Global brands Starbucks and Costa Coffee are each closing a café in Sheffield city centre, which local business owners attribute to competition with independent coffee shops.
Costa Coffee will be replaced in Orchard Square with independent venue ‘Fargate Cafe’, as part of a move towards smaller, independent businesses.
The Starbucks branch in Fargate is now permanently closed after two decades in business.
A study by Metro Bank found that about 4 in 5 consumers feel more valued at local independent shops than at large chains, and around 18% of independent cafe visitors say atmosphere is their primary reason for visiting, compared to just 8% at branded chains.
Neil Midgley owner and founder of Motore Cafe said: “In short my opinion is Costa and Starbucks are offering an inferior product to independents at the same or even higher price.
“They are losing customers who aren’t discerning to Greggs and McDonalds who offer okay coffee for a cheaper price. And losing more discerning customers to specialty coffee shops who offer a superior product.”
As for Costa Coffee, brand Coco-Cola recently tried to sell the company, but have recently rescinded their decision to auction off its purchase and have confirmed they are retaining full ownership.
Neil said: “Added to this, Costa was overpriced when bought by Coca Cola who are now trying to offload it – so I assume closing less profitable stores.
“Starbucks seems to have been losing market share for years.”
In 2025, Starbucks closed 10 locations across the UK in October 2025 as part of a global restructuring plan, as well as cutting 900 jobs across the US.
Recent reviews for the two brands left positive feedback.
Costa Coffee customer, Ahamed Chowdhury said: “I had a large latte, great taste as usual. My mom asked for an extra cup and the girl on the till gave her, very kind act and good customer support.”
Starbucks customer Martin Taylor said: “Excellent double espresso in a porcelain cup. Really friendly staff.”
As for local, independent cafes Sheffield has around 120, with a new business opening every month.
All images credit Google images.