Starbucks started it but now the fight for America’s daily drink habit has entered a new and more competitive phase. Fast-food titans Taco Bell and Chick-fil-A are taking direct aim at the coffee giant’s turf, rolling out drink-centered spin-offs designed to capture the booming beverage economy and the attention of Gen Z consumers who see their daily drink as both a treat and a lifestyle symbol.
Taco Bell’s Live Más Café and Chick-fil-A’s Daybright are the latest players to join the fray. Both concepts are beverage-first experiences, offering colorful, highly customizable drinks that range from sodas and juices with whipped toppings to fruit infusions and specialty coffees all crafted to be as Instagrammable as they are flavorful. Each café includes limited food options, signaling a focus on beverages as the new anchor for casual dining.
Chick-fil-A plans to debut its first Daybright location in Atlanta later this year, while Taco Bell has already opened five Live Más Café stores across California, with ambitions to open 30 more throughout Southern California and Texas by fall 2025. The brand’s broader goal is to drive $5 billion in beverage sales by 2030. “Live Más Café was created from the insight that fans especially Gen Z see beverages as more than just refreshment; they’re part of a lifestyle and daily ritual,” a Taco Bell spokesperson said. “Our trained ‘Bellristas’ are taking the experience beyond specialty coffee.” Chick-fil-A declined to comment on its beverage plans.
Their timing couldn’t be more strategic. Beverage-focused menus are sweeping across the fast-food and fast-casual landscape, with chains like Panda Express, KFC, and Burger King also investing in trendy drink offerings. The goal: to attract younger, value-conscious customers who want vibrant, customizable, and social-media-ready refreshments without Starbucks’ price tag.
Starbucks, which has long dominated the $100 billion beverage industry, is suddenly finding itself surrounded by challengers. Competitors like Dutch Bros have already proven that speed, affordability, and novelty can siphon off Starbucks customers. In July, Starbucks reported its sixth consecutive quarter of declining same-store sales, while Dutch Bros posted a 4.7% same-store sales increase in Q1 2025 and a 28% year-over-year revenue jump in Q2.
The arrival of Live Más Café and Daybright adds new layers to this brewing rivalry. Their youthful energy and lower price points may appeal to the next generation of beverage lovers who view drinks as both self-expression and content. “These smaller concepts focused on drinks are creating a space for consumers who are very value-conscious,” said Michael Della Penna, chief strategy officer at InMarket. “You can have a relaxed, lounge-style environment to connect with friends, to do some work, but you don’t have to spend an arm and a leg to be there.”
While Starbucks continues to focus on its “Back to Starbucks” initiative under CEO Brian Niccol, the company faces the challenge of redefining its value proposition in an era of rapidly changing consumer habits. Newspapers previously reported that the initiative has gained some traction, but Wall Street remains skeptical of the turnaround. It’s still unclear whether these fast-food newcomers can succeed where McDonald’s failed.
McDonald’s learned firsthand how difficult it is to compete with Starbucks’ model. Its CosMc’s concept a drink-only spin-off that launched to early fanfare shut down after just 18 months of testing. Still, analysts caution against underestimating the fast-food giant’s capacity to pivot. “They probably took many learnings away from the CosMc’s cafés that they can then populate through in-house,” said Motley Fool analyst Asit Sharma. “This beverage battle is a good challenge for Starbucks. Every dominant brand needs competitors to stay sharp.”
Despite its recent stumbles, Starbucks is far from losing the fight. The company continues to introduce new innovations, like its protein cold foams and celebrity collaborations, including a recent Taylor Swift listening event tied to her album The Life of a Showgirl. A company spokesperson said Starbucks’ customer value perception scores are at two-year highs, driven by gains among Gen Z and millennials, who now make up more than half of its customer base.
“I never count out Starbucks,” Della Penna said. “They’re not sitting back and watching this trend just take over.” Analysts agree that Starbucks’ extensive infrastructure gives it a major advantage the company can quickly roll out new flavor combinations or test ideas inspired by rivals at scale. Still, this flexibility comes with a risk.
“Starbucks has the ability to match competitors drink-for-drink,” Sharma said. “But where they struggle is complexity. Once they start competing ingredient for ingredient and layer for layer, they risk slowing down operations and that’s where things can fall apart.”
As Starbucks works to stabilize its brand identity and restore growth, the competition is heating up. Beverage-focused upstarts like Live Más Café and Daybright are not just trying to sell drinks they’re trying to redefine what it means to grab one. Whether Starbucks can hold onto its cultural and financial dominance depends on whether it can stay authentic while adapting to the new beverage generation.
The question now isn’t just who makes the best coffee it’s who controls the ritual of America’s daily drink.
