- Drive-thru coffee locations are seeing rapid expansion from fast-growing chains like Dutch Bros and 7 Brew.
- Smaller footprints allow these operators to add hundreds of suburban sites, outpacing larger brands on unit count and speed to market.
- This expansion is reshaping site selection strategy for retail landlords and underscoring new consumer preferences for convenience and customization.
Coffee Chains Prioritize Drive-Thru Growth
Demand for drive-thru coffee locations is hitting new highs, with national chains and upstart brands alike targeting suburban markets for aggressive expansion. Operators like Dutch Bros and 7 Brew are adding hundreds of small-format stores with a heavy emphasis on drive-thru service, angling to capture growing consumer demand for convenience and mobile ordering. These plays are driving up competition for pad sites on high-traffic arteries—especially in communities where supply can accommodate the long stack lines and broader footprints needed for drive-thrus.
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Drive-Thru Proliferation Shifts Site Criteria
The surge in drive-thru expansion marks a shift from traditional coffee shops, which have historically focused on urban walk-in locations. Placer.ai data shows small coffee chains grew market share by 77.6% from 2019 to Q1 2026, while mid-sized operators posted a 149% gain. Chains like Dutch Bros now operate over 1,100 stores as of March 2026, up from 538 at the end of 2021. Newer entrants such as 7 Brew have exploded from 22 locations in 2022 to more than 700 today. These concepts occupy smaller buildings—Dutch Bros at just over 900 SF and 7 Brew at about 650 SF—but require more parking and pad acreage to accommodate high-throughput drive-thru service.
National Retailers Adjust for a Competitive Environment
National stalwarts Starbucks and Dunkin’ are both adjusting their store formats in the face of this competition, but smaller, faster-moving operators are gaining share in the suburbs. According to CBRE, the volume of small, drive-thru transactions is reshaping expected deal flow for both landlords and brokers. Chains can outpace larger counterparts on unit growth due to their streamlined footprints, and are implementing innovations like double drive-thrus and extensive menu customization—7 Brew alone boasts over 20,000 possible beverage combinations. With most new development focused outside dense urban cores, landlords positioned in high-growth suburbs are best poised to benefit from this sustained tenant demand.
Shifting Consumer Preferences Boost Beverage Sales
Operators are not just winning on convenience. Diversified menus, especially colorful cold drinks and energy beverages, have broadened the appeal beyond traditional coffee buyers. This helps chains build loyalty among younger demographics and supports continued unit growth in spite of stiff competition. Retail landlords already facing tighter supply in other quick-service food categories see new drive-thru beverage operators as a key source of leasing velocity—and a bellwether for shifting retail demand.
What’s Next
Watch for continued drive-thru expansion in car-centric suburbs with available pad sites, as well as potential municipal pushback in markets sensitive to traffic congestion from long queue lines. Operators with the agile formats and creative menu offerings will likely continue gaining ground on legacy brands, keeping leasing competition for drive-thru locations hot through 2026 and beyond. As Starbucks and large counterparts pivot toward international growth, expect upstart US chains like Dutch Bros and 7 Brew to seize market share domestically—further changing the landscape for retail developers and investors.
