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Coffee Shops in Downtown Phoenix Navigating Growth, Competition, and Policy Hurdles

PHOENIX. – In the heart of Downtown Phoenix, coffee shops are booming with cafes on every corner. Independent coffee shops are more than just places to get a cup of coffee, they’re becoming community hubs that show how the city is growing and changing.

The growth comes from a mix of new residents wanting to get their work done, and students moving in and looking for a spot to study. People want to go to coffee shops that do more than just serve drinks, they also want a spot to meet, work, be creative and connect with others.

According to Patch, “Coffee is an essential for 63% of Americans every morning according to the National Coffee Association.”

Phoenix’s growth has opened up many opportunities, but local government policies play a pivotal role on how coffee shops operate. Rules like zoning, permits and economic plans can make it easier or harder for small businesses to thrive.

According to AZCentral, “The changing tapestry of downtown Phoenix mirrors the growth of the city as a whole, which has added population faster than almost any other large U.S city in the past decade.”

However some business owners feel that the city’s support doesn't always help. Hannah Osborn, who has been  the general manager at Day Dreamer Coffee since Dec 2024, talks about the difficulties of being able to obtain a liquor license.

“With a coffee shop, I feel like we're always going to kind of be okay, because people are always going to want to get coffee,” said Osborn. “But it made it harder for us to expand our program, because we wanted to build a bar program, and legislation was changing on what defines a restaurant to be able to have a liquor license.”

Dusty Cortes, who has been a barista at Dialog for two months, talked about how even with competition the local coffee community still supports one another.

“The coffee community is really tight knit here,” said Cortes. “We'll be in competition as in, yeah, we're all trying to get to the same customer base, but we're never gonna actively try to tell people like, oh, come to us instead of them.”

Cortes also argued about how the city talks about supporting small businesses but rarely follows through.

“They're not really helping us at all. They're not making it harder, but there's like nothing that can really be done to help us,” said Cortes. “I think they kind of just don't care enough to support small businesses like they say they will, but they're not gonna show up and actually do it.”

Kaitlyn Reed, a long time resident and ASU student, emphasized the importance and significance of having coffee shops in our community.

“It provides a nice spot for the local community to go to for just hanging out with friends, getting refreshments or food or going to some place to study and relax for a bit,” said Reed.

There are at least 20 independently owned coffee shops in Downtown Phoenix, each having their own unique theme. These coffee shops bring a sense of comfort and community by offering a cozy atmosphere where people can come to study and do work, artists can show off their display and residents can gather for local events and can chat with baristas.

One way the city of Phoenix can assist small businesses is by simplifying permits and licensing with online portals. Another way would be for the city to launch marketing campaigns to encourage residents to support local businesses like small shops and support nearby independent coffee shops. This can help shops grow and bring the community closer together.

Coffee shops are a staple in the community. Local government support helps with the growth and sustainability of small businesses and the local economy. With the support of local government, businesses are able to thrive and continue to bring the community together.


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