Coffee consumption in some form began around 850 A.D., and it has been evolving ever since. But recent factors affecting the centuries-old category—frequent price increases, shipping issues, increased labor costs and the added burden of U.S. tariffs—are creating challenges for operators. 

“Coffee today is trading at $4 a pound, and 24 months ago, it was half that price,” said Art Lopez, vice president of marketing at beverage supplier Finlays Solutions. “Consumers are making coffee at home, and it’s a concern. However, if a certain product has a perceived value, consumers will not cut back.”

During this period of uncertainty, Lopez advises convenience operators to “seek opportunities that exist. Reducing prices and adding more perceived value will help drive consumption. This is not the best news, but the consumer who went to Starbucks or Peet’s may be able to get a similar product at half the price at a c-store. This is an opportunity to pick up a portion of the business from coffee shops.”

Singular Technology

To keep customers coming back, many convenience stores have adopted bean-to-cup technology, which automates the grind-and-brew process, cuts waste and keeps coffee consistently fresh throughout the day. 

“Bean-to-cup equipment can help reduce labor demand on staff and requires minimal training,” said Kristen Hjelm, senior director of business development at Bunn. Hjelm estimates that operators can save 90 minutes to three hours of labor per store. 

 That focus on labor savings and consistency shaped the development of Bunn’s latest bean-to-cup innovation: Premia, a high-performance brewer that automatically grinds beans and brews hot or cold coffee while managing freshness for optimal availability during the busiest dayparts.

“Premia provides controlled heat to brewed coffee at ideal holding temperatures and maintains optimal flavor for longer periods, if desired,” said Chairil McClain, vice president of product strategy at Bunn. “Coffee is delivered to a reservoir that keeps it warm at a preset desired temperature. Customers just push a button and coffee is immediately dispensed into the cup. If you set the reservoir to hold for an hour, it will automatically drain and brew a new batch of coffee once that hour expires, which helps operators manage the daypart schedule.” 

 Premia comes with a lifetime subscription to Bunnlink, a telemetry portal that provides detailed information and reports about the number of cups brewed, recipe updates, reservoir filling schedules and other information that helps manage the program. 

Bunn is addressing beverage bar variety and efficiency with the Infusion Series Platinum Pro, a batch brewer that serves cold brew, iced coffee, hot coffee, tea and lemonade from one compact unit. “Traditional cold brew takes about 12 to 24 hours, depending on the recipe, but we use ambient filtered water and have condensed it to 20 minutes,” said McClain. 

 “One of coffee’s greatest strengths is its versatility,” said Emily Wood Bowron Forehand, executive vice president of Red Diamond Coffee and Tea. “It is the perfect canvas for creativity and flavor.” To give customers more options in less space, Red Diamond created its all-in-one OmniBrew program.

“OmniBrew helps operators deliver everything from iced coffee to tea and lemonade, all using a single tea brewer,” said Forehand. “By saving counter space and creating a low barrier to entry for traditionally challenging categories, the program lets operators maintain premium quality while easing operational pressures. It serves as the perfect canvas for creativity and flavor, and today’s coffee lovers seek bold and unique flavor combinations.” 

Irving, Texas-based 7-Eleven is investing in proprietary coffee equipment, such as the Coffee of the Future (COFU) machine, which was tested in the 7-Eleven Evolution Stores and lab environments. One of its purposes is to streamline beverage production and free up employees to focus on other tasks.

“The COFU machine offers hot and cold brew, specialty espresso beverages like lattes and mochas, multiple milk and syrup options, automated cleaning and multiple pickup points for faster service,” said a 7-Eleven spokesperson. “It’s a retailer-centric solution, built from the ground up with store operations and customer convenience in mind, and it reflects how we’re reimagining the self-serve beverage experience.”

After introducing a flavored coffee program in the fall, the EG Group convenience stores are “re-launching our coffee program in the new year, with blends tailored specifically to customers’ tastes and new equipment to ensure you can always enjoy your cup, your way,” said Julie Ryan, vice president of food and dispensed beverage at EG America. “We’re always looking at what’s trending in beverage and in food, and protein and energy are certainly on our radar for 2026.”

Functional Brew

Although Millennials and Gen Zers make up about 36% of the nation’s adult population, they are responsible for more than 41% of all wellness-related purchases. Much of their focus is on food and beverages with functional ingredients.

“The product extension that we’re seeing, beyond the protein shake, is around lattes and other coffee-based beverages that use high-protein milk and plant-based proteins,” said McClain. 

One example of this is Starbucks’ Protein Lattes, topped with protein cold foam, which rolled out in September. The protein lattes come in several flavors, along with two sugar-free versions and a high-protein matcha beverage. Matcha fans believe that adding the green powder to a beverage provides focused energy without jitters. Other claims include improved cognitive function, better mood, reduced inflammation and help with weight loss.

“You’ll find a lot of matcha on foodservice menus today in many global and national chains,” McClain said. “But the innovation around matcha is how you can prepare it, automating the process, and how you can create new beverages with it, especially cold.” 

The demand for beverages with functional ingredients is no temporary fad.

“The functional-coffee market is projected to grow at 11.45% CAGR, reaching $7.71 billion by 2030,” said Farley Kaiser, senior director of culinary innovation at McLane Co. “Ingredients like ashwagandha, reishi mushrooms and MCT oil [a saturated fat that reportedly improves brain function and energy levels] are becoming mainstream, and McLane is integrating these trends into our Emerging Brands platform and CupZa! coffee offerings to help retailers meet consumer demand.”

While CupZa! includes popular flavors such as Southern Pecan and Hazelnut, innovative flavors inspire repeat store visits, Kaiser said. To that end, McLane is investigating “more adventurous flavor trends such as Vietnamese egg coffee, Turkish coffee and matcha affogato,” she said. 

“Expect seasonal flavors to go beyond popular pumpkin spice with warm, festive flavors in winter, such as maple cinnamon, gingerbread or peppermint white chocolate, and fruity, tropical flavors in summer,” she said.

Still Chilled

The National Coffee Association reports that 49% of the cups drunk each day among those aged 18-24 are cold, iced or frozen, and that trend keeps growing. 

According to a Westrock Coffee report, nearly 60% of Gen Z coffee drinkers were introduced to the category through cold coffee. 

In addition, more than half of all cold coffee servings are enjoyed in the afternoon and evening, which changes coffee from a morning beverage into an all-day occasion. This evolution presents opportunities for new revenue streams in what were formerly considered off-peak hours.

Coffee on the Move

The American coffee scene has also seen a recent resurgence of coffee carts, kiosks and pop-ups. “Operators are trying to find smaller-footprint opportunities to prepare coffee beverages in front of consumers in mobile locations,” said Spencer Turer, vice president of Coffee Enterprises, a coffee and tea consultancy. 

One person succeeding at that is Peter Thomas, owner and founder of Pilot Pete’s Coffee & Treats, located inside the Elmhurst, Illinois, Metra train station. 

After opening his shop in 2021, “We expanded into pop-ups, mobile carts and catering, including espresso bars, ice cream carts, milkshake bars and hot chocolate stations,” Thomas said. “The mobile side grew quickly. People tried us at events, then wanted us at weddings, fundraisers and other functions. What started as a small café became a full-service mobile brand.”

The mobile carts are fully equipped with espresso machines, grinders and generators. Coffee is brewed fresh on-site whenever possible. “For large events, we’ll supplement with brewed urns to keep up with demand, but quality and freshness are always the priority,” he said. 

“These smaller footprints get a higher-quality coffee close to where consumers are,” said Turer. “This could be viewed as a threat to c-stores because they have the potential to pull business away from brick-and-mortar retailers.”

One Size Does Not Fit All

The National Coffee Association reports that two-thirds (66%) of American adults drink coffee daily. While that figure represents a large portion of the U.S. population, there is no single American coffee market, Turer said. Instead, you’ll find strong preferences depending on the region.

“If you aren’t selling as much coffee as you’d like, determine who is doing well in your marketplace. Those are your direct competitors,” he said. “If everyone has 100% Colombian and you don’t, that could be a reason why. If everyone has lighter roasted coffee and you only sell dark roast, that could be why. My definition of hospitality is, ‘Never give your customer a reason to go somewhere else.’” 

“Today’s customers want indulgence and wellness, and they love fun, photoworthy drinks like coffee flights, cold-brew floats and loaded lattes,” said Thomas. “They’re also looking for functional add-ins. Looking ahead, we’ll see more crossover drinks: coffee blended with lemonade, functional beverages and even cocktails. Coffee is moving beyond ‘a cup of coffee’ and becoming a lifestyle experience.”