AI's 'picks and shovels' boom has a caffeinated cousin: the rise of upmarket coffee chains. US chain Blank Street raised $75mn to expand into California, with UK revenue tripling in 2024. Speciality chain Watch House grew revenue 50% in the year to July 2025.

These premium players are displacing Starbucks, Caffè Nero, and Costa Coffee, whose footfall share has fallen over 10 percentage points in five years. Suppliers benefit too: De'Longhi's professional espresso machine business grew nearly 36% year-over-year. At home, Breville's coffee segment grew double digits, while Shark Ninja saw its coffee maker business surge 88% in the year to August.

French conglomerate Groupe SEB is betting on automatic bean-to-cup machines for growth. While AI chip valuations dwarf coffee markets, the centuries-old beverage business offers enduring stability.