Should Local Coffee Shops Give In To Pressure To Offer Drinks Similar To Larger Chains? – CoffeeTalk

Kindred Coffee, one of thirteen coffee shops in downtown Iowa City, is focusing on differentiating itself from other chains through its coffee and atmosphere. The company, co-owned by Molly Kirby and Connor Jenkins, has seen an increase in customers asking for similar drinks to Starbucks’ Fall Seasonal Menu. Kirby and Jenkins opened Kindred Coffee in 2024 and have been learning the details of running a local coffee shop since then.

While chain coffee shops like Starbucks and Dunkin’ Donuts are in the area, Kirby does not feel like these places are competition for Kindred Coffee. They are surrounded by big-name coffee shops, but owner Yochai Harel does not feel intimidated by their presence. Kirby and Jenkins say their unique approach to crafting espresso and coffee makes their product more authentic and maintains an attention to detail, consistency, and quality.

Cortado Mediterranean Cafe, located on the same street as Dunkin’ Donuts and downtown Starbucks, is heavily sustained by college students during the school year. Kirby believes that they see at most a 20% increase in sales when students return, and they also have many people who live and work here year-round, which sustains their business.

Local coffee shops across Iowa City draw students due to their ambiance, offering seating for studying or socializing. Maddie Sierk, a first-year at the University of Iowa, enjoys the coffee being served and the fun atmosphere of local coffee shops. Cortado also sets itself apart with its food and drink items, focusing on vegetarian and vegan options. Kirby says that Cortado offers salads, sandwiches, breakfast items, and hummus plates, while Harel uses authentic Mediterranean food to differentiate it from other chain coffee shops.

Kindred Coffee has adapted some of the Starbucks culture in its shop, but it also can be beneficial for businesses to adjust to what is trending at the chain coffee shop level. Kirby does not feel the pressure to price match with chain coffee shops, as they do not have the kind of pricing power they do to buy in bulk or work directly with coffee farms. Starbucks’ presence in the coffee industry allows them to raise prices without losing customers, as they have the power to charge more for their products due to their convenience, marketing, and brand recognition.

Kirby and Jenkins believe that people who shop locally understand the importance of supporting local businesses and are comfortable with paying a little bit extra for their morning coffee. When customers come to a local coffee shop, they feel that part of what they are paying is to keep their dollars in the local economy.

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