How Coffee Chains Are Positioning Themselves for 2026

Coffee chains are navigating 2026 amid rising commodity costs, on-again, off-again tariffs, volatile supply, and evolving consumer expectations. Recently Starbuck’s CEO, Brian Niccol spoke about his new approach for the brand. Other coffee chains are each adapting in distinct ways that signal where the broader industry may be heading.

Starbucks

• Under CEO Brian Niccol, Starbucks is refocusing on hospitality and the in-store experience, pushing back against full automation and emphasizing human-made beverages. Niccol has argued that removing people from the process would strip the brand of its “soul”¹.
• The company is investing heavily in store remodels and operations, including significant labor enhancements, to reinforce its coffeehouse identity.
• More than half of all transactions still involve an in-store touchpoint, which positions Starbucks to maintain premium pricing even during cost inflation.

Dunkin’

• Dunkin’ continues to lean into a convenience-driven, value-oriented model supported by a strong digital loyalty ecosystem².
• Menu flexibility, including flavored iced beverages, reduced-sugar options, and seasonal items, keeps the brand relevant to younger, on-the-go consumers.
• As economic uncertainty pushes some customers to trade down from premium chains, Dunkin’ is positioned as the accessible, everyday alternative.

The Coffee Bean & Tea Leaf

• Rising arabica prices and supply instability are pressuring mid-sized chains, with 2025 bean prices hitting historic highs³. Coffee Bean faces difficult sourcing and margin decisions.
• The brand’s path forward likely involves clarifying its identity: either doubling down on specialty-quality differentiation or offering more value-friendly items without sacrificing quality.
• Sustainability and transparent sourcing remain critical for retaining specialty-oriented customers.

Tim Hortons

• Tim Hortons continues to expand via high-traffic formats, drive-thru growth, and beverage-led menu innovation.
• The chain increasingly blends coffee shop and QSR strategies, relying on flavored cold beverages, seasonal drinks, and value combos to drive volume.
• As it grows internationally, particularly in the U.S. and China, Tim Hortons is adopting a hybrid positioning that emphasizes convenience at scale.

Differentiators and Outlook

Now that tariff pressures on coffee have eased, the outlook for next year will be influenced by growing conditions, fluctuations in global coffee prices and increasing consumer demand for cold and customizable beverages.

Consumers expect a seamless digital experience, fast fulfillment, and menu diversity, yet interest in sustainability and ethical sourcing continues to rise. Clear brand identity and operational efficiency have become the primary levers determining who can weather cost pressures while maintaining customer loyalty.

Looking ahead, the tension between convenience and experience will continue to define competition. Chains capable of stabilizing sourcing costs, improving throughput, and reinforcing a coherent brand story will be best positioned to navigate the next year.

As highlighted by Brian Niccol, selective automation may help improve consistency and labor efficiency, but brands that successfully integrate technology without losing their human connection could hold an advantage.

Independent Shops

For independent coffee shops, the strategic implications are nuanced. While they cannot compete with national chains on price, speed, or loyalty infrastructure, independents can differentiate through hyper-local identity, curated offerings, and personalized service. There is no single prescriptive roadmap, but the market suggests independents who strengthen their community role, emphasize authenticity, and maintain product uniqueness may stay resilient even as chains intensify competition in both value and premium segments.

1. Restaurant Dive

2. Placer.ai

3. Intelligence Coffee