Meridian Coffee Co. will close 40 drive-thru sites over the next year. It plans to open 25 small walk-in shops in city districts.

The chain announced the shift in a trading update. It said morning drive-thru traffic has fallen while afternoon walk-in sales keep growing.

A different kind of shop

The new shops will be about 70 square metres (750 square feet). That is roughly half the size of a typical Meridian site. Each will seat around 20 people.

The menu will lean on filter coffee, espresso and a short food list. Cold drinks stay, but the sweet seasonal range shrinks.

What analysts say

Retail analysts say the move reflects wider habits. More people work from home two or three days a week. They buy coffee near home, not on the commute.

Rents also matter. Drive-thru sites need large plots. Small units in side streets cost far less per square metre.

The first three shops open in the spring. Meridian has not named the cities.