Specialty coffee is growing, but cafes are under more pressure to make the numbers work
Coffee remains the beverage consumed by more American adults each day, surpassing even tap or bottled water. And for the first time, more people in the US say they drink specialty coffee daily than traditional coffee. It is a meaningful shift, because it says a lot about changing tastes and habits. But it only tells part of the story.
Running alongside that demand growth is a more complicated reality: in several markets, specialty coffee continues to draw customers, yet operating a cafe remains a difficult business. Consumption is rising, while the economics of many independent shops are still under strain.
Growth is not the same everywhere
In the US, espresso-based drinks such as lattes and cappuccinos have reached record consumption levels. Cold coffee also keeps gaining ground, especially in warmer months, while mobile-app ordering is rising sharply. Taken together, those signals point to a drinking culture increasingly shaped by convenience, personalisation and mobility.
In the UK, meanwhile, the independent coffee shop sector continues to grow, with outlet numbers and aggregate sales rising according to World Coffee Portal, a specialist observer of the British market. But the picture is not entirely straightforward: industry reporting still describes the segment as under pressure, with costs rising faster than revenues and customers seeking quality without always accepting higher prices.
Anyone working behind the counter will recognise the dynamic. Specialty coffee can bring in footfall and loyalty, but that alone does not guarantee healthy margins.
From product to operations
For years, opening a specialty coffee shop mostly meant believing deeply in the product. Third-wave coffee built its identity on craft, supply-chain transparency and quality in the cup. It was a powerful engine that gave the sector energy and credibility. But in many cases it also left the business side somewhat underdeveloped: strong technical expertise, less familiarity with pricing, cash flow and cost control.
That imbalance matters more now. Staff costs have climbed in several Western markets, green coffee prices have been volatile and rents in busy urban areas remain high. For small independent operators, the result is often a very narrow margin for error. Even with a loyal customer base, failing to keep a close eye on pricing and outgoings can quickly become a problem.
This is not a brand-new issue, but it is one the sector seems to be confronting more openly. That is where initiatives aimed at bringing research and consulting tools closer to specialty coffee are starting to find a place.
Understanding the customer better
One example is Furthers & Betters, a new research and consulting outfit founded by Cheryl Hung, a coffee researcher with long experience in the field, and Brian Gaffney, a strategy consultant with a background spanning corporate and specialty settings. Their premise is simple: specialty coffee has developed an exceptionally strong product culture, but it has paid less systematic attention to the people who actually buy the coffee.
The project is aimed primarily at North America and is designed to make the kind of consumer intelligence that larger companies often handle through dedicated teams more accessible to independent roasters, cafes and retailers. Market research is hardly new. What is changing is the attempt to make it genuinely usable for smaller specialty operators, which is a sign of a sector becoming more commercially mature.
Understanding who buys, in which setting, with what expectations and for what reasons can improve decisions about menus, pricing, consumption occasions and communication. That is where specialty coffee appears to be entering a new phase: having a great product is still essential, but it is no longer enough on its own to build a business that lasts.
Demand is growing and quality still matters. But in the markets now most closely watched, the next step seems clear: specialty coffee will increasingly depend on the ability to combine product expertise with stronger business intelligence.
