Everyone knows Denver for its outdoor lifestyle, proximity to the mountains, craft beer and 420-friendly vibes. But the city also has a vibrant coffee culture with independent staples like St. Mark’s Coffee House, Crema Coffee and Convivio Café capturing the essence of the scene.
Beyond serving a good cup of coffee, these independent shops offer a sense of community – a place for remote workers, study sessions, open mics, poetry readings, food trucks, yoga flows.
Recently, that appeal has also driven growth, not just for mega-chains like Starbucks and Dunkin’, but for a new generation of java giants like Dutch Bros, 7 Brew Drive Thru Coffee, Scooter’s Coffee and The Human Bean, which are making moves in the Centennial State, alongside local chains such as Ziggi’s Coffee, Novo Coffee and Bad Ass Coffee of Hawaii.
At 20.5 cafes per every 100,000 residents, Denver has 63% more coffee shops per capita than the average city, according to data from Clever Real Estate. It also has “one of the highest-rated coffee shop scenes,” with an overall 4.45 stars out of 5 on Yelp as opposed to the average 4.33.
What’s driving the growth behind Denver’s coffee boom? And is there enough room for everybody?
According to Brandon Knudsen, owner of Mead-based Ziggi’s Coffee, there is. “The market really isn’t oversaturated because there’s so much room for more coffee business – something like 60% of people drink coffee.” This statement lines up with data from the National Coffee Association, which indicated in its 2023 trends report that 61% of Americans consumed traditional coffee in the past week.
Founded in 2004, Ziggi’s currently stands at nearly 100 open stores nationwide with another 280 in the pipeline. All of its outposts except for two are drive-thrus, which speaks to the explosive growth that the drive-thru sector specifically has seen post-COVID.
“Competition in the coffee space intensified even more during COVID when the entire world overnight needed a drive-thru,” noted Scott Snyder, CEO of Bad Ass Coffee of Hawaii.
Founded on the Big Island of Hawaii but now headquartered in Centennial, Bad Ass has 32 open locations nationwide and approximately 130 franchised locations in various stages of development, including several in Colorado. Despite the boom in coffee shops that the Centennial State has seen, Snyder is confident that there’s plenty of room in the market.
“Coffee is probably the number one habit out there,” he said. “You can only eat burgers or pizza so many times a week, but most of us have coffee every day, and often more than once a day. Tapping into those consumers’ preferences and delivering exceptional experiences is really what’s most important to success.”
Courtesy of Bad Ass Coffee of Hawaii
Bad Ass Coffee of Hawaii moved its corporate headquarters to Colorado in 2019 and is planning an expansion here. (Provided by Bad Ass Coffee of Hawaii)
Snyder added that a youthful and adventurous population, and a business-friendly environment, make Colorado an attractive place for both in- and out-of-state-brands. “Colorado has always been a destination for entrepreneurs, for people that want to try new things. Its population is more on the bleeding edge than the trailing edge. I think that’s really attractive for a business.”
From the newly-opened independent coffee shop’s perspective, however, the caffeine competition can be overwhelming. “There’s a coffee shop on every corner, especially in Five Points. We’re pretty resourceful but sometimes our budget might limit us compared to other shops,” said Marisol Jurado, owner of the recently opened Migas Coffee.
Jurado and business partner Alex Merriex specifically opened Migas in Five Points, a historically black neighborhood, to create space for the BIPOC community in a rapidly gentrifying area. It’s located inside Green Spaces, a co-working facility and market at 2590 Walnut St.
“Alex’s grandfather grew up in Five Points and it was important for us to take up space in this area and show we deserve to be here,” Jurado expressed. “In some ways, it’s inspiring to see so many shops opening because, if they can do it, we can do it. But in other ways, these bigger brands have so many resources to keep popping up, and to do so with less intention. That’s where we feel we need to work harder to create an authentic experience to draw customers in.”
Heather McCullough, director of operations at the Denver-based Novo Coffee, also acknowledged the importance of intentional growth. Novo has six open outposts throughout metro Denver, and recently opened a second kiosk in Denver International Airport. It is also working on a new shop in Congress Park and an upcoming collaboration in Five Points.
“We are eager to serve new neighborhoods, but also want to do so in a way that is responsible and creates stability and security for existing staff…We are motivated by being a destination for great coffee for our own Colorado community and growing brand loyalty locally,” said McCullough.
Ultimately, the business owners The Denver Post spoke to agreed that the key to success in Colorado specifically is excellent service.
“Coloradans want variety. They’re not sheep, they don’t go somewhere just because everyone else is going there. To be successful in Colorado, you need a strong point of differentiation,” said Snyder. “What sets [Bad Ass Coffee of Hawaii] apart is that it’s an experiential brand. You really feel the aloha spirit through our ohana (family) [which is how they refer to employees] and the decor, even at our drive-through only locations you can feel it.”
“I think a lot of brands will continue to come here, but I don’t know if all of them will make it because Coloradans want great service,” added Ziggi’s Knudsen. “They’re willing to pay for a premium product but you’ve got to take good care of them.”