By Auzinea Bacon, CNN
(CNN) — A new coffee chain may be headed to a town near you, and it’s not Starbucks or Dunkin’.
Many Americans likely haven’t heard of 7 Brew, which has only been around since 2017 when it opened its first location in Rogers, Arkansas. The chain has since grown to over 700 locations in 38 states, with about 340 more on the way, but can’t be found in airports, indoor shopping malls or busy street corners in major US cities. Instead, it operates through drive-thrus and walk-up windows in parts of the country with little-to-no coffee competition.
The growth of 7 Brew and other rapidly expanding beverage chains, including competitors like Dutch Bros and soda-focused Swig, shows that Americans are perhaps unwilling to give up quick treats during hard times.
Budget-conscious Americans have balked at rising fast food prices in recent years, leading to pullback at businesses like McDonald’s and Burger King. Meanwhile, 7 Brew has performed well in this economy: Sales jumped from $502 million in 2024 to nearly $1.2 billion last year.
“Coffee is perfectly an affordable luxury, because it offers that daily indulgence,” said Sharaya Jones, a marketing professor at George Mason University. “Some coffee shops are expensive, but usually it’s under $10 to have this really special moment.”
Pricing and menu variety
7 Brew’s small non-dining spaces help limit operating costs, making up for smaller profit margins on drinks compared to chains like Starbucks.
Jones notes that coffee, particularly for younger consumers, is “a category where consumers are increasingly price-sensitive… being perceived as more affordable than Starbucks, or other local coffee shops, can help drive repeat visits and build loyalty quickly.”
As 7 Brew expanded, it has also broadened its customizable drinks — it started out with seven drinks, hence the name 7 Brew. It now has more than 20,000 drink combinations. And 7 Brew doesn’t charge for most customizations, such as extra flavors, milk alternatives, whipped cream and drizzles.
When Charlese Mitchell ordered a blondie drink with caramel and funnel cake and her friend Sydney Richardson bought a coconut, strawberry and cupcake-flavored soda at a 7 Brew in Abingdon, Maryland, in April, the pair were taken aback. They paid $5 for each of their drinks — half what they expected.
“Five dollars is crazy,” said Richardson.
7 Brew’s loyalty program may also be appealing due to how straightforward it is to earn a free drink, according to Robert Byrne, senior director of consumer research at food industry research firm Technomic. That’s great for Americans, who Byrne says want to spend at restaurants whenever they have extra cash.
“We need those treats, those little miniature food service serotonin hits,” he said.
The chain also lures customers with free t-shirts and drinks at new locations, limited-time giveaways and discounts for first responders.
At a Starbucks near San Antonio, a 24-ounce iced blonde vanilla latte costs about $6.55 when ordering through the app. A nearby Dunkin’ sold a medium ic