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

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the truth: The biggest thing standing in the way of independent coffee shops isn't the quality of their coffee—it's outdated business models, inefficient operations, and a lack of technology that actually drives growth.

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.

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 ✅ Capture more to-go orders—which make up 80% of coffee sales ✅ Compete with Starbucks-level convenience through mobile ordering

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.

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 ✅ Make loyalty a game-changer—not just a "nice-to-have" punch card ✅ Join forces with other independents—When coffee shops work together, they become more convenient than any chain

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.

The Solution: Automate & Optimize

✅ 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

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.

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.