Personalization's Grip on Coffee: How Far Will It Go?

Each week, an industry expert shares a lesson, insight, or trend they find important to help fellow coffee operators learn and grow faster.

The Return of the “Drink Hack”

I recall the early days when Instagram “drink hacks” went viral. In fact, some websites are devoted to archiving customized classics from the 2010s Starbucks era—think the cloyingly sweet “cotton candy frappuccino” and the home-remedy-inspired “medicine ball.”

For a brief period, it looked like widespread customization was losing its appeal; the specialty coffee movement gained momentum, and black coffee that highlighted the distinct qualities of the bean and its terroir—as we often explained to customers—was dominant. But the recent resurgence of customization has been striking.

7 Brew introduced a mobile ordering app in August. The company says customers can build over 20,000 drink combinations using the available coffees, drink bases, syrups, energy infusions, and cold foams.

In terms of sheer numbers, Starbucks leads with 170,000 baseline drinks as of 2023. Bloomberg analysts estimate the actual number of unique combinations at 383 billion, and a 2022 Starbucks report found that modifiers represented a $1 billion revenue line.

The chains capitalizing on this trend are experiencing remarkable growth, and as we’ve reported on our site, there are signs of growing interest in customization among younger consumers. In many ways, it appears customization has come out on top.

On the flip side, customization can be taken too far and become a burden on your staff. Last year, Starbucks reduced its menu by 30% and introduced a flat fee for stacking multiple modifiers to prevent baristas from being slowed down by overly complex orders.

Competing in a World of 170,000 Customizations

Most coffee shops allow a basic level of customization (add syrup, add cold foam, add an extra shot), but if you want to optimize for increased demand and margins on customizations, here are a few smart approaches I’ve observed:

• Promote the customization you already provide. When guests create drinks they love, that’s shareable content. Showcase their creations on social media and let people know they can get creative too.
• Set some limits. It’s sensible to establish boundaries, such as one cold foam or three syrups per drink. Without limits, you’ll occasionally receive extreme requests that disrupt baristas.
• Ensure the numbers add up. A flat fee for two or more modifiers, as Starbucks now does, helps offset the extra time involved. While you’re at it, review your modifier pricing to confirm profitability before featuring them heavily in marketing.
• Revive the secret menu. Turn your regulars’ favorite drinks into their own menu. An informal “secret menu” (off-menu drinks your team is allowed to make, name, and even enter into the POS as a dedicated button) can streamline customization while preserving a sense of fun.
• Confirm you truly want to do this. A small, focused menu might be the differentiator you’re looking for (see Corvus Coffee and Courier Coffee, both of which deliberately trimmed their menus and built their identity around that choice). Before you optimize for customization, make sure it’s something you genuinely want to pursue.