A little-known coffee chain called 7 Brew is quietly blanketing parts of America where caffeine options are thin — and it’s doing so without a single airport kiosk or mall stand.
Founded in 2017 in Rogers, Arkansas, 7 Brew has grown to more than 700 locations across 38 states, with roughly 340 more in development. The chain operates almost entirely through drive-thrus and walk-up windows, often in towns where Starbucks and Dunkin’ barely have a presence.
Sales jumped from $502 million in 2024 to nearly $1.2 billion last year, according to company figures. That kind of growth comes as budget-conscious consumers pull back on fast food at places like McDonald’s and Burger King, but keep reaching for cheap treats.
A cheap drink in a pricey world
Sharaya Jones, a marketing professor at George Mason University, said coffee works as an “affordable luxury” — a daily indulgence that still feels special without breaking the bank. “Some coffee shops are expensive, but usually it’s under $10 to have this really special moment,” she noted.
Related: Trump China visit yields few deals so far
7 Brew keeps costs low by using small, no-dining spaces. That helps offset smaller profit margins on drinks compared with Starbucks. The chain also doesn’t charge for most customizations: extra flavors, milk alternatives, whipped cream and drizzles all come free.
Customers notice the difference. Charlese Mitchell and Sydney Richardson paid $5 each for their drinks at a Maryland location — half what they expected. “Five dollars is crazy,” Richardson said.
For comparison, a 24-ounce iced blonde vanilla latte at a San Antonio Starbucks runs about $6.55 via the app. A medium iced latte at nearby Dunkin’ was $5.49, while a Dutch Bros charged $4.95. At 7 Brew, a 24-ounce iced blondie — a vanilla and caramel breve — can cost as little as $5.15, and a medium iced latte as low as $4.75, per the company.
Mayra Okechukwu, a Utah influencer, said she now goes to 7 Brew about three times a week. “When I had to pay, I was really surprised. I was like, ‘Oh, that’s way cheaper for such a good amount of coffee,'” she said. A standard medium iced latte at 7 Brew is the same size as Starbucks’ largest iced coffee.
The drive-thru formula
7 Brew’s model borrows heavily from chains like Dutch Bros (founded 1992 as an Oregon pushcart) and Scooter’s Coffee (first Nebraska kiosk in 1998). They sell muffin tops, energy drinks, sodas and smoothies — similar fare. Those competitors are still bigger: Dutch Bros has over 1,000 locations, Scooter’s over 850.
Related: How to Choose the Best CMS for SEO Your Business
Such small-format stands appeal mainly to commuters and families making school runs. They’re faster, too. Average time spent at 7 Brew stands was 8.7 minutes during the third quarter of last year, according to location analytics firm Placer.ai. That compares with 10 minutes at Dutch Bros and 13.8 minutes at Starbucks.
7 Brew’s rapid expansion has been fueled by a growth equity investment from Blackstone in 2024 and a majority stake taken by Franchise Equity Partners in the company’s second largest franchisee, which is set to open more than 200 new stands. Social media virality has also helped.
But franchises come with limits. Nick Setyan, a Mizuho Group analyst, said franchise operations “are not going to be able to implement the changes that are necessary to keep up with trends, customer demands, keep the uniformity of the system.”
The drive-thru challenge to the ‘third space’
Traditional coffeehouses still have the edge as sit-down cafes where people work or socialize. Jones described that “third space” appeal as a major reason people buy coffee. Starbucks, after weaker sales, rolled out a plan last year to emphasize coffeehouse culture. It seems to be working: U.S. comparable store sales rose about 7% during the second quarter of this year.
Related: Economic fears echo the late 1990s
Jones said 7 Brew baristas come to your car and interact, “but there’s just the loss of the experience, the atmosphere.”
Still, customers like Okechukwu appreciate skipping the long Starbucks lines. And in towns with few other options, the coffee chain fills a real gap. Jesslynne Mann, a 23-year-old graduate student and mother in Kentucky, told reporters that aside from expensive local specialty shops and inconsistent Dunkin’, there’s little else. She uses the brand’s straightforward loyalty program — earn a free drink without hassle — and even treats it as a “date night” with her partner, rating orders in a notes app.
“People enjoy being able to build memories around something, and it just breaks up a long stressful day,” she said.
7 Brew still has a long way to go before it rivals the ubiquity of Starbucks. But for undercaffeinated parts of America, a cheap, fast cup of coffee is apparently worth pulling up to a window for.
Leave a Reply