Walking through downtown Iowa City, 13 coffee shops can be found in Iowa City’s Downtown District alone. Two of these coffee shops are chain coffee corporations, but the vast majority are locally owned, small businesses, forced to compete with well-established brands in the coffee industry.
On Aug. 26, Starbucks released its Fall Seasonal Menu. For Molly Kirby and Connor Jenkins, owners of Kindred Coffee, this marks a wave of people hoping to get these same drinks at their coffee shop.
“We don’t see a decrease in customers, but we do see an increase of people asking for those drinks,” Kirby said.
Kirby and Jenkins opened Kindred’s doors in 2024. Since then, they have been learning the particulars of running a local coffee shop.
Although chain coffee shops like Starbucks and Dunkin’ Donuts are in the area, Kirby does not feel like these places are competition for Kindred Coffee. Starbucks and Dunkin’ Donuts declined The Daily Iowan’s request to comment.
“A lot of people’s coffee habits are based on location. We don’t have a chain next door to us like some of the other shops do, so we kind of lucked out in that area,” Kirby said.
Cortado Mediterranean Cafe is located on the same street as Dunkin’ Donuts and downtown Starbucks. Although surrounded by big-name coffee shops, Owner Yochai Harel does not feel intimidated by the presence of these businesses.
“They are focusing on getting our business. We are focusing on just staying in business,” Harel said. “I know that they are focusing on us, so to me that’s a compliment.”
Kirby said her coffee shop differentiates itself enough from chain stores that, in some ways, they offer a completely different product and experience.
“Our espresso and coffee is all prepared by hand,” Kirby said. “Here the barista grinds the coffee, prepares the [espresso] puck, and pulls the shot.”
This way of making espresso drinks is in comparison to Starbucks and Dunkin, in which everything is an automatic push of a button. Kirby and Jenkins said their way of crafting drinks makes their product more authentic.
“We have an attention to detail, consistency, and quality in that way,” Kirby said.
With the intersection of Iowa City and the University of Iowa campus, these coffee shops are heavily sustained by college students during the school year.
“I would say we see at most a 20 percent increase in sales when students come back,” Kirby said. “We also have a lot of people who just live here and work here year-round. That really sustains our business.”
RELATED: North Linn Street gains a new cafe with a locally sourced, organic menu
Local coffee shops across Iowa City draw students due to their ambiance. Many of these coffee shops offer seating for studying or socializing.
“I personally go to the local [coffee shops] more because that is something we don’t have in my hometown, and it is a really fun atmosphere,” Maddie Sierk, a first year at the UI said.
Sierk said she likes the coffee being served, but she also enjoys that these shops offer a place for her to get some work done.
“I like to sit down and study there. There are always a lot of other students there, and it can be a fun place to be with people with similar interests to you,” Sierk said.
Kindred Coffee also sets itself apart with its food and drink items.
“We have a big focus on vegetarian and vegan options. Our cold foam is vegan by default, our sandwiches are vegetarian, and our baked goods are gluten free and vegan,” Kirby said.
Harel uses authentic Mediterranean food to differentiate Cortado from other chain coffee shops. Cortado offers salads, sandwiches, breakfast items, and hummus plates. While their food menu draws traffic into Cortado, Harel said neighboring competitors take away other aspects of his shop.
“They still take away people who [used to] come and go, people that are not from Iowa City,” Harel said. “They used to come here. But that doesn’t happen as much anymore.”
Kindred Coffee has adapted some of the Starbucks culture in its shop. While they want to keep originality, Jenkins says, it also can be good for business to adjust to what is trending at the chain coffee shop level.
As for the prices of drinks, Kirby does not feel the pressure to price match with chain coffee shops.
“We are not Starbucks. We do not have that kind of pricing power like they do to buy in bulk or work directly with coffee farms,” Kirby said. “We keep our prices as low as we can, but we also have to make sure that we pay the bills and our staff gets paid.”
Because of Starbucks’ presence in the coffee industry, the company has the power to raise prices without losing customers. Due to their convenience, marketing, and brand recognition, Starbucks can charge more for its products because its customers are willing to pay.
Kirby and Jenkins feel people who shop locally understand the importance of supporting local businesses and are comfortable with paying a little bit extra for their morning coffee.
“I think when you are coming to a local coffee shop, part of what you are paying is to keep your dollars in the local economy,” Kirby said.
