The Top 13 Starbucks Competitors in 2024
With over 34,000 stores globally, Starbucks dominates the coffee shop marketplace. However, a variety of international chains, quick service restaurants, and independent coffee houses compete for market share around the world. This in-depth guide examines Starbucks’ 13 leading competitors in 2024 and analyzes their strategies, footprint, menu offerings, and more.
Overview of Starbucks
Founded in 1971 in Seattle, Washington, Starbucks grew from a single shop into the world‘s most ubiquitous coffee retailer with:
- 34,317 stores worldwide across 85 countries (2021)
- $29.1 billion revenue in 2021
- 5.5% same-store sales growth in 2021
- Double-digit revenue growth target for 2022-2023
Starbucks’ meteoric expansion was fueled by its upscale ambiance, premium drinks, and strong brand marketing. However, its dominance has nurtured major competitors aiming to siphon off market share.
| Leading Starbucks Competitors | Estimated Global Locations |
|---|---|
| Dunkin‘ | 12,900+ |
| McCafe (McDonald‘s) | 36,000+ |
| Tim Hortons | 4,700+ |
| Costa Coffee | 4,000+ |
This guide provides an in-depth analysis of 13 key Starbucks competitors: global coffee chains, quick service brands, and independent shops challenging Starbucks around the world.
1. Dunkin‘
With over 12,900 restaurants in 42 countries, Dunkin‘ is Starbucks’ closest competitor, especially in the United States. Founded in 1950 in Quincy, Massachusetts, Dunkin’ established itself as an everyday coffee and donut shop for busy Northeasterners. Today, Dunkin‘ generates over $9 billion in annual sales, with nearly all its U.S. stores operated as franchises.
Dunkin’ competes primarily in the breakfast and affordable coffee category. Its menu focuses on donuts, bagels, muffins, and other baked goods as well as straight-forward coffee drinks. Dunkin’s combination of low prices and speed of service makes it popular for quick morning stops. Annual same-store sales grew 6.2% from 2020 to 2021, showcasing Dunkin‘s ongoing appeal.
Dunkin‘ Donuts generated $9.2 billion in revenue in 2021 vs. Starbucks‘ $29.1 billion. Source
To directly compete with Starbucks, Dunkin’ has expanded its espresso-based drinks menu and specialty offerings like cold foam and nitrogen-infused coffee. However, Dunkin’s simpler, straightforward service model continues to differentiate it from Starbucks’ “third place” positioning.
2. McCafé
McDonald’s launched its McCafé concept in Australia in 1993 and it quickly expanded across the globe alongside McDonald’s restaurants. There are now over 36,000 McCafé locations worldwide, constituting Starbucks’ largest restaurant competitor.
Every McCafé serves a range of espresso drinks like lattes, cappuccinos, and mochas. McDonald‘s leverages its real estate footprint and drive-thru advantage to provide convenient access. McCafés saw tremendous growth in 2021 with global comparable sales up nearly 15%.
McCafe operates over 36,000 locations across North America, Europe, Asia Pacific, and Latin America. Source
McDonald’s also launched a "Coffee Journey" initiative in 2020 to elevate bean sourcing, highlighting blends from Guatemala, Kenya, and Brazil. However, McCafé still competes primarily through speed and convenience rather than specialty coffee quality.
3. Tim Hortons
In Canada, Tim Hortons remains Starbucks’ top competitor with a 54% share of the coffee shop market. Founded in Hamilton, Ontario in 1964, Tim Hortons has over 4,700 restaurants, mostly across Canada and the northeastern United States.
Beyond coffee, Tim Hortons focuses on baked goods like donuts, timbits, bagels, and muffins. Its shops have a casual, no-frills atmosphere welcoming locals for quick stops. Tim Hortons‘ app and loyalty program also drive repeat business through mobile ordering and freebies.
Tim Hortons has maintained a 54% share of the Canadian coffee shop market. Starbucks held just 7% as of 2021. Source
Tim Hortons’ growth recently accelerated in China due to demand for its Canadian novelty. Tims also continues expanding in Latin America, the Middle East, and Southeast Asia to diversify beyond its Canadian stronghold.
4. Costa Coffee
Owned by Coca-Cola, Costa Coffee is the second largest international coffeehouse chain behind Starbucks with over 4,000 stores in 32 countries. Founded in London in 1971, Costa Coffee has a very strong presence in the UK, China, and UAE along with outlets across Europe, Asia, and the Middle East.
Costa Coffee’s menu includes typical espresso-based drinks, teas, blended drinks, and baked goods. With its comfortable café seating and light food options, Costa competes directly with Starbucks as an affordable destination for conversations over quality coffee.
In China specifically, Costa Coffee has seen tremendous growth with over 600 stores opened just since 2018. Costa‘s growth in China and throughout Asia will continue placing pressure on Starbucks‘ dominant position.
5. Café Nero
Established in London in 1997, Café Nero operates over 1,000 coffee houses across 9 European and Middle Eastern countries. Café Nero focuses on traditional Italian espresso beverages along with cold blended drinks, teas, and light snacks.
Café Nero’s upscale European café ambiance mirrors Starbucks, but with even more emphasis on coffee quality. Through its “Coffee vs Gangs” initiative, Café Nero also spotlights its direct sourcing partnerships with growers in hotspot regions like Honduras and Guatemala.
6. Coffee Bean & Tea Leaf
Founded in Los Angeles in 1963, The Coffee Bean & Tea Leaf is the oldest specialty coffee and tea retailer in the United States. It operates over 1,150 locations across 27 countries in the Americas, Asia Pacific, Europe, and the Middle East.
The Coffee Bean & Tea Leaf sets itself apart with innovative drinks like chocolate macchiatos, strawberry matcha tea, and golden eagle iced coffee. However, its core menu also includes typical espresso, cold brew, and tea options to compete directly with Starbucks.
7. Independent Coffee Shops
Independent coffee shops like Blue Bottle, Stumptown, and Intelligentsia are flourishing globally, especially in metropolitan areas. Their focus on premium beans, brewing techniques, and hip café environments provides hyper-local competition for Starbucks.
Though their unit count pales against Starbucks, these indie cafes are cultivating loyal customer bases of specialty coffee devotees. In China specifically, Luckin Coffee and other independent chains have expanded rapidly in first-tier cities, competing heavily with Starbucks.
8. Nestlé
As the world‘s largest food and beverage company, Nestlé competes directly with Starbucks through its massive portfolio of coffee brands like Nescafé, Nespresso, and Blue Bottle.
Nescafé by Nestlé is the world‘s most iconic instant coffee brand, available in grocery aisles globally. Nespresso, meanwhile, is a premium single-serve capsule system for at-home brewing to rival Starbucks‘ packaged coffee.
Nestlé is also expanding its retail footprint with acquired chains like Blue Bottle, Chameleon Cold Brew, and Starbucks competitor Seattle‘s Best Coffee.
9. JAB Holding Company
Germany‘s JAB Holding Company has rapidly assembled an empire of coffee brands to take on Starbucks, including:
Peet’s Coffee: Founded in Berkeley in 1966, Peet‘s has over 250 retail cafés across the U.S. offering premium roasted beans and espresso drinks.
Stumptown Coffee Roasters: Beloved Portland-based coffee roaster with 12 cafés focusing on direct trade beans and craft roasting.
Intelligentsia Coffee: Pioneering specialty roaster with a modest café footprint but massive wholesale bean sales.
Krispy Kreme Doughnuts: Global doughnut chain with over 1,400 locations that competes with Starbucks‘ breakfast business.
Pret A Manger: UK-based fast casual chain with over 500 locations globally, competing on food as well as specialty coffee.
By combining these niche brands, JAB seeks to challenge Starbucks‘ industry dominance.
10. Dunkin‘ Brands
Dunkin’ Brands, owner of Dunkin‘ Donuts and Baskin Robbins, competes directly with Starbucks through its eponymous donut and coffee chain. With over 12,900 restaurants globally, Dunkin‘ offers mainstream coffee drinks and signature donuts for affordable on-the-go breakfast.
Dunkin’s U.S. systemwide sales reached $9 billion in 2019, less than half of Starbucks‘ $21 billion that year in America alone. But through foamy cold brews, nitro coffee, and other specialty beverages alongside aggressive promos, Dunkin’ is vying to take share.
11. McDonald‘s
Beyond its McCafé concept, McDonald‘s competes with Starbucks by selling affordable brewed and specialty coffee drinks at over 38,000 restaurants worldwide. McDonald‘s launched its premium roast coffee lineup in 2006 and a full espresso-based McCafé menu soon followed.
McDonald‘s convenient locations, drive-thrus, and extra value deals on coffee make it a major Starbucks competitor for hurried commuters. According to Technomic data, McDonald‘s actually overtook Starbucks in morning market share in 2021.
12. Coffee Bean & Tea Leaf
With over 1,150 locations globally, Coffee Bean & Tea Leaf is the largest specialty coffee and tea chain in the U.S. Founded in 1963, it helped pioneer today‘s gourmet coffee culture on the West Coast.
Coffee Bean competes with Starbucks by offering innovative proprietary drinks along with trendy food options like rice bowls, smoothies, and toasted pastries. However, its core latte, cold brew, and tea menu still mirrors Starbucks.
13. Burger King
Even Burger King competes for coffee sales through its mainstream BK Café lineup of brewed, iced, and espresso-based coffees. Available at over 18,700 Burger King locations worldwide, BK Café allows the chain to attract coffee drinkers in the morning and during other dayparts.
BK Café has used aggressive discounts like $1 any size coffee to undercut Starbucks’ pricing premium. Burger King also launched a TV campaign in 2021 directly attacking Starbucks as "fancy" to position itself as the people‘s choice for coffee.
Independent Coffee Shops Flourish
Beyond major chains, Starbucks faces increasing competition from local independent coffee shops in many markets. These small cafés promote craft roasting, niche brew methods, and cozy, quirky atmospheres that starkly contrast Starbucks‘ uniformity and corporate feel.
Leading independent chains like Philz, Blue Bottle, Stumptown, and Intelligentsia have built cult followings in cities like San Francisco, Portland, Chicago, and New York by doing coffee their own way. Unique offerings like nitro coffee, slow bar pour overs, and exclusive microlot beans charm serious coffee aficionados away from Starbucks‘ mass appeal approach.
Even in China, over 5,300 independent coffee shops opened from 2014 to 2019, growing 25% per year on average. Chains like Luckin Coffee, Manner Coffee, and Seesaw Coffee are stealing share from Starbucks in China through trendy shop formats focused on freshness and quality.
Starbucks Still Reigns Supreme
Despite intensifying competition from quick service brands, international chains, and indie cafés, Starbucks still thoroughly dominates the global coffeehouse market. With its unparalleled size and brand awareness, Starbucks is positioned to fend off rivals and continue leading industry growth.
However, competitors force Starbucks to constantly evolve through new formats like Reserve bars and delivery-only outlets. They also inspire ongoing menu innovation and push Starbucks to keep craft coffee at its core. For coffee lovers, the flourishing competition provides more choice than ever for customized, quality drinks whether grabbing coffee on the go or lingering over conversation.
