Case study · The power of a strong brand

What is the power of a brand that connects with consumers? The results aren’t even close.

No matter the industry, whether it be coffee, legal services, jewelry or retail, there’s a common thread: those who are seen get an unfair market advantage when consumers decide to make a purchase. The U.S. coffee shop market shows how wide that advantage gets.

Starbucks Dunkin’

The market

A big, growing category with thousands of competitors.

Coffee is about as crowded as a local market gets. Every corner has a shop, the product is similar and the price gap is small. That makes it a clean test of what a brand is worth.

37,274branded coffee shop outlets in the United States
$47.5Bestimated value of the branded coffee shop market
4.3%annual sales growth across the category

Source: World Coffee Portal / Allegra Group, “U.S. coffee shop market in numbers,” Project Café USA.

Two brands, two-thirds of the market

Everyone sells coffee. Two names take 66% of the sales.

Starbucks holds 41% of the U.S. coffee shop market and Dunkin’ 25%. The next three national names combined hold 8%. Thousands of independents share what’s left.

Share of the U.S. coffee shop marketStatista, 2022
Branded coffee shop outlets in the U.S.By total number of outlets

Sources: Statista, U.S. coffee shop market share by brand, 2022; World Coffee Portal / Allegra Group, outlets by total number. Market share figures are as reported for 2022 and may have shifted since.

Where the growth goes

The brands people already know take almost all of the new growth.

The report’s most striking finding: Starbucks and Dunkin’ accounted for 80% of new U.S. store openings over the past year.

80%of new U.S. coffee shop openings in the past year came from two brands, Starbucks and Dunkin’.
5,000U.S. consumer surveys behind the World Coffee Portal report, plus more than 100 interviews and consultations with industry leaders.
1 in 10consumers perceive coffee as bad for health, so the category itself is not holding anyone back. Brand is.

Sources: World Coffee Portal report as covered by Daily Coffee News; Allegra consumer study, 2019.

Not a price story

The leaders aren’t winning because they’re cheaper.

Average prices across the major U.S. branded chains are nearly identical. Nobody drives past three coffee shops to save a dime. They drive past them to get the name they know, the cup they recognize and the experience they expect.

That is the advantage of being seen: when the moment to buy arrives, the familiar brand is the default, and the rest start from scratch.

$2.12average price of an espresso across major U.S. branded chains
$2.25average price of a filter coffee
$3.52average price of a latte

Source: World Coffee Portal / Allegra Group, average price across major U.S. branded coffee shop chains nationwide.

What this means for your business

The same thread runs through every industry.

A law firm, a jewelry store, a restaurant and a home-services company all face the same decision moment: the customer picks the name they recognize. Here is how you build that advantage.

  1. Familiarity wins the decision

    People choose what they know. If your name is the one they have seen on TV, heard on the radio and scrolled past on their phone, you are the default when the need arrives.

  2. Consistency compounds

    Starbucks looks and sounds the same on every corner. Your logo, colors, message and tone should be the same on every channel, every month, so each impression builds on the last.

  3. Be seen before the need

    Nobody searches for a coffee brand. They already know it. Awareness built in advance, through TV, streaming, radio, social and outdoor, makes the search, or the AI recommendation, land on you.

  4. A brand is an asset you can grow on

    Two known names took 80% of new openings because the brand did the selling before the doors opened. A recognized local brand makes every new service, location and campaign easier.

We build that visibility for South Florida businesses: brand strategy, then a consistent presence across TV, streaming, radio, social, search and outdoor.

Brand Strategy →

Starbucks and Dunkin’ are trademarks of their respective owners and are shown here for editorial comparison only. Neither company is a client of Sunray Media Consultants. Figures are as reported by the cited sources (Statista, 2022; World Coffee Portal / Allegra Group; Daily Coffee News) and are presented to illustrate the value of brand awareness, not as a guarantee of results.

Be the name they already know

Ready to build an unfair advantage?

Tell us about your business and where customers are deciding today. We’ll show you how a consistent brand and the right media mix put you in front of them first.