When we moved to our former house in the Tradition neighborhood of Port St. Lucie, Fla., we had two Starbucks, two Dunkin’s, and two local coffeehouses within a few miles of our house. A few years later, when we moved away, we still had two Starbucks, but the local, independent chains had both closed.
In their place, we added 7 Brew, Cali Coffee, Carmela (a regional chain), Vicky Bakery (a popular Cuban cafe chain), another Dunkin’, and a new independent coffee place.
It’s a staggering amount of competition in a fast-growing section of the city that’s only a few square miles. All of those added competitors come at a time when the overall market has been growing, but seems to have hit a wall.
“The Coffee and Snack Shops industry has experienced a wave of growth, emerging as a standout performer in the food service sector. It boasts an annualized growth rate of 2.5%, shooting revenues up to $75.5 billion over the five years to 2026,” according to IBISWorld’s Coffee & Snack Shops in the US Industry Data and Analysis.
Nationally, Americans also have more places to get their daily cup.
“The number of chain coffee stores in the U.S. jumped 19% to more than 34,500 over the last six years, according to Technomic, a consulting firm that researches the foodservice industry,” the Associated Press reported.
Current market conditions, however, seem to have worsened as American consumers have tightened their spending.
“This includes an expected 0.2% decline in 2026 alone as the Middle East conflicts have driven up crude oil prices, deterring customers from frequenting coffee and snack shops. As a result, profit is expected to fall as soaring operational costs eat up profitability,” IBISWorld showed.
It’s a situation that has led to Starbucks and Peet’s both closing underperforming locations, while a number of smaller chains and independent operators have shrunk or even closed down. Now, one high-end player in the space, Chenin LLC, which operates a Washington-area L’Experience Paris cafe, has filed for Chapter 11 bankruptcy.
Chenin LLC files Chapter 11 bankruptcy
Chenin LLC, the parent company of Bellevue bakery L’Experience Paris, filed for Chapter 11 bankruptcy protection Aug. 31 in the U.S. Bankruptcy Court for the Western District of Washington.
The cafe/restaurant remains open, and its owners plan to use the filing to reorganize the company’s finances while remaining open.
L’Experience Paris uses a cafe/restaurant model that’s different from a traditional coffeehouse.
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“An experience, not merely a meal. In Paris, one does not queue for breakfast — one sits, and the café comes to you. Since 2018, we have kept that ritual on the Eastside: flour milled in France, butter churned in Normandy, and a table that is yours for as long as you care to linger. And when the day won’t wait, our counter sends you off with a baguette or box of pastries — Paris, à emporter,” the company explained on its website.
Although the overall company operates four locations in Washington state, the Chapter 11 filing only covers one Bellevue location.
Owner Julien Hervet told Puget Sound Business Journal that “Chenin was historically kept separate from the corporate structure governing the company’s other locations and that the bankruptcy filing is intended to bring the Bellevue entity in line with the broader organization.”
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Coffee shops are feeling the pinch
While the number of coffeehouses has grown nationwide, consumers have been pulling back on discretionary spending, and the price of coffee beans has gone up.
“The arabica coffee contract run by ICE Futures U.S., which acts as a global benchmark for pricing coffee, hit a six-month high in July above $3.5 per lb. It has stayed close to that level despite market expectations of a substantial surplus in the 2026/27 season,” Reuters reported.
Other costs are rising as well, Black Rock Coffee noted in its annual report, and these can’t always be passed on to customers.
“We may not choose to increase prices in order to pass future increased labor or commodity costs on to guests, in which case our margins would be negatively affected. If we do not increase prices to cover increased labor or commodity costs, or if such increase is delayed, the higher prices could result in lower sales, which may also reduce margins,” the company shared.
Coffeehouses have also seen changes in customer behavior.
“Consumers visited burger and coffee chains less often and purchased fewer items per visit. Yet, spending per unit increased year over year, as restaurants have continued to increase prices in part to offset rising costs from commodity pressures and tariffs,” according to McKinsey’s What US Consumers Want from Restaurants in 2026.
RTM Nexis CEO Dominick Miserandino thinks the coffeehouse space has become so crowded that some players will inevitably fail.
“Coffee has become one of the most competitive parts of foodservice because the same customer may buy it five days a week, and every operator wants a piece of that habit. The problem is that good locations are expensive, labor is expensive and consumers usually have several alternatives within a few blocks,” he told TheStreet.
The major challenge facing coffeehouse chains isn’t getting customers to try a new brand.
“A new brand can draw a crowd when it opens. The real test is whether customers walk past three other coffee shops to come back,” he added.
Chenin LLC, L’Experience Paris Chapter 11 bankruptcty facts
- Debtor: Chenin LLC
- Case No.: 2:26-bk-12825-CMA
- Court: U.S. Bankruptcy Court for the Western District of Washington
- Judge: Christopher M. Alston
- Filing Date: Aug. 31, 2026
- Industry: Restaurants and Other Eating Places
- Estimated Assets: $100,001 to $1 million
- Estimated Liabilities: $100,001 to $1 million
- Creditors: 1–49
- Counsel: Andrew R. Escobar, Seyfarth Shaw LLP
- Sources: PacerMonitor, BKAlerts, BankruptcyObserver