for example, all three companies experienced dramatic decreases in foot traffic compared to Q4 2021. After that, foot traffic to Peet’s Coffee skyrocketed before dipping back down, ending Q4 2022 with a -5% change year-over-year. After experiencing a steady decline in foot traffic in Q1, Q2, and Q3, Dunkin’ Donuts saw its biggest increase in foot traffic during Q4 2022, yet still ended the quarter with a -1% year-over-year change. Foot traffic to Starbucks, the market leader in specialty coffee, decreased the most. Starbucks ended Q4 2022 with a -16% year-over-year change in foot traffic.

During Q3 2022, Starbucks and Peet’s Coffee both experienced increases in foot traffic while Dunkin’ Donuts saw a decrease. Other than this and the initial declines seen by each brand in Q1, the three coffee chains seem to be following unique patterns in foot traffic, with Starbucks having the most subtle shifts in foot traffic after Q1. Peet’s Coffee and Dunkin’ Donuts both experienced relatively dramatic ups and downs in foot traffic over the last year. So, is the “lipstick effect” still in play, and are consumers still prioritizing coffee?

Are Starbucks Customers Evolving?

Consumers are still prioritizing their daily coffee, however, inflation may be creating a shift in who prioritizes which brand’s coffee. As the cost of food increases, it is likely that many Americans are making coffee at home to save time and money. On the other hand, there are many Americans still spending hundreds of dollars a year at Starbucks and other coffee destinations, and they may be spending more than usual.

In 2022, the average customer spend per visit at Starbucks increased. This means that people began to spend more, accelerating demand. Consumers may be treating Starbucks as a one-stop-shop for both coffee and food more often, purchasing more food items and increasing average spend. Groups may also be purchasing more Starbucks together to reduce delivery fees or other added costs. Whatever the case, Starbucks had a record-breaking quarter last year in spite of its lowered foot traffic, but will this trend continue in its latest quarter?

Starbucks is currently the most expensive specialty coffee chain in the market, so cost-conscious Starbucks customers could be switching to competing brands like Dunkin’ Donuts, explaining Dunkin’s recent boost in foot traffic. As inflation increases, consumer interest favors coffee, and Starbucks grows, the company is likely to attract more affluent consumers who have the means to spend more. This may be why Starbucks continues to lead the specialty coffee market in spite of its menu prices.

Ready to Get Started?

Book a meeting with a foot traffic data expert now.

Schedule a Meeting

Starbucks: Offsetting Changes in Foot Traffic

Despite inflation and shifts in consumer foot traffic, Starbucks is the largest coffee chain in the world, boasting the most store locations and sales of the three companies we analyzed. Because of this, Starbucks has become the default coffee destination for most Americans. As many choose Starbucks over other coffee choices, this brand affinity could also be growing among groups: families, friend groups, workplaces, etc. Groups may be ordering for delivery more often as well, having Starbucks during meetings, events, or other gatherings. As Starbucks and third-party delivery services’ revenues increase, it could be that consumers are preferring to get their coffee delivered and this may be helping Starbucks offset its current decline in in-store foot traffic.

Starbucks beverages remain the company’s most popular product, but the rise in interest for other products is likely contributing to the increase in average customer spend per visit. Along with food options, Starbucks’ product line includes gift cards, mugs, and tumblers, among other goods. As more consumers become stronger coffee connoisseurs, Starbucks customers are likely purchasing coffee-drinking accessories while on their coffee run.

Based on recent foot traffic to Starbucks locations and company sales, the average Starbucks customer is likely spending more and ordering more, regardless of whether they make in-person visits or not. It will be interesting to see how foot traffic to Starbucks locations changes throughout 2023, and if competitors continue attracting more in-person visits.

To learn how to use foot traffic data in your business, book a meeting with us today.

Frequently Asked Questions

Discover how analyzing real-world movement patterns can reveal valuable trends in customer behavior, optimize business operations, and enhance strategic decision-making.

What is site selection and why is it important?

Site selection is the strategic process by which businesses identify, evaluate, and choose optimal locations for their operations. This process is paramount as the location of a business directly influences factors such as accessibility, visibility, profitability, and market longevity. For retailers, the right site can mean higher customer footfall and increased sales. In real estate, a well-selected site can promise lucrative returns on investment and tenant stability. Financial service firms leverage site selection to position their branches or ATMs in high-demand areas. Essentially, site selection plays a pivotal role in ensuring the success and growth of a business by aligning its physical presence with market opportunities and demands.

How does location intelligence enhance site selection?

Location intelligence refers to the harnessing of geospatial data to derive actionable insights, which can significantly enhance the site selection process. By analyzing data like consumer demographics, foot traffic patterns, competitor locations, trade area data, and more, businesses can make more informed decisions about where to establish or expand their operations. Location intelligence allows for a deeper understanding of market dynamics, revealing hidden opportunities or potential pitfalls. For instance, retailers can identify gaps in the market, real estate professionals can forecast property value trends, and financial service providers can assess areas with high customer demand. Advanced tools, like those offered by Unacast, further refine these insights by leveraging AI and machine learning, enabling more precise and timely decision-making.

What challenges do businesses face in the site selection process?

Unacast provides invaluable support to businesses during the site selection process through its advanced location data and analytics software, all powered and refined by Artificial Intelligence and Machine Learning technologies. The company offers a suite of products designed to deliver accurate, actionable, and comprehensive location intelligence. This data proves crucial for businesses looking to understand consumer behavior, analyze traffic patterns, evaluate competitor locations, and much more. With Unacast’s robust tools, businesses in retail, real estate, and financial services can derive insightful information necessary for making strategic, informed site selection decisions. The platform not only provides reliable data but also ensures it is readily actionable for businesses, whether they are looking to open a new store, invest in property, or expand their financial services to new locations.

What types of location data are crucial for informed site selection?

Demographic data offers insights into the age, income, and lifestyle of people in a particular area, helping businesses understand their potential customer base. Foot traffic data provides information on the number of people visiting a location, which is crucial for retailers to estimate the store's potential popularity and for real estate professionals to assess an area's vibrancy and demand. Geographic Information System (GIS) data helps in visualizing and analyzing geographical details, supporting companies in identifying accessible and strategically located sites. Understanding the proximity to competitors, accessibility, and the socio-economic profile of the surrounding areas is also vital. Unacast’s platform aggregates and analyzes these various data types, providing a holistic view that significantly empowers businesses in their site selection endeavors.

Resources

Sort
No items found.

Book a Meeting

Meet with us and put Unacast’s data to the test.
bird's eye view of the city