The 25 Best Coffee Franchises of 2022 (Updated Rankings)

This annual list of the best coffee franchises was revised and updated on January 2, 2022.

Coffee is huge business. 64% of adult Americans drink coffee every day, and with each one consuming an average of more than three cups, they get through 400 million cups of coffee every day, or 146 billion cups per year.

The country’s 24,000 coffee shops each sell an average of 230 cups per day, whether to people on the go looking for a caffeine boost or those who want somewhere to sit and relax with a drink. These shops had an average 7% growth rate in the years before the pandemic, making them one of the fastest growing segments in the restaurant industry and a good bet for those looking for a steady business.

With many people heading out to get their coffee, the US coffee shop market was worth $47.5 billion in 2019, 3.3% higher than the previous year. The number of coffeehouses also grew, from 35,600 to 37,300. Franchises benefited from this expansion, with Dunkin’ Brands Group, the largest franchisor, adding 1,500 outlets to its network over five years. Prior to the pandemic, the franchised coffee outlet industry had seen steady growth since 2012, reaching over $11.5 billion in revenue in 2019.

As a non-essential service that involves people leaving the house, coffee shops were hit hard by COVID-19. While many consumers turned to takeaout as a replacement for restaurant food, for coffee, home brewing filled a lot of the gap. Franchised revenues of over $11.5 billion in 2019 fell by 24.1% to $8.8 billion in 2020. 7.3% of coffee and tea shops were expected to close over the course of the year, as the coffee industry declined faster than the overall economy.

Despite its challenges, the industry persevered. Takeout, and especially drive thru, made it easy for coffee drinkers to keep using franchise outlets, and some other outlets added curbside pickup to provide coffee without customers needing to enter a store. Some outlets reopened by instituting safety policies, such as physical distancing between tables, requiring staff and customers to wear masks, hand washing, encouraging electronic payments, and regularly sanitizing high-touch surfaces.

Even with vaccines now in place and the economy recovering, coffee shops are having a tough time. They are very susceptible to the impact of an economic downturn, as takeout coffee is a luxury many people give up when money is tight. COVID-19 is still a significant presence in the US and economic recovery takes time, two factors that together are putting pressure on coffee shops. Revenues are expected to be only $9.1 billion in 2021, 2.8% up on 2020 but billions of dollars behind where the industry was two years ago.

The slow work of rebuilding may provide an opportunity for franchised coffee chains. Their size and resilience has let big brands survive while other businesses go under. Where independent coffee shops have closed, franchises may be able to step in and fill a gap as the market recovers. Big business marketing budgets and greater high street presence mean that branded chain stores earn significantly higher revenues than independent coffee shops, and so will be in a better position to take risks and seize the lost market share as it returns. Dunkin’s CEO and president has predicted that this may provide opportunities for franchises.

One of the most striking things about any list of coffee franchises is an absence from the list: Starbucks. America’s most famous coffee chain is not a franchise in the US, though it does partner with foreign companies for its international locations. All of its 14,000+ US locations are owned by the company.

Fortunately, there are plenty of other options to choose from, and the list is growing. Caribou Coffee has recently announced that it will franchise in the US for the first time in its three decade history, as the company looks for ways to expand its footprint, and other franchises are also aiming to grow into a recovering economy.

High competition and low barriers to entry make coffee shops a cutthroat market, one with great potential but where franchisees have to be constantly aware of local conditions and shifts in the market. Competition is fierce, but there’s always a customer base out there, and America’s addiction to coffee shows no sign of waning. The coffee industry is huge, as shown by a recent coffee chain IPO that turned its chairman and founder into a billionaire off the back of 470 shops.

It’s not just competition that can make running a coffee shop challenging. These stores rely on low paid workers to retain their profit margins, but the pandemic is shifting the balance of labor relations. Many people have decided not to return to jobs that weren’t rewarding, didn’t pay enough, and didn’t provide financial security during the pandemic. Restaurant workers are now quitting in record numbers. They’re looking for better pay and conditions, and because companies need the workers to rebuild, there’s more competition for labor, pushing up wages.

Restaurant workers’ stronger position is reflected in small but growing moves toward unionization among coffee workers, which are both made possible by their stronger bargaining position and will make that position even stronger. Over the next few years, coffee shop owners are going to face a changing balance between what they need to pay to retain good workers, what customers are willing to pay for their coffee, and keeping profits up.

In the current retail environment, providing coffee is about more than just a cup of joe. Modern outlets provide a variety of different coffees, from cold brew and iced versions to flavored cappuccinos and coffee brewed with artisan beans. Specialty coffee drinkers particularly missed coffee outlets during the pandemic, and catering to their tastes will help with recovery and growth. The menu goes beyond coffee, to include other drinks, cakes and sandwiches, drawing in lunchtime business or people who want a snack with their brew.

The sourcing of beans is also increasingly important, as coffee connoisseurs hunt for a more refined taste, while ethical shoppers seek out coffee that is environmentally friendly and treats its producers well. Plant-based milks let you cater to the lactose intolerant, the environmentally conscious, and those concerned about their weight, and are no longer seen as outlandish choices – options such as oat milk have seen their consumption grow by hundreds of percent in some markets in recent years.

Novelty is an important factor for coffee shops to attract customers. That can be novelty drinks, such as the spiced autumnal flavors and Christmas blends, though these can eventually turn into routine drinks and even a source of running jokes, as has happened with pumpkin spice, providing less of a novelty attractor and more of an expectation that needs to be met. Novel venues and store designs can also help to put stores in unexpected locations or draw the eye of consumers, like the Wake Oasis Coffee modular box shop.

A coffee outlet isn’t just a source of caffeine, it’s about providing an experience, something that is becoming important again in a post-COVID context. The ambience of a coffee shop, from the background music to the padded sofas to the friendly and welcoming staff, encourage customers to come back again and again. It’s something that many customers are looking forward to as the world recovers, and that can make a coffee shop a real pleasure to run. These franchise chains will be there to welcome both returning customers and brand new store managers.

The Top Coffee Franchises of 2022

1. Dunkin’

Dunkin’ (yes, it has now dropped “donuts” from its name to reflect its increasing emphasis on coffee and sandwiches) is by far the world champion of coffee franchising, and their motto that America Runs on Dunkin’ appears to be true. The chain’s parent company, Dunkin’ Brands, also owns the Baskin-Robbins brand of ice cream shops.

Dunkin’ dates back to the mid-1940s when William Rosenberg opened a coffee and donut shop called Open Kettle, then changed the name to Dunkin’ Donuts in 1950. The brand is in a major “refresh” effort that’s making a big bet on additions like espresso machines and cold-brew coffee beverages on tap.

Founded in 1948 and franchising since 1955, the number of locations had been marching steadily up for the past decade up through 2020, but has since declined to the current total of 12,800 (down from the previously reported total of 13,027), of which none are company-owned and 3,607 are located outside the US in 32 different countries.

2. Tim Hortons

Tim Hortons is a full-blown quick-service Canadian restaurant chain, but is best known for its coffee and donuts. It recently rolled out meat imitation products from Beyond Meat, but has already pulled the products from most locations, though it says it may try again at some point.

Started by Canadian ice hockey legend Tim Horton back in the 1960s, the chain has also gained attention with its annual Smile Cookie campaign in which the full $1 from the sale of each cookie is donated to local charities, hospitals, and community programs.

According to the company’s annual report, at the end of 2020 there were 4,949 locations (up from the previously reported total of 4,932), of which only four are company-owned.

3. The Coffee Bean and Tea Leaf

The Coffee Bean and Tea Leaf puts a lot of effort into sourcing its coffee and tea in socially-conscious ways, building direct relationships with farmers and growers. Its motto of “impacting lives from seed to cup” includes the company’s Caring Cup initiative supporting local schoolchildren in the US, company employee development, and improving the communities and lives of the people who grow the coffee and tea. The chain was recently acquired by Jollibee Foods Corp., the Philippines’ biggest restaurant company, for $350 million.

Founded by Herb Hyman in the Brentwood neighborhood of Los Angeles, California in 1963, the company website currently claims more than 1,000 locations worldwide (down from its previous claim of more than 1,200 locations), with US locations in 10 states and the District of Columbia, and international locations in 27 other countries. Only four locations are company-owned.

4. Gloria Jean’s Coffees

Gloria Jean’s Coffees presents a menu featuring a wide array of both hot and cold gourmet coffee beverages along with retailing a selection of its ground coffees through a subscription service emphasizing flavored coffees. The company sources all of its coffees directly from locations across the globe, and handles all roasting itself in its Southern California headquarters. In 2014, the chain was purchased by Australian company Retail Food Group, which began an aggressive push for international growth.

Founded by Gloria Jean Kvetko in Chicago, Illinois in 1979 and franchising since 1986, the last known reported number of locations was 859 in 2019, none of which were company-owned and 800 of which were located outside the US.

5. Scooter’s Coffee

Scooter’s Coffee is a drive-thru coffeehouse chain committed to high-quality coffee drinks and customer-focused speedy service as captured in the company motto: Amazing People, Amazing Drinks…Amazingly Fast! Each and every coffee drink can be served up hot, iced, or blended, and the menu also includes tea and smoothies along with a selection of pastries, sandwiches, and burritos.

Founded by Don and Linda Eckles in Bellevue, Nebraska in 1998 and franchising since 2001, the number of locations has more than tripled in the past decade from 100 in 2012 to the current total of 341 (up from the previously reported total of 279), of which 20 are company-owned and all are located in the US.

6. Biggby Coffee

Biggby Coffee is making waves with a new mini-location model for franchisees called B Cubed. The drive-thru/walk-up units are modular, taking up only 350 square feet, and can be installed in just 48 hours.

The chain has also received media attention for its co-CEO Mike McFall, who started out as a barista and worked his way up through the ranks. He drinks as many as 14 espressos on a daily basis. He dreams of one day owning the Detroit Red Wings. And he wants the chain to be the first coffee shop to operate in space – maybe on the moon.

In addition to coffee beverages, the menu includes bagels, bagel sandwiches, muffins, Kind bars, cookies, donut holes, and yogurt parfait.

Founded by Bob Fish and Mary Roszel in East Lansing, Michigan in 1994 and franchising since 1999, the number of locations has expanded over the past decade from 120 in 2011 to the current total of 262 (up from the previously reported total of 246), of which none are company-owned and all are located in the US.

7. Cafe2u

Cafe2u might be the perfect choice for people who want to get involved in a coffee franchise at a lower initial investment. The Australia-based mobile coffee shop concept uses vans equipped with coffee-making equipment to serve up all manner of coffee drinks anywhere and everywhere. The first prototype of its espresso and coffee van was launched in Sydney, Australia back in 2000.

The company website of the Australian franchisor claims the number of locations is more than 240 vans worldwide, including Australia, New Zealand, the UK, and South Africa. There used to be at least one location in the US, but it appears all are now outside the US.

8. Xpresso Delight

Xpresso Delight brings its coffee to customers’ workplaces through its automated gourmet espresso coffee systems. The chain aims squarely at high-end corporate customers with easy-to-use coffeemakers manufactured in both Switzerland and Italy to produce high-quality cappuccinos, lattes, and espresso drinks in just 30 seconds.

Headquartered in Australia, the company was co-founded by Paul Crabtree and Stephen Sptiz in 2003. Since then it has become a fast-growing franchise throughout Australia and New Zealand, with more than 200 franchisees around the world, including 12 locations in the US, two of which are company-owned.

9. Maui Wowi Hawaiian Coffees and Smoothies

Maui Wowi Hawaiian Coffees and Smoothies was started with a mission to offer up healthier alternatives to the sugar-heavy, fat-laden products offered by others. It also emphasizes a laid-back, “flip-flop attitude” while at the same time emphasizing “Ohana” or family-oriented community among franchisees and customers. Their smoothies feature proprietary non-fat yogurt recipes, fruit juices from exotic locations, fruit purees, and all-natural flavorings.

Founded by Jeff and Jill Summerhays in 1982 franchising since 1997, the number of locations has been in decline in recent years from 236 in 2011 to the current total of 128, of which none are company-owned and one is located outside the US.

10. PJ’s Coffee of New Orleans

PJ’s Coffee of New Orleans celebrated its 40th anniversary by opening its 100th location. It positions itself as a competitor to Starbucks and has a similar menu, but prides itself on better beans, superior roasting, and an overall passion for coffee-making. It serves up a wide variety of iced, frozen, hot, cold brew, and nitro-infused coffees using only the very best Arabica beans, along with organic tea and breakfast pastries. The chain was purchased by Atlanta-based Raving Brands in 2002, but subsequently returned to New Orleans in 2008 when it was acquired by Ballard Brands.

Founded by Phyllis Jordan “PJ” in the Carrollton neighborhood of New Orleans in 1978 and franchising since 1989, the number of locations has grown in recent years from 52 in 2012 to the current total of 122 (up from the previously reported total of 120), of which none are company-owned and six are located outside the US.

11. The Human Bean

The Human Bean is largely a western chain (though it is slowly creeping eastward) where customers enjoy drive-thru espresso and coffee beverages. The company is proud of its own coffee sourcing program, Farm Friendly Direct, in which it builds long-term relationships with coffee farmers, and encourages them to adopt sustainable growing methods. The company also pays them above-market prices to allow for investing in their communities by funding local infrastructure improvement projects.

The company does not charge franchisees any ongoing percentage-of-sales royalty or marketing fees, earning its revenues instead from the sale of coffee and supplies to franchisees.

Founded in Ashland, Oregon in 1998 and franchising since 2002, the number of locations has risen over the past 10 years from 47 in 2011 to the current total of 121 (up from the previously reported total of 105), of which 13 are company-owned and all are located in the US.

12. Hard Bean Coffee

Hard Bean Coffee isn’t so much a franchise as a pathway towards starting your own independent coffee house with lots of support. Founder and CEO Scott Bortz helps people plan, build, and open their own independent coffee shops for a flat fee without ongoing royalty payments. Owners can give their shops whatever name they like as long as they use the tagline “Powered by Hard Bean Coffee.” The company also has The Buying Co-Op, which allows coffee shop owners to leverage their collective buying power to purchase coffee and coffee-making equipment.

The company website says Hard Bean Coffee has helped to establish more than 100 different independent coffee shops over the past 20 years. The name comes from the type of coffee beans roasters call “hard,” which translates to more flavorful beans and typically grown at higher altitudes.

13. Aroma Joe’s Coffee

Aroma Joe’s Coffee is another drive-thru coffee chain that operates on three laws of service: No intercoms. No mistakes. No attitudes. It caters to a relatively young demographic with its hot and cold coffee drinks and its own branded Rush energy drink. Its “…proprietary coffee blend, roasted in Maine, uses only the best Arabica beans and is sustainably grown, ethically sourced and craft roasted in Maine by award-winning roasters” and is also 100% Rainforest Alliance Certified.

Founded by brothers Marty and Tim McKenna and their cousins Brian and Mike Sillon in New Hampshire in 2000 and franchising since 2013, there are currently 77 locations (up from the previously reported total of 70), of which two are company-owned and all are located in the US.

14. Dunn Brothers Coffee

Dunn Brothers Coffee is committed to daily small-batch, in-store roasting of coffee beans to achieve a richer, fresher quality. The roasting can only be performed by roasters who have completed the Dunn Brothers Coffee Certified Roaster Program. In addition to its coffee beverages, the menu at most locations features all-day breakfast with a build-your-own sandwich and hearty oatmeal, lunch offerings of sandwiches, salads, and soups, and fresh-baked pastries any time of day.

Founded by brothers Ed and Dan Dunn in the Twin Cities in 1987 and franchising since 1994, the number of locations has declined over the past 10 years from 91 in 2010 to the current total of 68 (down from the previously reported total of 75), of which five are company-owned and all are located in the US.

15. Coffee Beanery

Coffee Beanery was a pioneer in serving up specialty coffees back in the 1970s when it was a new concept. In addition to coffee and tea, the menu features smoothies and other beverages along with a selection of breakfast sandwiches, toasted signature sandwiches, paninis, and specialty wraps.

Founded by husband-and-wife team JoAnne and Julius Shaw in Dearborn, Michigan in 1976 and franchising since 1985, the number of locations has declined in recent years from 101 in 2011 to the last known reported total of 58 in 2019, of which two were company owned and 19 were located outside the US.

16. Sweetwaters Coffee and Tea

Sweetwaters Coffee and Tea offers customers a classic café experience of coffee and tea drinks with diverse and creative global influences. The menu also includes a selection of frozen drinks and other beverages, pastries, desserts, and light fare such as quiches, sandwiches, salads, and yogurt parfaits. Sweetwaters also retails its own coffee blends and bottled teas.

Founded by husband-and-wife team Wei and Lisa Bee in Ann Arbor, Michigan in 1993 and franchising since 2004, the company website currently lists 39 locations open now and another two listed as “coming soon.”

17. Café Barbera

Café Barbera is still a family-owned company after 148 years. It serves premium, authentic Italian-roasted coffee with its beans sourced from seven of the world’s finest varieties, which are slow-roasted separately and then blended into the company’s original recipe. In addition to hand-brewed coffee beverages, the menu features Italian-inspired panini sandwiches, Mediterranean-style salads, and light croissant breakfasts.

Founded by Domenico Barbera in 1870 in Italy but only franchising since 2004, the company website currently lists 38 locations in 17 countries, with an additional 10 locations listed as “coming soon.” There are currently none in the US.

18. Ziggi’s Coffee

Ziggi’s Coffee emphasizes sourcing its coffee and food ingredients from local vendors whenever possible. The menu features coffee, coffee alternatives, frozen “blenderz,” fruit smoothies, and a small selection of food items. Store formats include double drive-thrus, café with drive-thru, and just a café, although the primary emphasis has always been on the double drive-thru model.

Founded by husband-and-wife team Brandon and Camrin Knudsen in Longmont, Colorado in 2004, there are now 37 locations, of which seven are company-owned and all are located in the US.

19. It’s a Grind Coffee House

It’s a Grind Coffee House serves high-quality gourmet coffee, espresso beverages, better-for-you healthy cold drinks, and a range of home-baked foods in a comfortable, community-focused neighborhood environment. Locations feature a blues and jazz theme along with wingback chairs that allow customers to relax.

Founded by husband-and-wife team Marty Cox and Louise Montgomery in Long Beach, California in 1995 and franchising since 2000, the last known number of locations was 21 in 2019, of which none were company-owned and four were located outside the US.

20. DRNK coffee + tea

DRNK coffee + tea offers a wide selection of both hot and cold organic coffees and teas, handcrafted organic espresso drinks, raw squeezed juices, nutrient dense smoothie blends infused with superfoods, handmade organic Acai bowls, and a variety of fresh-made breakfast items, paninis, wraps, and salads. It has a greater emphasis on quality teas than most coffee shops, and focuses on organic and ethically-sourced products.

Founded by Thomas Nariman in 2013 and franchising since 2015, there are now 14 locations open, one of which is located outside the US (in Saudi Arabia). The company website also lists another seven locations as “coming soon.”

21. Euro Café

Euro Café has a menu that features a range of both hot and cold coffee and coffee alternative beverages, frozen drinks, fruit smoothies, breakfast sandwiches, salads, wraps, hot and cold sandwiches, hot paninis, burgers, soups, rice bowls, kebabs, and other food items.

Founded in 1997 and headquartered in Virginia, there are currently 10 locations, seven of which are within Hudson News and Hudson Bookseller locations inside airports in the US and three in airports in Canada.

22. Bottoms Up Espresso

Bottoms Up Espresso is the “Hooters” version of a coffee shop, but with a focus on a different part of the female anatomy. The company’s unique coffee beverages are served up by sexy baristas in bikinis. The menu features an array of classic coffee drinks, smoothies to which customers can add soy or whey protein, and “Twisted Energy” fruit-juice drinks to which customers can add an energy shot.

The company also markets a large selection of company merchandise that includes apparel, drinkware, outerwear, hats, and accessories. Founded in Modesto, California in 2011 and franchising since 2015, there are now nine locations, all in central California.

23. Classic Rock Coffee Company and Kitchen

Classic Rock Coffee Company and Kitchen can be described as the coffee shop version of the Hard Rock Café, and is definitely catering to a Millennial-friendly hipster-focused target market. Upbeat classic rock is always playing as customers enjoy coffee, frappes, smoothies, protein shakes, pastries, sandwiches, flatbreads, salads, and more. Electric guitars and album covers feature prominently in the décor, along with collections of classic rock albums patrons can thumb through.

Founded in Springfield, Missouri in 2011, the company website currently lists six locations in the US, one in Egypt, and one in India for a grand total of eight.

24. Rock ‘n’ Joe Coffee Bar

Rock ‘n’ Joe Coffee Bar is another “Hard Rock Café” approach to coffee shops. The chain features specialty coffees from Dillanos Coffee Roasters, sandwiches, wraps, salads, and pastries along with plentiful rock music and memorabilia in a laid-back setting that gives the feel of an exclusive backstage lounge. Its artisan coffees include such creatively-named options as Velvet Underground, Sledgehammer, Unplugged, and Black Dog.

Founded in New Jersey in 1993, there are now eight locations with three in New Jersey, three in Pennsylvania, and two in Lincoln, Nebraska. In 2013, the chain was purchased by Ablak Holdings with plans to take it nationwide.

25. The American House

The American House is focused on organic and natural products. It places as much emphasis on retailing its 400 loose leaf teas, 75 gourmet coffees, herbs and spice products in bulk as it does on serving prepared drinks to customers. The store ambience and decor are carefully crafted to make customers feel like they’re stepping back in time to the 1850s. It positions itself as an alternative to the “overly-commercialized” coffee shops of other chains and caters to the growing segment of consumers looking for more natural and healthy products.

The first location was established in San Diego, California, and though the company’s franchising program has been underway for several years, there is still just the one location.

An Important Note About Our Methodology

The franchises on this list were ranked according to the number of units in the franchise system. If you are a prospective franchisee searching for franchise opportunities that meet or exceed certain performance benchmarks for sales, profits, and return on investment, please check out this list of America’s Most Lucrative Franchises.