Many coffee shops in US are going bankrupt amid rising prices — is your favorite brand on the list?

Several coffee chains have been feeling the pain amid rising costs, tariffs, competition and more.

PUBLISHED NOV 10, 2025

Representative image showing a waiter packing up cafe or restaurant chairs (Image source: Getty Images/Stock photo by The Photo Commune)

About two-thirds of American adults drink three cups of coffee every day, according to The Spring 2025 National Coffee Data Trends (NCDT) report. This also means that it pretty much fuels the workforce behind the US economy. But turns out that the people selling it have been struggling. With rising costs, growing competition, tariff wars, and global supply chain constraints, even coffee giants like Starbucks have been feeling the pinch. As global chains take measures to survive, many local roasters have had to file for Chapter 11 Bankruptcy protection, with no way out.

Representational image showing a customer interacting with the staff at Starbucks (Cover image source: Getty Images | mikkelwilliam) — Representational image showing a customer interacting with the staff at Starbucks (Image source: Getty Images | Photo by mikkelwilliam)

The most recent coffee chain to file for bankruptcy is Florida-based The Blend Coffee and Cocktails. The chain that operates eight locations in Florida, according to its website, filed for Chapter 11 bankruptcy protection in November. As per court documents, the chain listed its liabilities as between $500,001 and $1 million, and between zero and $50,000 in assets.

The single-location coffee shop in Austin, Cuppa Austin Coffee Shop, also filed for Chapter 11 protection in October. Established in 2013, the gourmet coffee shop with both dine-in and drive-through service, offering locally roasted coffee and cafe-style food. According to the bankruptcy tracker, RK Consultants, the filing comes after a period of financial strain and mounting debt. The company had previously laid off employees during the pandemic in 2020 to cope with the losses.

Facade of Red Bay Coffee cafe (Image source: Getty Images/Photo by Smith Collection/Gado)

Red Bay Coffee filed for Chapter 11 bankruptcy protection in August 2024. Business Times reported that the chain was forced to take the measure due to the effects of the COVID-19 pandemic and “spiraling costs and related uncertainties” regarding lawsuits. At the time, it was announced that the business would continue to operate under CEO Keba Konte as debtor-in-possession.

Another popular coffee chain, Switchback Coffee Roasters of Colorado, filed for Chapter 11 bankruptcy protection in August 2024, after 14 years in business. The Sun reported that the business struggled to recover from the effects of the COVID-19 pandemic and had to take measures after mounting $500,000 to $1 million in liabilities. Documents from the US Bankruptcy Court for the District of Colorado show that the chain reported having $50,000 to $100,000 in assets.

A sign leading to U.S. Bankruptcy Court | Getty Images | Photo by Chris Hondros — A sign leading to U.S. Bankruptcy Court (Image source: Getty Images / Photo by Chris Hondros)

Another Colorado-based coffee chain, Ink! Coffee filed for Chapter 11 bankruptcy protection in June 2024. As per Daily Coffee News, the company reported having assets of under $50,000 and debts between $1 million and $10 million. The company, founded by Keith Herbert in 1994, operated coffee retail locations in Aspen and Denver markets, and it had opened as many as 16 retail locations in the past decade.

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