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The 3 Biggest Challenges Holding Independent Coffee Shops Back (And How to Overcome Them)

Written by Nick Martin | Feb 20, 2025 1:08:29 AM

Independent coffee shops are the heart of their communities—offering far more character, quality, and personal connection than the big chains. But when it comes to growth and staying competitive, many shops run into the same roadblocks.

Here’s the truth: The biggest thing standing in the way of independent coffee shops isn’t the quality of their coffee—it’s outdated business models, inefficient operations, and a lack of technology that actually drives growth.

After working with thousands of coffee shops, we’ve identified the three biggest challenges holding independents back—and how to break through them.

 

 

[VIDEO: Co-Founder Nick Martin shares insight on difference between local coffee and national chains in their approach to technology and growth] 

1. Seeing Your POS System as an Expense Instead of a Growth Engine

Many independent coffee shop owners view their point-of-sale system as nothing more than a necessary tool to process payments. Meanwhile, Starbucks and other major chains see their POS as their primary growth driver.

What’s the Difference?

  • More than half of all Starbucks orders happen through their app.
  • Their digital ecosystem doesn’t just process transactions—it creates repeat customers.
  • Starbucks' loyalty program is so powerful that its prepaid balances qualify the company as the 10th largest bank in the world.

How This Holds Independents Back:

Most coffee shop owners are paying monthly fees for software that doesn’t actually drive more sales. Square, Toast, and others bundle in extra tools—but if they aren’t actively bringing in new customers or getting existing customers to order more often, then they’re just added expenses with no return.

The Solution: Adopt a Growth-First Mindset

Your POS shouldn’t just take orders—it should actively increase sales. Independent shops need a system designed to:


Drive more repeat business through smart loyalty programs that actually change customer behavior.
Capture more to-go orders—which make up 80% of coffee sales.
Compete with Starbucks-level convenience through mobile ordering and rewards that work across a network of independent shops.

If your current POS can't guarantee sales, it's just betting on making it hard to leave when you don't get the value you deserve. That should be a red flag 🚩

At Joe, our platform is built not just to process payments—but to make sure every shop actually grows. That’s why we’re the only system that guarantees growth.

2. Losing Business Due to Lack of Convenience

Consumer behavior is clear: People choose convenience first.

  • The average American drinks three cups of coffee a day.
  • The biggest demand spikes are morning commute, late morning, and early afternoon.
  • 80% of coffee orders are to-go.

The problem?
Most independent coffee shops can only serve 30% of that demand—while Starbucks captures almost all of it.

Even big brands with a few hundred locations struggle to be truly convenient. That’s why Starbucks opens locations across the street from each other—they know most customers won’t even cross the road if they don’t have to.

How This Holds Independents Back:

  • If customers can’t count on their order being ready quickly, they’ll go to the chain that guarantees it.
  • If your loyalty program doesn’t make your shop the top-of-mind choice, customers will go elsewhere.
  • If your shop isn’t connected to a larger network, you’re losing business to shops that are.

The Solution: Convenience Wins Every Time

You don’t need thousands of locations like Starbucks—you just need the right technology.

Offer seamless mobile ordering—so customers can place orders ahead and pick them up without waiting.
Make loyalty a game-changer—not just a “nice-to-have” punch card, but a real incentive that keeps people coming back.
Join forces with other independents—When coffee shops work together, they become more convenient than any chain.

This is exactly why we built Joe. Our technology unites independent coffee shops, creating a more convenient footprint than Starbucks.

3. Wasting Time and Energy on Inefficient Operations

Growth is exciting—but if it comes at the cost of overwhelming your baristas and slowing down service, it can be just as harmful as stagnation.

Many independent coffee shops are bogged down by manual data entry, disconnected tools, and systems that aren’t built for efficiency.

How This Holds Independents Back:

  • Baristas spend too much time on admin tasks instead of focusing on making great drinks and giving great service.
  • Shop owners are stuck managing tedious workflows instead of growing their business.
  • Lack of automation creates bottlenecks, leading to longer wait times and frustrated customers.

The Solution: Automate & Optimize

The best coffee shops don’t just grow their customer base—they streamline their operations so they can handle more business without added stress.

Order management should be effortless—with smart automation that eliminates manual entry.
Baristas should be freed up to focus on customers, not screens.
Financial security should be built-in—so baristas earn more as the shop grows, creating a more sustainable work environment.

At Joe, we designed our order management system, kiosks, and barista tools to make sure that growth is a positive experience for everyone involved.

The Future of Independent Coffee is Bright—If We Work Together

The challenges facing independent coffee shops aren’t about quality—they’re about technology, convenience, and efficiency.

The good news? When independent coffee shops join forces, they can outcompete Starbucks and other chains.

At Joe, we’re on a mission to make that happen. Our goal is to get 20% or more of independent coffee shops in every market on Joe. If we do that, we become the largest and most convenient coffee network in the country.

🚀 The result? More customers. More growth. More independent coffee shops thriving.

If you’re ready to stop playing defense and start growing your shop the way Starbucks does, let’s talk.

 

Ready to grow like the big guys while keeping your independence? 

👉 Get Started with Joe Today