Starbucks is Losing Its Mojo: Why the Future of Beverages is Brewing Beyond Coffee

 

For decades, Starbucks was the gold standard in coffee culture. They didn’t just sell coffee—they sold identity, community, and ritual according to Steven Johnson Grocerant Guru® at Tacoma, WA based foodservice Solutions®.  But today, cracks are showing, and the headwinds Starbucks faces are no longer just cyclical. They’re structural. Consumers are redefining what a beverage should do, and competitors—from smoothie shops to energy drink makers—are seizing the moment.

Let’s start with one bold example.

Smoothie King Just Hijacked Starbucks’ Loyalty Program

On National Coffee Day, Smoothie King pulled a daring stunt: show your Starbucks Rewards stars and get a free 20oz high-protein coffee smoothie. Yes, they accepted Starbucks’ own loyalty currency to lure away its best customers. Each blend packed 30+ grams of protein, proving that coffee today isn’t just about taste or ritual—it’s about function, fitness, and fueling up.

That wasn’t just a promotion. It was a direct shot at Starbucks’ cultural dominance. Smoothie King is saying: We’ve been doing protein-forward beverages since 1973. Starbucks is just catching up.

And they’re not alone.

Competition Brewing on All Sides

The undercurrent is clear: Starbucks’ grip on beverage leadership is loosening. Here are three more fronts where rivals are gaining ground:

·       Dunkin’s Value Play
Dunkin is unapologetically practical—bundling coffee and breakfast deals at prices that undercut Starbucks. In an inflation-sensitive market, that value-driven positioning is magnetic.

·       Panera’s Unlimited Sip Club
With its all-you-can-drink subscription, Panera has created a daily ritual that locks customers into their ecosystem. Starbucks’ rewards app is powerful, but it feels increasingly like work compared to the simplicity of a monthly pass.

·       Celsius and the Energy Drink Set
Young consumers aren’t pledging allegiance to coffee—they’re reaching for performance drinks, functional hydration, and pre-workout energy. Celsius, Alani Nu, and others are growing double-digits while Starbucks is fighting to hold traffic.

This isn’t just competition—it’s evolution.

Starbucks’ Internal Struggles Compound the Problem

The external threats are tough enough, but Starbucks is also grappling with its own issues:

1.       Labor unrest and unionization battles have tarnished its brand halo as a “progressive employer.”

2.       China, once the growth engine, is sputtering, with uneven consumer recovery and rising local competition.

3.       Loyalty fatigue is real. Starbucks’ app feels bloated with promos that frustrate as much as they delight, especially when competitors are delivering cleaner, sharper value.

Put bluntly: Starbucks risks becoming the Blockbuster Video of beverages if it doesn’t evolve.

The Grocerant Guru®: Four Clues to the Future of Beverages

Industry insider Steven Johnson, the Grocerant Guru®, offers a sharper lens on where the beverage category is heading:

1.       Functionality is non-negotiable. Protein, hydration, gut health, immunity—consumers now expect beverages to do something for them, not just taste good.

2.       Dayparts are dissolving. Coffee is no longer a morning-only habit. Consumers want “anytime” beverages that fuel work, workouts, and even wind-downs.

3.       Subscriptions beat complexity. Loyalty is about habit and ease. Panera proved it. Starbucks risks falling behind if its digital ecosystem feels more like a math problem than a reward.

4.       Cross-category competition is exploding. Starbucks isn’t just competing with Dunkin or Peet’s. Its rivals now sit on grocery shelves—energy drinks, kombucha, sparkling adaptogens, bubble tea. The playing field is bigger, and the rules have changed.

Final Pour

The future of beverages is moving beyond coffee, and Starbucks can’t just double down on pumpkin spice to fix it. The next generation of drinkers wants functionality, affordability, and relevance. Smoothie King, Dunkin, Panera, and even Celsius are carving away at the market Starbucks once owned.

If Starbucks doesn’t adapt, the brand risks becoming a legacy player in a marketplace that no longer revolves around coffee cups—but around lifestyle beverages that fuel the body and fit seamlessly into daily life.

The world’s biggest coffee chain must now answer a bigger question: Is it a coffee company, or a beverage company?

Drive Sales. Boost Profits. Stay a Step Ahead.

The Foodservice Solutions® team is dedicated to helping you grow your top-line sales and bottom-line profits.

Are you looking a customer ahead? We have the strategies to get you there.

Visit GrocerantGuru.com   Contact us: Steve@FoodserviceSolutions.us

Dunkin' Unveils Fresher Faster Customized Urban Service

 

In urban centers around the world consumers are seeking sustainable modes of transportation, ease of navigating traffic, reducing commuting times, so they are increasingly using a bicycle to get around.  Fast food retailers have taken notice for good reason according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Now Dunkin’ guests in the Philippines can now pick up with the company’s first-ever drive-thru lane dedicated to bikes. Whether the Dunkin’ craving hits while riding a traditional bike, moped, or motorcycle, it’s now even easier for the Philippines’ large population of bikers to get their Dunkin’ order and get on their way. Consumers are dynamic not static and brands like Dunkin and McDonalds are adapting new units and packaging to accommodate bikes of all kinds.

Dunkin’s bike-thru lane opened at a Dunkin’ restaurant in Quezon City in January 2021 and has been receiving rave reviews ever since. To place an order, bikers can simply ride up to the bike-thru lane, place their order at the speaker, then pay and pick up their items at the window.

Battle for Share of Stomach

Rini Ernawati, Regional Vice President of Asia Pacific at Dunkin’ stated, “We’re very proud to bring Dunkin’s first bike-thru lane in the world to the Philippines, giving our guests even more access and choice on their terms,” .. “Our licensee, Golden Donuts Inc., has been a pioneer in the industry by providing innovative and relevant experiences to meet our customers’ needs. We’ve received overwhelmingly positive feedback from guests and employees, and we look forward to expanding this exciting offering to even more Dunkin’ Philippines locations soon.

Regular readers of this blog know that we have highlighted McDonalds special packaging for bikes which opened a new sub-sector for packaging manufactures. How are you extending your brand invitation?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Foodservice Workers Worry as Cashierless Checkouts Mushroom

Technology continues to become a foodservice workers job killer but a foodservice operators savior according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®. Now Mastercard has entered the cashierless checkout fray in a big way with several industry leading food retailers with pilots it’s launching at convenience stores and drive-through QSRs including Circle K, Dunkin’ and White Castle.

So, working with Accel Robotics, Mastercard has developed technology enabling consumers to check out without clerk assistance at any type of retail store from a restaurant to a pharmacy. Once again evolving retail foodservice pain-points with solutions that save the operator money but cost employees jobs.

The new Mastercard, Shop Anywhere platform will launch in October at select Circle K locations in the U.S. and Canada, where consumers can pay for gas and make in-store purchases via an app, eliminating the need to wait in line, according to Mastercard.

Even Dunkin’ will test Mastercard’s cashierless checkout solution at an undisclosed store where customers can walk in and pick up beverages and food without any face-to-face interaction. This solution will work for Delaware North, which operates sports venues and casinos, will enable Shop Anywhere for on-site food and beverage sales, and they will be testing it as well.

Once again at some White Castle stores, Mastercard in October is launching a frictionless order-and-pay service for motorists called AI-Powered Drive Through. SoundHound Inc. and Rekor Systems are providing technology for the drive-through service, which leverages vehicle recognition, voice ordering and artificial intelligence, Mastercard said in the release. Is there no end to this No.  If success does leave clues and it does technology will elevate operational efficiencies and chain foodservice operators will adopt, adapt, and re-assess operating metrics.  

Mastercard’s cashierless solution centers on grocerant niche grab-and-go shopping, expanding merchants’ ability to serve customers quickly, including outside of normal opening hours, and clearly reducing labor cost.

This is nothing new as Mastercard has dabbled in cashierless checkout before. In 2017 the Mastercard collaborated with AVA retail on frictionless checkout for WeWork’s Honesty Market, and it’s not the only card network exploring the concept. The foodservice industry is dynamic not static are you evolving fast enough?

Foodservice Solutions® specializes in outsourced business development. We can help you identify, quantify and qualify additional food retail segment opportunities or a new menu product segment and brand and menu integration strategy.  Foodservice Solutions® of Tacoma WA is the global leader in the Grocerant niche visit us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

Profits Help Win In 

A Battle for Share of Stomach

Circle K

Dunkin’s Breakfast Buzz Drives New Electricity

Chain restaurants ability to drive customer relevance, create consumer focused ‘buzz’ is made a lot simpler when they develop a partnership that co-develops a product or brand message according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.  

Breakfast is back and cereal is the renewed consumer touchpoint of relevance according to Nielsen. Thus Dunkin’ brands is an on-going quest to drive new electricity into the Dunkin brand has reached out to Post Consumer Brands to help drive new electricity.

So, get this Post Consumer Brands and Dunkin’ are brewing up two new cereals made with Dunkin’ coffee, set to roll out nationwide beginning in August. The two new Post cereals are Dunkin’ Caramel Macchiato and Mocha Latte.  They were inspired by Dunkin’ fans’ two favorite flavors and mark the first collaboration between Post and Dunkin’. How are you edifying your brand and creating a platform of new electricity?

Driving new electricity into a legacy brand with a partnership is a good move and will accelerate the marketing messaging for all companies involved according to Johnson. How is your company positioning to grow your brand, the top, and bottom line?

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, online ordering, delivery, plant based foods, sampling, toy’s, cereal, developing brands,  grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow? Why?

Post Dunkin’ Caramel Macchiato cereal is brought to life with crunchy cereal pieces and caramel-swirled marshmallows, creating the deliciously indulgent taste of the layered iced coffee beverage. Post Dunkin’ Mocha Latte cereal features a hint of chocolate and latte-swirled marshmallows in honor of its namesake espresso. The new cereals contain very small amounts of caffeine, roughly a 10th of a cup of coffee, so all can indulge in the rich coffee-forward experience.

Josh Jans, Brand Manager of Cereal Partnerships at Post Consumer Brands  stated “Coffee and cereal are the ultimate breakfast go-tos, ranking as the top two most consumed items to help people start their day,”  “Dunkin’ coffee is a daily ritual for Americans, and we’re excited to be partnering with them to indulge their fans’ coffee cravings. Getting the flavor right on our new cereals was a top priority, and we think we’ve nailed the rich, smooth and creamy taste.”

“Brian Gilbert, Vice President of Retail Business Development at Dunkin’ stated “We love delighting customers with surprising new ways to enjoy the great taste of Dunkin’. For our fans who already start their days with Dunkin’, this gives them another way to experience their favorite flavors,” … “The Post Cereals team has done an excellent job of paying homage to the Caramel Macchiato and Mocha Latte with these new cereals. We can’t wait to see how customers enjoy them.”

Coffee remains the beverage of choice in the United States, with nearly 65% of American adults reporting that they drink coffee every day. For the 14th year in a row, Dunkin’ was named the No. 1 brand for customer loyalty in the out-of-home coffee category, and for the 8th straight year, the Dunkin’ brand was also No. 1 in the packaged coffee category.

Consumed in nearly 90% of all U.S. households and popular with people of all ages, cereal is America’s No.1 favorite breakfast food. Today, it’s also increasingly enjoyed as a snack, lunch or dinner meal replacement, or as an ingredient in recipes.

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit GrocerantGuru.com for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Dunkin' Un-Masking Consumer Touchpoints

Success does leave clues and ever since its found 70+ years ago Dunkin has focused on consumer relevant touchpoints. Without a doubt face mask are a consumer relevant touchpoint today and once again Dunkin is expanding its brand value to help consumers obtain a quality branded face mask according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

You all know that Dunkin’ has remained open during the coronavirus pandemic to keep Americans and essential workers running. So, now we are heading back out and or back to work Dunkin’ has you covered with new Dunkin’ face masks.

So, the new masks are available in five Dunkin’ized designs, featuring Dunkin’s signature pink and orange. Masks are available for $10 (plus tax and shipping) with $3 from each mask purchased donated to the Dunkin’ Joy in Childhood Foundation to support health and hunger relief for children in underserved communities.

Yes, the mask are made in the USA, the face masks feature a washable 2-ply poly scuba cloth with a nose pleat for comfortable wear and a filter pocket.

Dunkin’ masks are available for purchase at www.shopdunkin.com beginning today, June 11, 2020.  So have some fun and ware a Dunkin Mask.  Grocerant niche Mix & Match bunding get a mask and a gift card for a friend.  Share a smile!

Are you ready for some fresh ideations? Do your food marketing ideations look more like yesterday than tomorrow? Interested in learning how our Grocerant Guru® can edify your retail food brand while creating a platform for consumer convenient meal participation, differentiation and individualization?  Email us at: Steve@FoodserviceSolutions.us or visit: us on our social media sites by clicking one of the following links: Facebook,  LinkedIn, or Twitter

The Shell and Dunkin Partnership Continues to Evolve

Success does leave clues and one great clue everyone can learn form the Shell & Dunkin partnership is: develop the relationship, build success, and then build on the success to strengthen the relationship expanding the success according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

Did you know that Shell Oil Company, is the largest fuel network in the United States, and Dunkin’ just announced a national expansion of their partnership with the Fuel Rewards program to drive new electricity into the brand and the partnership.

Good brand messaging is key to building long term customer buy-in and relevance according to Johnson. So, think about brand messaging how successfully that Dunkin integrated the “Sip Dunkin’, Save at Shell” partnership.  The name alone was lesson one.  Here is how it works; Shell Fuel Rewards members with Gold Status and DD Perks Rewards Program members to save 10 cents per gallon every time they purchase five beverages at a Dunkin’ location.

Every partnership should edify your brands Price, Value, Service messaging and this does just that. Justin Unger, Director of Strategic Partnerships at Dunkin’ Brands stated "From the coffee in your cup to the gasoline in your car, Dunkin' and Shell and both play a big part in keeping Americans fueled throughout their busy day,"  “We are excited to continue to build the great partnership between our two brands throughout 2020 with the Sip Dunkin’, Save at Shell partnership, and deliver significant new rewards that fit so seamlessly into our on-the-go customers’ daily routines.”

Here is the new electricity; DD Perks members who take advantage of this offer will earn 5 cents per gallon after every fifth beverage purchase, which combined with the 5 cents per gallon in Fuel Rewards savings members receive with their active Gold Status, creates a total savings of 10 cents per gallon.

Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, Online ordering, delivery, plant based foods,  sampling, toy’s, beer, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.

All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow?  

Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit www.FoodserviceSolutions.us for more information or contact: Steve@FoodserviceSolutions.us Remember success does leave clues and we just may have the clue you need to propel your continued success.

Dunkin’ Brands Just wants to Have Fun

Is your brand fun?  Are you extending your brand invitation, growing your customer bases, or rewarding longtime customers with just a bit of fun? Consumer interactive and participatory brand marketing should not always be about your menu however it needs to be about customer touchpoints while being consumer interactive and participatory according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.

So, when Dunkin’ launched its first online pop-up shop, offering a selection of Dunkin’-ized holiday gifts that consumer can’t find anywhere else. The ilk of a holiday sweater, one-piece pajamas and joggers to accessories like scrunchies, a fanny pack and an electric guitar.  Employees, franchisees, customers and non-customer all were invited to have fun. Let’s look and see what they have:

1.       Jammin’: How about a custom Dunkin’ electric guitar for rockin’ around the Christmas tree?

2.       Loungin’: Dunkin’s super soft one-piece pajamas and joggers are the coolest and coziest ways to stay in and sip some Dunkin’ by the fire.

3.       Stylin’: Brew up a fun look for your holiday sweater party with a Dunkin’ crewneck sweater. And, stay warm when out and about with two colorful Dunkin’ scarf and gloves sets.

4.       Peppermint Wrappin’: In honor of the return of Peppermint Mocha flavored coffee, Dunkin’s peppermint scented wrapping paper will spice up every gift sent.

Battle for Share of Stomach

5.      Dunkin’ Wrappin’: This wrapping paper is perfect for wrapping your favorite holiday gifts – Dunkin' style.  Plus, guests can get their hands on it first in-store. Starting today, the first 100 guests to purchase a dozen donuts at participating Dunkin’ restaurants nationwide will receive a sheet of this special Dunkin’ branded wrapping paper.

6.       Lunchin’: Bag the boring and light up the lunchroom with Dunkin’s new metal lunch box.

7.       Scrunchin’: Do your updo with Dunkin’s holiday hair ties.

8.       Repeatin’ Fanny Pack: Dunkin’s stylish fanny pack perfectly complements any Dunkin’ cup.

9.       Sparklin’: Dunkin’s phone case features floating donuts and glitter galore.

10.   Cheersin’: Raise a toast to the holidays and New Year with two sets of Dunkin’ pint glasses.

11.   Ruffin’ It: Don’t forget to wish the dog a happy paw-liday with a Dunkin’ puppin’ bandana.

The Dunkin’ holiday items are only available while supplies last, fans eager for additional Dunkin’ merchandise can expect to see the shop pop back up in 2020. In the meantime, the brand is offering a variety of other holiday gifts at participating Dunkin’ restaurants across the country, including:

Ornaments and Lip Balm: Dunkin’ is offering a new donut ornament and bringing back its popular Elf on the Shelf ornaments, who this year are seen stirring a cup of Hot Chocolate with a peppermint stick, all for the suggested retail price of $9.99. Dunkin’ is also offering peppermint-scented MUNCHKINS donut hole treats lip balm in a two-pack for $5.99.

How are you expanding your brand? How are you consumer engagement efforts working? Is your brand static or dynamic?  If success leaves clues and it does consumer engagement that is interactive and participatory are clues you don’t want to forget any time soon. Brands should have fun!

For international corporate presentations, regional chain presentations, local educational forums, or keynotes contact: Steven Johnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions.  His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. For more information visit www.GrocerantGuru.com , www.FoodserviceSolutions.us or call 1-253-759-7869