Coffee first became popular in the U.S. after the Boston Tea Party, when the switch was seen as patriotic. And since Starbucks debuted in 1971, the drink is now accessible almost anywhere you go. A recent survey by the National Coffee Association found that 67% of Americans drink coffee daily.

Some local coffee scenes are stronger than others, though. To determine the best among them, WalletHub compared the 100 largest cities across 12 key indicators of coffee lover-friendliness. Our data set ranges from coffee shops, coffee houses and cafés per capita to the average price per pack of coffee to the share of residents with coffee makers at home.

Chip Lupo, WalletHub Analyst

Portland, OR, is the best coffee city, in large part because it has an extremely high number of affordable coffee shops that are rated at least 4.5 stars out of 5. It also has the ninth-most coffee shops per capita that offer free Wi-Fi, which is great for anyone who wants to work while enjoying a cup of java.

People in Portland don’t always go out for coffee, though. Over 24% of the population owns an electric coffee grinder, the ninth-highest percentage in the nation, and nearly 30% of residents own a single-cup or pod-brewing coffee maker.

Overall, households in Portland spend an average of over $170 per year on coffee, the 18th-most in the country.

San Francisco, CA

San Francisco is the second-best city for coffee lovers, and its coffee-crazy households spend an average of over $280 on the beverage each year, the second-most of any city. San Francisco also has the highest percentage of households with an espresso or cappuccino maker, at over 11%, and the second-highest percentage with an electric coffee grinder, at nearly 27%.

In addition, San Francisco has a ton of coffee shops, and it ranks among the top cities for affordable shops that are rated at least 4.5 stars out of 5. Plus, for those who want a sweet treat to pair with their cup of Joe, the Golden Gate city has the eighth-most donut shops per capita.

Seattle, WA

Seattle, the birthplace of Starbucks, is the third-best coffee city. Like the other top cities, it boasts a very high number of coffee shop options, especially ones rated at least 4.5 stars out of 5. Seattle also has the 13th-highest share of coffee shops that offer free Wi-Fi per capita.

One way that Seattle residents and visitors demonstrate their love of java is through their search history, as they search Google for “coffee” more than people in all but two other cities. In addition, Seattle residents spend an average of nearly $240 per year on coffee.

Finally, Seattle has the second-highest percentage of residents with an espresso or cappuccino machine, and the fifth-highest percentage with an electric coffee grinder.

What tips do you have for a person that wishes to enjoy their daily “java” cup while on a budget?

Start by calculating your coffee spending. While the daily cost may seem small, when you calculate it over a year, the total can be quite surprising. For instance, one of my employees was buying two cups of coffee every day at work. After doing the math, we discovered he was spending over $2,000 annually. Brewing your own coffee costs about a tenth of that. The following week, I bought our first office coffee machine, which was a huge cost saver.

Why are some folks willing to spend two or three times more for a comparable cup of coffee?

People often pay more for the convenience and the experience a coffee shop provides. Several other factors play into this decision as well. When customers are uncertain about the quality of a product, they tend to use price as an indicator of quality. There is often a perception that a more expensive coffee must be of higher quality. Coffee shops justify higher prices by emphasizing factors such as the origin of the beans, ethical sourcing, or specialized roasting methods.

Brand loyalty also plays a significant role. For example, my daughter loves stopping at Starbucks so she can show off her Starbucks lemonade. Social factors, like when certain groups decide something is "in," also influence buying decisions—think of the popularity of Stanley cups.

Why is coffee so popular in the U.S.?

Historical factors have played a significant role, but the addictive nature of caffeine is a major contributor to coffee’s enduring popularity.

In the current economic environment, is opening a coffee shop as a first business for young entrepreneurs still a good idea? Or are most markets already oversaturated?

Starting a coffee shop in today’s economic climate comes with both opportunities and challenges. While some markets may be saturated, success is still possible for entrepreneurs who can offer something unique, adapt to consumer trends, and manage costs effectively. Key considerations include having a clear value proposition, conducting thorough market research, and creating a solid financial plan.

It is important to ask yourself: What will make your coffee shop stand out? Do you understand the needs and preferences of your target audience? Are you prepared for the financial aspects, including covering start-up and operating costs for at least six months?

Lastly, consider whether running a coffee shop aligns with your personal goals. If you love coffee but have bigger aspirations, think about how you can combine your passion for coffee with something greater. Businesses like Starbucks and Keurig revolutionized the industry—who is to say you cannot be the next big innovator?

What are the main coffee and tea marketing and industry trends for 2024?

Key trends for 2024 include a focus on sustainable packaging, cold brew and nitro coffee, and health-conscious innovations. However, trends will evolve, so it is crucial to have a system in place that allows you to adapt. Technological changes, such as online ordering, and shifts in consumer experience expectations are just as important. While people may come in for the coffee, they will return for the overall experience.

Christopher Courtney

Ph.D. – Collegiate Associate Professor of Technology Entrepreneurship, Pamplin College of Business, Management – Virginia Tech

Data Sources: Data used to create this report were collected as of August 21, 2024 from the U.S. Census Bureau, Council for Community and Economic Research, U.S. Bureau of Labor Statistics, Numbeo, Google Trends, Yelp, Esri's Updated Demographics, GfK MRI, Caffeine Crawl, Coffee Fest and U.S. Coffee Championships.

This report is reproduced from wallethub.com, the original link for more contents: https://wallethub.com/edu/best-cities-for-coffee-lovers/23739