Best U.S. Cities to Start a Drive-Thru Coffee Shop Business
10 Best U.S. Cities to Open a Drive-Thru Coffee Shop
Opening a drive-thru coffee shop is one of the best ways to get into the retail coffee business. Depending on your concept, many drive-thru coffee shops require less capital than a full sit-down coffee shop. A drive-thru coffee shop can also be just as profitable as a traditional brick-and-mortar coffee shop, but with the added benefit of being semi-mobile and cost less to get started.
To open a successful drive-thru coffee shop, you will need to write a thorough coffee shop business plan, decide on your menu, secure your startup funds, and find the best location. All of these elements will determine how much money you will make as a coffee business owner.
As you work out your business plan's details, you will want to start looking at prime locations in the general area you intend to do business.
Your Drive-thru coffee shop location focus should be on:
- Local zoning laws & regulations
- Real estate costs
- Size of your market
- Accessibility (for cars and foot traffic)
- Competitors
- Security
Drive-thru coffee shop requirements:
- Access to restrooms
- Nearby commissary
- Water and power hook up.
The drive-thru business model is proven to be an effective way to enter retail coffee. However, your location will be front and center in determining your success. Therefore, I wanted to see which American cities looked promising for new drive-thru coffee shop startups.
In surveying the best U.S. cities to open up a drive-thru coffee shop, I looked at several key factors, including the cost of housing, population growth, active lifestyle, unemployment rate, etc. These factors, I believe, lay a positive groundwork for starting a drive-thru coffee business.
Drive-thru coffee shop factors used in the survey:
- Low-cost of living
- Population size
- Lifestyle
- Unemployment rate
Further Reading: How to Start a Coffee Shop Successfully
Independent drive-thru coffee shops and franchise businesses are thriving in the United States.
Drive-Thru Coffee Stand Article Resources:
Starting a Drive-Thru Coffee Shop
10 Best U.S. Cities to Open a Drive-Thru Coffee Shop
Amarillo, Texas
Along the famous Route 66, you will find the vibrant city of Amarillo in the Texas panhandle.
Amarillo has a young and growing population. The unending passion for cars, football, and drive-thru burger stands make this city and its surrounding area a great place to open a drive-thru coffee shop.
Housing costs: 28% lower than the national average
Metro area population: 260K
Median income: $50,000
Unemployment rate: 4.7%
Memphis, Tennessee
Hugging the banks of the great Mississippi River, this city is steeped in tradition. From Memphis blues, world-famous Barbeque, and Graceland – the home of Elvis Presley – Memphis captures the musical imagination.
The city has struggled tremendously from the pandemic, but it’s sure to make a comeback with economic heavyweight hitters who call this city home, including FedEx, AutoZone, and International Paper. It is also home to the NBA team, Memphis Grizzlies, and several prominent universities.
Memphis shows its love of music, great food, and southern charm – and would make an excellent place to open a drive-thru coffee shop.
Cost of living: 17.3% below U.S. average
City population: 650,632 (greater Memphis area is 1.1 million)
Median home value: $103,700
Unemployment rate: 11.9%
Oklahoma City, Oklahoma
Oklahoma City has a growing population that loves art, basketball, BBQ, and coffee.
Home of the NBA’s Oklahoma City Thunder, Oklahoma Philharmonic Orchestra, the Oklahoma Contemporary Art Center, and the National Cowboy & Western Heritage Museum, you feel that things are changing in this town.
The energy is here. And that energy is partly fueled by coffee. There are plenty of options to open a drive-thru coffee shop business with lots of open highways. With a low cost of living and low unemployment, opening a drive-thru coffee business makes perfect sense.
Cost of living: 14.2% below the U.S. average
City population: 1.4 million (Oklahoma Metro area)
Unemployment rate: 13.7%
Median home value: 152K
Lynchburg, Virginia
Nestled in the foothills of the Blue Ridge Mountains, Lynchburg has steadily grown since its founding in 1786.
It is home to several major universities; you’ll find no trouble finding college students rushing to get coffee on their way to class. The region is in love with cars and outdoor activities.
With the low cost of housing and living, opening a drive-thru coffee shop catering to locals can be appealing to the would-be coffee entrepreneur.
Cost of living: 11.4% below U.S. average
City population: 82K
Median household income: $42K
Unemployment rate: 5.9%
Further Reading: Requirements to Start a Coffee Shop
Madison, Wisconsin
Madison is a fast-growing city with so many great things going for it; it’s hard not to see the potential of opening a drive-thru coffee shop.
Madison is surrounded by some really nice lakes and has a major university. Its famous botanical gardens, zoo, and lovely public spaces make Madison a charming city to live and work in.
Equipped with four glorious seasons, Madison is perfect for piping-hot Americanos and lattes in the cooler months and cold brew and nitro coffee in the summer. Finally, the love for cars and the open road also runs deep here in other parts of the U.S., making this a great city to open a drive-thru coffee shop.
Cost of living: .6% higher than U.S. Median
City population: 260K
Median household income: 54K
Unemployment rate: 4.3%
Plano, Texas
Just about 30 miles from Dallas, Plano seems like a world away. A mellow, easy-going city can describe Plano, but it is anything but boring. Plano offers its residents tons of things to do. It’s also home to such companies as Frito-Lay and Toyota North America.
The community-centered city filled with many cars and trucks is seemingly a perfect place to open a drive-thru coffee shop.
Cost of living: 9% higher than the national average
City population: 289K
Median household income: $80K
Unemployment rate: 3.1%
Scottsdale, Arizona
Scottsdale is a city that is full of outdoor adventures and wonder. While it’s considered part of the Phoenix area, it’s the perfect spot to jettison to the Grand Canyon. Filled with great shopping, restaurants, and outdoor activities, you’ll find plenty of people in their cars waiting to get their daily coffee.
Scottsdale has extreme heat, cool autumns, and dustings of snow in the winter. You’ll be sure to have different coffee menu items in your drive-thru coffee shop.
While Scottsdale is one of our higher cost of living cities on this list, it stands out for its mobility, thriving culture, sunny skies, beautiful landscapes, and appetite for good coffee.
Cost of living: 25% above the national average.
City population: 255K
Median household income: $72K
Unemployment rate: 5.4%
Boulder, Colorado
At the foothills of the Rocky Mountains, Boulder is a beautiful city. Just 30 minutes from the Capital of Colorado, Boulder is easy on the eyes, offering stunning views and amazing hikes.
It has been nominated among the happiest places to live in the U.S. For a good reason, too. The natural beauty surrounding it, the long list of craft breweries, and the restaurant scene make Boulder a wonderful place to live.
Filled with active people, an impressive University of Colorado, and locals who love good coffee, it certainly makes for a great place to set up a drive-thru coffee shop!
Cost of living: 67% higher than the national average
City population: 107K
Median household income: $84K
Unemployment rate: 5.7%
Billings, Montana
The people of Great Sky Country love a good cup of coffee. This is especially true when they are driving long distances throughout this gorgeous, expansive state.
Montana has extreme weather of hot and cold, incredible nature, and wild mountains. Its people are warm, friendly, and hard-working. Having a well-stocked drive-thru coffee shop will be a must in this coffee-loving state.
Cost of living: 5% below the national average
City population: 110K
Median household income: 49K
Unemployment rate: 11.1%
Raleigh, North Carolina
Raleigh, the beautiful “City of Oaks,” is one of the country's fastest-growing cities.
With young tech workers, plenty of students, and hard-working North Carolinians, opening up a drive-thru coffee shop should sound appealing to coffee entrepreneurs.
Additionally, with so many universities and tech companies relocating here, having a drive-thru coffee shop at the right location would seem like a success story in the making.
Cost of living: 2% above the national average
City population: 469K
Median household income: $65K
Unemployment rate: 6.2%
The Best Cities to Open a Drive-Thru Coffee Shop in 2021
As you can see, these amazing and growing cities run the entire spectrum of diversity. And yet, they have one thing in common: optimism.
They are all growing or evolving cities and full of life – and are all in need of great coffee on the road.
There are literally hundreds of other amazing cities and towns across the U.S. that would make for a great coffee business location. Wherever you happen to be considering opening your drive-thru coffee shop, you’ll want to take a look at the same demographics.
Once you determine whether the demographics are favorable to your general coffee business, you will want to choose a drive-thru coffee concept and menu.
As you look further, finding a specific location easily accessible by car or foot is always important. This means considering the flow of traffic, speed of traffic, street lighting, and ability for cars actually to turn into your drive-thru coffee shop area.
Best Locations to Setup a Drive-Thru Coffee Shop Recommendations
Before Choosing a Drive-thru Coffee Shop Location
Local zoning laws
Before settling on a specific location for your drive-thru coffee shop, you will want to check with your local government agencies. These agencies can tell you if a specific section of the road is properly zoned for commercial use. Sometimes these regulations get very specific. Be sure to specify that you are starting a drive-thru coffee shop business. Additionally, detail the exact address as you may be properly zoned on one side of the street but not on the other. In other words, don't assume, since there is a drive-thru coffee shop across the street, that you will be able to run your business on the other side.
You can start with your local department of transportation, health department, or buildings department to get information.
Feeling Out the Community
Take the necessary time to feel out the community in general. Will the community support a new drive-thru coffee shop, or will members try to introduce a new ordinance to prevent your business license renewal?
Some communities may feel different about drive-thru businesses as they are not your traditional brick-and-mortar coffee shops. They may also be curious and invested in knowing what type of structure you consider bringing in. The structure itself may need to “fit in” with the general vibe of the other businesses.
Research Local Competitors
I always recommend taking a serious look at the potential competition in the area before settling in a specific place. Even those businesses that can be considered “substitute” competition can have an impact on your drive-thru business. Substitute competitors are those who do not directly compete with you but may offer coffee to their customers.
Consider that many independent drive-thru coffee businesses understand the importance each of their regular customers has on their bottom line. Your business is a threat to their sustainability. Anticipate a possible reaction by existing coffee businesses and how that will impact your drive-thru business.
Getting The Right Coffee Shop Structure
If you have settled in on a specific location for your business, you’ll want to determine what type of drive-thru shop structure you will move onto the site.
Drive-thru coffee shops come in all shapes and sizes. You’ll want to pick one that allows you enough room to operate the way you want but also provides enough room for cars to drive around.
You may have a manufacturer build a custom drive-thru coffee shop, or you may purchase a used one. There are both advantages and disadvantages to this scenario that are beyond the scope of this article. Some drive-thru coffee shops can also be converted from mobile coffee units like existing coffee trucks or coffee trailers. Whichever one you choose, make sure that it is properly constructed and is “up to code” with your local building's department.
Choosing Your Coffee Equipment
After choosing a location, you should now determine what will be on your menu and what coffee equipment you will need.
If you plan to offer a wide variety of menu items, you’ll want to choose the right commercial-grade coffee equipment with the appropriate capacity to serve your estimated number of customers.
Your estimated volume of sales will also have an impact on your coffee equipment choices. For example, your drive-thru coffee shop might be so busy that you may need a four-group espresso machine or two espresso machines with 2 groups.
Develop Your Coffee Company Brand
In every move you make (and every breath you take), you will want to ensure that you are developing your drive-thru coffee branding.
Your branding will be a powerful tool to help you stay connected to your customers and help you stand out in a potentially crowded field.
Develop and Create Your Budget
Your drive-thru coffee shop concept and location will have a direct impact on your overall coffee business budget. Figuring out how much money you'll need will require you to develop a well-written budget. Your budget should consider all startup costs, including fees, permitting, transportation, storage, and coffee equipment.
For more information on opening a drive-thru coffee shop, please read our article, 15 Steps to Opening a Drive-Thru Coffee Stand.
photo credit: Alfie Price
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