- Drive-through chains like Dutch Bros continue to grow as consumers prioritise convenience
- But connection still matters to coffee consumers
- A survey highlights that 94% of consumers say companies that build authentic human connection gain a long-term competitive edge
COFFEE is a complex beverage that has long been associated with both functionality and ritual, productivity and connection, caffeine kick and flavour notes. It follows that, depending on culture, context and economic moment, expectations of both the drink and the spaces that serve it continually oscillate – cycling between convenience and the pursuit of a more meaningful experience.
In a climate of high prices and low trust – retail coffee prices at supermarkets in the United States rose 21% – people are increasingly drinking their coffee at home. And when they do go out, for many it’s a weekend indulgence that they expect to be premium and meaningful.
At the same time, coffee chains and drive-through models remain resilient: chains such as Dutch Bros are experiencing growth and success – the company posted 25% year-over-year revenue growth in the third quarter of 2025 – as consumers prioritise speed and convenience on-the-go.
“While pure automation might risk making coffee feel like a ‘commodity,’ successful brands are balancing speed with personalisation and human touch – for example, AI helping baristas focus on connection rather than repetitive tasks,” says Tracy Allen, CEO of Brewed Behavior Consulting. “Drive-thru’s aren’t replacing cozy third-place cafés – they’re complementing them, especially for on-the-go consumers.”
This combination reflects a broader paradoxical pattern in what customers expect from coffee shops. At one end lie large, impersonal spaces dominated by efficiency: large interiors, self-service counters, and standardised offerings that feel as interchangeable as corporate offices. Such environments prioritise throughput and uniformity – and for a time, they satisfied demand for quick caffeine fixes, predictable experiences and work-friendly environments.
Yet the very features that once boosted convenience – laptop tables, bright lights, a lack of distinct personality – can feel soulless in a world where comfort and connection are craved, in a direct reaction to too much disconnect. We’re seeing the return of “analogue” experiences, chalkboard menus, baristas who remember your drink, and the return of tableside service – all acting as a counterpoint to digital saturation. Reports consistently show high adoption rates for self-service systems, but not necessarily an overwhelming desire for them over human interaction when given a choice.
Emerging consumer behaviours underscore this shift. Starbucks “Back to Starbucks” plan aims to reposition the coffee shop as America’s – or the world’s – favourite third place, the very concept that made it iconic. Arguably a wrong move, given consumers’ apparent current preference for drive-thru. This underscores less of a lack of desire for a third place and connection, and more of dual expectation of either pure convenience or the personal, tailored service closest to a home environment that only independents can offer.
“Chatty Cafes” – a community-driven movement in the UK, created to help tackle the loneliness epidemic – are a clear example of how today’s society desperately need human connection, and how coffee shops are the perfect backdrop for it.
Consolidation of the coffee industry and the increasing acquisition of successful independent specialty coffee shops by multinationals has allowed growth, but left many mourning the quality of product and service they left behind. On a recent SubwayTakes episode, one interviewee argues that venture capital is hollowing out New York City’s restaurant scene, replacing messy, characterful businesses with a growing army of ultra-polished, overly curated food concepts – an observation that resonates with the current proliferation of VC-funded coffee shops.
This dual desire for both convenience and connection – and the alternate swing between the two – isn’t new. In economic booms, when consumers have more disposable income, they often seek richer experiences; in downturns, they retreat to convenience and value.
Now, we face a moment of economic downturn in an AI-saturated world in which people, despite scarcer means, crave scarce, sensory, unpredictable in-person experiences that technology cannot replicate. The pendulum therefore swings back and forth between places that offer more accessible, functional coffee, and spaces that provide human connection and design that targets intimacy over scale.
The intimacy premium
Small, thoughtfully curated cafés are thriving precisely because they offer what chains cannot: personality, ritual and service.
Consider the contrast between a generic large-format outlet like WatchHouse. and a tiny specialty shop such as Nagare Coffee, a minimalist coffee shop in London whose entire design prioritises attentive human interaction. It is a specialty coffee café, but differs from the “third wave” concept in that intimacy and proximity take precedence over product.
Younger consumers – or “post-millenials” – increasingly seek out spaces that are “Instagram-able,” engaging, and community-oriented. Gen Z coffee trends emphasise not just flavour but ambiance and visual appeal, with cafés being places to work, socialise, and create moments worth sharing. At the same time, Gen Z and Gen Alpha – while digital natives – are increasingly disenchanted with technology. Human 8 finds that 73% of Gen Z report feeling digitally exhausted, yet spend about 7.2 hours every day looking at content online.
While Nagare may not yet be their default destination by any stretch, its promise of a quiet, authentic, analogue haven could prove increasingly compelling in the near future.
The irony is that convenience and quality are not mutually exclusive, but they often align with different consumer moods and life stages. Drive-through outlets and streamlined service models answer a present need for speed and minimal friction. But for a segment of the market, these formats cannot satisfy the desire for place-based meaning and human touch.
“The greatest aspects of independent cafés are the things that haven’t been perfectly solved by a board of directors – its ‘mistakes,’” says Steven Sadoff, Consultant at Ground Support Cafe and groundsupport.foundation. “If you’re new to an indie favourite you might not know where to queue or how to order, because there wasn’t enough time or bandwidth for the operators to design a ‘perfect’ experience.”
“A barista might guide you, or perhaps a regular points you in the right direction. All of these interactions are part of why you went to a café in the first place – human connection. Too much space and efficiency, and you miss out on this.”
At Nagare-like venues, service rituals – from greeting to a coffee shop layout and products that optimise experience and connection – become part of the offering. This contrasts starkly with generic spaces that, by design, preclude regulars from forming bonds with baristas or fellow patrons.
“Smaller, independent coffee shops often excel in areas where larger chains – like Starbucks, Dunkin’, or Dutch Bros – prioritise scale, consistency, speed, and efficiency,” says Tracy.
“While big operations dominate convenience, volume, and standardisation – especially in drive-thru’s and mobile ordering – independents shine by leaning into personalisation, genuine connection, and a sense of place. This creates experiences that feel more human and memorable, particularly for people seeking a ‘third place’ beyond home or work.”
In an era where scarcity and mobility dominate consumer behaviour, but AI and algorithms have exhausted us at the same time, a paradox emerges: a desire for both accessible prices and convenience, sporadically balanced by intentional breaks that offer meaningful connection and quality time.
Layers of meaning
Coffee shop culture does not evolve in a straight line. It oscillates between poles of speed and soul, scale and singularity.
In a post-pandemic, digitally exhausted society that is perpetually online, in-person experiences and physical connection are emerging as paramount. Offline experiences have become central to personal fulfilment. While 78% of millennials say they prefer spending on memorable experiences rather than material goods, this shift is no longer confined to the young, extending across age groups and income levels.
More than 4 in 5 consumers say they are more likely to stay loyal to companies that prioritise human customer service over automated or self-service options alone, according to a survey of more than 1,000 consumers released by digital services company Ricoh. Nearly all consumers – 94% – agree companies that actively invest in building authentic human connection with employees and customers alike will have a long-term competitive advantage.
This data suggests that the cycle favouring experiential spaces may endure for some time.
“The cycle or shuffle between speed and meaningful connection is influenced by broader societal shifts, economic pressures, consumer preferences, and external events like the pandemic, which accelerated a swing toward speed before a rebound toward soulful experiences,” says Tracy.
Yet this does not spell the end for convenience-oriented formats. Consumers remain concerned by rising prices and inflation, and the demand for quick, transactional formats remains strong, further strengthened by hybrid work patterns. McKinsey & Company notes that despite ongoing uncertainty, consumers keep spending. The link between confidence and consumption has weakened, with shoppers increasingly trading down in some areas while splurging in others – making behaviour harder to predict. “It’s not that today’s consumers are irrational,” it reads, “it’s that the old frameworks used to decipher their behaviour no longer apply.”
Chains that marry convenience with moments of connection – for instance, cafés that offer mobile ordering but also cosy nooks for lingering – likely stand to benefit from both sides of the cycle.
Observations from other consumer sectors are instructive. In restaurants, for example, the pendulum has swung between casual dining, fast-casual, and quick-service formats as social and economic conditions shifted; coffee is no different. When times are flush, consumers trade up to more immersive experiences; when budgets tighten or schedules press, they revert to streamline, predictable formats.
The additional complexity we have to contend with now is the effect of technology’s pervasiveness on consumers’ mindsets, wellbeing, and expectations.
The fickle nature of coffee shop demand thus reflects broader societal rhythms. Work patterns, real estate trends, transport habits and lifestyle priorities shape whether a large, impersonal space suffices or a tactile, curated venue is worth a premium. Even within cities, different neighbourhoods and demographic pockets may be out of phase with each other: in business districts, speed may win, while in residential or cultural quarters, character still reigns. This is known as spatial and functional fragmentation.
“Speed versus soul is less cycle, and more constant balance,” says Steven. “The bigger and faster large concepts get, the more we see smaller cafés as special and destination–worthy. We’ve all enjoyed seeing Starbucks unwind its order ahead initiatives and refocus on restoring the in–store experience to feel like genuine hospitality. As a huge chain, they’re ironically heavily referencing the small café experience, because they had lost that balance.”
“The same unbalance is true of your local café – if they don’t rely on affordable tech to get orders routed and prepped accurately, or to control their margins, or to make sure the music is always just right. Operators need to be painfully aware of how they maintain this balance in–store and in relation to the industry.”
For operators, the lesson is clear. Success in the coffee business no longer rests solely on beverage quality or cost efficiency. It rests on reading – and responding to – shifts in what consumers value most at a given moment. The demand for experience is not linear; it is rhythmic, shaped by context, culture and the caprices of taste.
In the long run, both convenience-first and experience-rich models will coexist, each flourishing in cycles or layers of demand and preference. Understanding those will be the most important strategy of all.
Coffee Intelligence
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