The Pandemic
Independent coffee shops across the country are still working to recover from the lasting economic damage brought on by the COVID-19 pandemic while facing intensified competition from large corporate chains that continue to expand their national footprint. For small business employees like Lakin Miller, head shift lead at Two Rivers Coffee in New Braunfels, the effects of the pandemic are woven into everyday operations, long after lockdowns ended and customers returned. “It was really rough,” Miller said. “Everyone being locked up and not seeing each other for so many months made things feel desolate for so long.” When shutdowns began in 2020, customer traffic at cafes like Two Rivers dropped almost overnight. The U.S. Small Business Administration reported that nearly one-third of small food and beverage businesses lost more than 40% of their revenue that year, and many never reopened. Those that did survive reopened to new challenges: inflation, higher ingredient costs, labor shortages, and changing customer routines. The broader landscape of the coffee industry shifted rapidly during the pandemic. Large corporate chains such as Starbucks and Dunkin’ were able to pivot quickly to mobile ordering, drive-thru sales, and digital customer programs. Smaller independent shops, however, often lacked the infrastructure to roll out similar systems in a short time frame, forcing them to rely on limited indoor operations and curbside pickup. According to the National Coffee Association 2023 market report, 60% of coffee drinkers now purchase from major chain outlets at least once a week, compared to 38% who visit locally owned shops. For many small business owners, that shift has cut directly into revenue. Miller said the difference between independent and corporate shops extends far beyond convenience or wait times. “The biggest difference between a small coffee shop and a big chain is the quality of what you’re getting and the service,” Miller said. “Small businesses allow owners to really care about the product and the people.” Economists say that small shops have less financial room to absorb the rising costs that have defined the post-pandemic economy. “ Small independent coffee shops operate on extremely tight margins,” said Dr. Carla Nguyen, an economist at the University of Kansas, in a 2023 university economic analysis. “When wholesale coffee prices rise or wages increase, big corporations can balance those costs across thousands of stores. A local café can’t.” That dynamic leaves the survival of independent businesses tied closely to community support.
Shop Small
For customers like Austin Huml, a frequent visitor at Two Rivers Coffee, that community connection is what keeps him returning instead of heading to a national chain. “When I go to a small business coffee shop, I feel that it is more personable,” Huml said. “The employees are nicer to receive. It’s not just getting you in the door and back out the door. They ask you personal questions. Over time, we’ve gotten to know each other.” Huml said that consistency—seeing the same baristas, forming relationships, and feeling recognized is something chains struggle to replicate. “The perks to choosing a small business would be just getting to know the employees more because those are the ones that are in there pretty much each day,” he said. “Seeing the same people over and over is nice. Just building that relationship, getting to know them, it’s not just about the drink.” That sense of belonging has become a powerful selling point for independent coffee shops that cannot compete on price, marketing budgets, or speed of service. Huml believes local shops offer something more valuable: time and intention. “I feel like the quality between the two is probably better in a small business,” he said. “They definitely take more time because they care about you a little more. They want to make the drink the right way, not just turn your background and get you out and get to the next person.” As communities resumed in-person gatherings post-pandemic, shops like Two Rivers became symbolic spaces of normalcy, conversation, and connection, something that was deeply missed during months of quarantine. “Seeing things full of life and full of people again is really hopeful,” Miller said. “It’s good for the community.” For many customers, returning to a local café meant returning to routine, identity, and a sense of belonging. Industry analysts say that even as major chains dominate the market, independent cafes have opportunities to differentiate themselves through specialty drinks, personalized service, community events, brand authenticity, social media engagement, and spaces that encourage people to linger—something rarely found in drive-thru chains. At Two Rivers Coffee, authenticity is central to its identity, Miller said. Many of her favorite memories come from events and gatherings the shop has hosted, moments when the café becomes more than a business and instead takes on the role of a community hub. “Every time we switch it up from our day-to-day, it’s fun,” she said. “Seeing all our regulars again, it just reminds you why this place matters.”
How Can You Help?
For small shops still operating under economic pressure, every customer choice matters. Inflation and supply chain issues continue to affect wholesale coffee bean prices, syrups, milk, and basic consumables like cups and lids. Some shops have been forced to raise prices, reduce hours, or shrink menus—changes that make community support even more essential. The SBA notes that every dollar spent at a local business circulates multiple times throughout the local economy, supporting workers, vendors, and other small businesses. In small towns across the country, neighborhood coffee shops often serve as social centers as much as retail businesses. For potential customers who default to national chains for speed or familiarity, Huml encourages them to give small businesses a chance. “I would say to take the extra few minutes out of your day and go give it a try,” he said. “I’ve met some really cool people in the small business world. They care about you. They care about the drink they’re making. I would definitely recommend just taking a few extra minutes out of your day and giving that a try.” For Miller, supporting local coffee shops is about more than a cup of coffee it’s about sustaining the connections that define a community. “When you walk in here, you’re not just buying a coffee,” she said. “You are a part of something that matters to the people who live here.” From morning greetings at the register to conversations that last longer than the time it takes to drink a latte, those everyday moments continue to define why small businesses, despite the odds, fight to exist. For many customers, a cup of coffee from a local shop is worth more than its price tag because it comes with something national chains still struggle to mass-produce: genuine relationships. And for independent coffee shops working to recover from years of economic uncertainty, those relationships may be the difference between closing their doors and serving their community for years to come.