Starbucks has opened more than 2,000 new cafes in the U.S. in the last three years, contributing to what some analysts say is an oversupply of coffee shops. With nearly 14,300 U.S. locations, there are now more Starbucks than there are McDonald’s in America.
“The U.S. coffee market is becoming over-stored, and traffic is hard to come by. There’s a lot of competition out there,” said John Zolidis, president of Quo Vadis Capital, an independent equity-research firm. “If they continue to open at the same rate, the impact of cannibalization will intensify.”