7 Brew Coffee share grows in 2024

In high-growth coffee market, 7 Brew Coffee leading

7 Brew Coffee share of wallet grew as it outperformed incumbents, growing nearly 500% between February 2023 and 2024, 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 are winning 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 more often. Their return rates are higher compared to both Starbucks and Dutch Bros. After 11 quarters following their initial purchase, 31% of 7 Brew Coffee customers were still buying from the brand. This rate is notably higher than Starbucks’ 23% and Dutch Bros.’ 17% in the same timeframe. The data highlights the strong loyalty and engagement 7 Brew has been able to cultivate. Customers are consistently returning, showing sustained interest in the brand. This level of retention positions 7 Brew favorably against larger competitors. It indicates that the brand’s customer base remains highly committed, which is crucial for long-term growth. As customer spending and return rates continue to rise, 7 Brew stands out in a competitive coffee market.

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