FRANCHISE NEWS-: U.S. Coffee and Beverage Franchise Market In 2026 the U.S. Coffee and beverage franchise market is still getting bigger. This is because people are buying premium coffee and beverage products. They also like to-drink beverages. The coffee and beverage franchise market is growing because new stores are opening and they are coming up with menu items. However the people who run these coffee and beverage franchises have to deal with the U.S. Coffee and beverage franchise market problems. The U.S. Coffee and beverage franchise market problems include paying workers money, higher rent and higher costs, for supplies.
People are still buying things so consumer demand is doing well.. The money that franchise businesses are making is not as good as it used to be. This means that brands have to think about how to work update the way they do things and sell more expensive products that are worth more, to people. They have to focus on these things to stay ahead. Franchise businesses need to make these changes to keep making money.
Market Size Signals Strong Franchise Opportunity
The United States coffee sector is really a place to start a franchise business when it comes to food. People like to buy and sell coffee businesses because they’re so popular. The U.S. Coffee sector is a choice for people who want to own a franchise, in the food business.
Key Market Numbers (2026)
- Total U.S. Coffee Market: Valued at $24.98 billion
- Coffee & Snack Shop Industry Revenue: $75.5 billion
- RTD Coffee Market: $8.31 billion
- Market Projection: Expected to reach $31.05 billion by 2031
People really like RTD coffee and premium beverages. These are becoming very popular for franchise brands. Younger people like RTD coffee and premium beverages. This is a thing, for franchise brands that sell RTD coffee and premium beverages.
Pricing Pressures Challenge Franchise Margins
Coffee prices are not going up and down like they used to. The people who run coffee shops are still having a hard time making a good profit from selling coffee. The cost of running a coffee shop is high. It is hard for the people who own these coffee shops, like franchise operators to make money from selling coffee.
Cost & Pricing Trends
- Average Coffee Price (Restaurant): Around $3.50 per cup
- Prime Costs (COGS + Labor): Typically 50%–55% of sales
- Labor Costs: Key coffee shop payroll averages $23,000+ per month
The prices of beans are going to go down a little bit but the prices that people pay for beans, in stores will still be pretty high. This means that even though it costs a bit less to buy beans the price of beans that you buy at the store will not be going down anytime soon.
The prices of beans and the prices that people pay for beans are not always the same thing and right now the retail prices of beans are staying high. Raw bean prices are important because they affect how much people pay for beans. In this case the retail prices of beans are not going down even though the raw bean prices are going down a little bit.
These things are making many franchise systems change their prices make their menus simpler and spend money on automation. The franchise systems have to do this because of these factors. The factors are really affecting the franchise systems. That is why they are changing their prices and menus and using automation.
People are really into franchise menu trends. That is making them spend more money when they go out to eat. Franchise menu trends are getting a lot of attention. The reason for this is that franchise menu trends are driving ticket sizes at restaurants. When people go to their franchise to eat they are buying more food because of these franchise menu trends. This is good, for the franchise because it means they are making money from each customer. The franchise menu trends are what is making the ticket sizes higher.
So coffee places want to make money. They are doing this by selling coffee drinks. These coffee drinks are a little fancier. Have extra stuff in them that is supposed to be good for you. They are also making drinks that people like in countries like coffee from Japan or Europe. This way the coffee places can charge money for these coffee drinks and make up for other costs. They are really focusing on these kinds of coffee drinks like coffee and functional coffee and coffee from all, around the world.
Top 2026 Beverage Trends for Franchises
- Functional Coffee: Protein, vitamins, adaptogens (strong global growth)
- RTD Beverages: Convenience-driven sales growth
- Cold Foam & Premium Creamers: Fast-growing add-ons
- Plant-Based Milks: Oat, soy, and almond now standard offerings
Major Franchise Brands Lead Innovation
Big companies with locations are changing the way business is done. These large franchise systems have a lot of power. They are really shaping the market. The market is where people buy and sell things and these big franchise systems are making an impact, on it.
Starbucks has the part of the market, in the United States. The company Starbucks is really popular. That is why Starbucks is the leader. Starbucks sells a lot of coffee and other drinks, which helps Starbucks stay on top.
Dunkin’ is trying to beat local brands by being cheap and fast. They want to give people a deal and get their food ready quickly. Dunkin’ is all about being a value and getting people in and, out the door fast.
Big companies, like Nestlé, JDE Peet’s and Keurig Dr Pepper are getting into ready to drink products and teaming up with stores to sell them. They are really working on these ready to drink products and store partnerships.
People really like it when restaurants have menus with things like Dubai Chocolate drinks and Pistachio Cold Brews. They also have protein-based beverages. These new menus are helping restaurants make money from each order. The average order value is going up because of these menus, with Dubai Chocolate drinks and Pistachio Cold Brews and protein-based beverages.
The franchise is getting bigger. It is happening fast in the year 2026. This means the franchise expansion is really speeding up in 2026. The franchise will have places in 2026 because the franchise expansion is going very fast.
Big coffee companies are still growing fast even when they have to deal with high costs. They want to open stores and get bigger so they are moving forward with their plans to expand their coffee shops. Leading coffee franchises, like these are really pushing to have locations.
Key Franchise Expansion Plans
- Starbucks: 150–175 new U.S. locations, many smaller-format stores
- Dutch Bros Coffee: 175 new locations planned
- 7 Brew: Rapid multi-state expansion across the U.S.
People really like the idea of places that you can just drive up to. These smaller drive-thru places are becoming the way that franchises want to grow. They like the format because it is easy to use and people, like it. The drive-thru is what people want and franchises are paying attention to this. Smaller drive-thru places are the future of franchise growth.
Wellness, Sustainability, and Digital Focus Shape Franchise Strategy
Franchise brands are doing something. They are giving importance to certain things. Franchise brands are now focusing on these things because they think they are very important. Franchise brands want to make sure they do a job, with these things.
Franchise brands are trying to make these things work well for them. Franchise brands believe that these things will help them in the run.
- Sustainable sourcing and packaging
- Single-origin and premium beans
- Digital ordering and loyalty apps
- Personalized “home-café” experiences
- Zero-proof and wellness beverages
Climate risks are still a worry for franchise supply chains in the long run. Economic volatility is also a problem that will be around, for a while. These things can really affect franchise supply chains.
Franchise News in Brief
The U.S. Coffee franchise market is still doing well in 2026. This is true even though the costs are higher now. The U.S. Coffee franchise market stays strong in 2026.
Premium, functional, and RTD beverages are key growth drivers.
The cost of labor and the cost of rent are really squeezing the profits of franchise businesses. Franchise margins are getting smaller and smaller because of labor and rent pressures. This is a problem, for franchises because labor and rent are two of their biggest expenses. Labor and rent pressures are making it harder for franchises to make money.
Big companies, like Starbucks, Dutch Bros and 7 Brew are getting bigger fast. They are opening up places all over the place. Starbucks and Dutch Bros and 7 Brew are all growing quickly.
Smaller-format and drive-thru models dominate new franchise openings.
Also Read: Burger King Franchise Investment, Growth Plans, and New Product Launch 2026 Strategy.
