Coffee is an essential part of many Americans' morning routines. This bean-based beverage comes in many forms. Here's a closer look at three thriving coffee companies and how each has carved a unique niche in the java business.

Starbucks: Global appeal and convenience

From a single specialty coffee shop in 1971 to a dynasty of more than 32,000 stores worldwide, Starbucks (SBUX 1.00%) has grown into the world's most dominant coffee purveyor. As of 2020, the company accounted for 40% of all coffee shops in the U.S. Why has Starbucks been so dominant?

Starbucks CEO Howard Schultz has, no doubt, been critical to the company's success. Inspired by espresso bars in Milan, where he traveled for a trade show in 1983, Schultz brought barista culture back to the states and reimagined how Americans drink coffee. This "coffeehouse" concept was integrated into the company's operations, and Starbucks locations became known for being welcoming hangouts and gathering places. Starbucks' success rests in good part on this familiar customer experience. And the brand's unmatched loyalty across the globe proves it.

Other factors have played into Starbucks' prominence, too, such as choosing strategic locations in high-traffic areas. Combined with exceptional brand recognition, the selection of prime locations enabled Starbucks to quickly amass local customers at each new store. Starbucks has also prided itself on taking good care of its employees although that's been challenged more recently as some workers seek to unionize.

Currently, Starbucks is struggling with inflation -- specifically its effect on customers, who might opt for a cheaper cup of joe amid rising prices. Another, perhaps longer-term, headwind for the java giant is the pandemic's effect on the American work landscape. With remote work now a more permanent option for many, Starbucks has adapted well, focusing on digital orders in less urban areas.

Keurig: Diversification is refreshing

Keurig Dr Pepper (KDP 1.83%) takes a completely different approach to coffee. Instead of purveying its coffee in stores, this beverage company sells single-service coffee makers and little coffee pods (K-Cups) that people use to make a cup themselves. It also sells bottled drinks, including Snapple, Clamato, Yoo-hoo, and an assortment of soft drinks, including 7Up and Dr Pepper.

Unlike Starbucks, Keurig's products are less susceptible to customers trading down for cheaper products, and offering a diverse line of products has kept sales consistent.Keurig's K-Cups were a boon to the company during the pandemic, seeing a spike in sales from stuck-at-home coffee drinkers. As a result, Keurig sailed through the pandemic swimmingly and continued to grow. In 2021, the company pulled in $12.68 billion, an increase of 9.2% over 2020 sales.

The company faces industrywide headwinds such as supply chain disruptions. Other challenges for Keurig Dr Pepper include higher transportation and labor costs, as well as increased prices of commodities like steel and aluminum. Despite higher operating costs, consumers remain thirsty for Keurig Dr Pepper's products, and it shows promise as a long-term investment.

Dutch Bros: Piping hot growth

An up-and-comer in the coffee scene, drive-thru chain Dutch Bros (BROS -0.97%) has actually been around for 30 years. Though launched in 1992, Dutch Bros has only recently hit a period of exponential growth, with roughly half of its nearly 600-plus locations opening in the past five years. Dutch Bros is now the fourth-largest coffee chain in the U.S. behind Starbucks, Dunkin', and Tim Hortons.

What is this rapid growth attributed to? One strength Dutch Bros has shown is its low turnover rate among employees. An often overlooked component of a retail business's growth is staffing, and Dutch Bros CEO Joth Ricci is well aware of this. As he explained during the company's second quarter earnings call in May, "Hiring has been brisk, and turnover remains low. This is a key part of our story as we will always strive to provide great work quality, compensation and advancement opportunities for our Broistas."

And Dutch Bros has some ambitious growth numbers indeed, with plans to open 4,000 stores nationwide over the next 10 to 15 years. In order to get there, however, Dutch Bros will have to endure some growing pains, along with escalating operational costs and rising minimum wages.

On the bright side, the company reassured investors that it's on track to hit at least $715 million in sales this year, which would mark a 44% year-over-year increase. If Dutch Bros can deliver on its growth objectives, this Oregon-based trailblazer could carve out significantly more of the $35 billion U.S. coffee shop market.