Scooter’s Coffee has been operating in the Houston area since early 2021. The drive-thru only coffee shop was not the first of its kind in Houston, but it was the first in a new wave of similar shops. Dutch Bros. would arrive in Houston a few months after Scooter’s, and 7 Brew wouldn’t make it here until 2023. While the drive-thru coffee market doesn’t seem to be slowing down, it appears that the competition may soon leave behind Scooter’s. At the time of this post, Scooter’s has 10 operating locations, and two closed in the Houston area. Compare this to Dutch Bros., which has over 35 Houston-area locations, and 7 Brew, with about 8 locations; neither has permanently closed any locations. Dutch Bros. has been rather aggressive with its expansion, investing in its chain and planning to build three new Houston-area locations in the future. 7 Brew is a bit slower in its expansion, but also has new stores on the docket for the Houston area, while Scooter’s does not have any stores planned for Houston at the moment. While this isn’t a dire situation for the national chain, it doesn’t paint an auspicious picture for its future in Houston.
So what’s going on with Scooter’s? Well, they’re having a hard time everywhere. The closures in Houston are indicative of a broader issue. The simple answer is that Scooter’s has overextended itself and is struggling to rectify the situation. Essentially, the franchisee that owned and operated the locations at 3023 Barker Cypress Rd, Houston, TX 77084, and 8307 Jones Rd, Jersey Village, TX 77065, was unable to continue doing business and shut her doors last summer—according to a note left on the Jersey Village location, costs and interest rates had spiraled out of control. It’s not unheard of for a franchisee to drop out of a chain. Scooter’s response fell short of expectations. For the better part of a year, these two locations have essentially been left to rot in the sun. Usually, when a franchisee is in distress, the company attempts to persuade another franchisee to take over the locations. It’s not unheard of for the company to temporarily run the stores while searching for a new operator. What adds insult to injury is that Scooter’s is still working on new stores in other parts of Texas. Is Scooter’s headed for an immediate end to Houston operations? No, but if you compare location choices, number of stores, and planned developments, they’re certainly lacking against the competition.
