MORGAN STANLEY: These niche coffee chains could be the next Starbucks

Morgan Stanley on Wednesday said that Starbucks' stranglehold on the high-end coffee market is here to stay, despite some big names getting into the business.

"Given the increasing importance of super premium chains to the category, investors--both public and private--are paying closer attention," analyst John Glass said in a note.

"Many of the high profile artisanal 'Third Wave' coffee brands have yet to develop significant footprints relative to Starbucks, and most highlighted here are highly concentrated in the Northeast or the West Coast."

While they might not make a dent in Starbucks' business just yet, Morgan Stanley is still keeping tabs on them. Nestle, after all, paid $500 million for a majority stake in Blue Bottle Coffee, even though the chain only has 40 locations.

Here are some of the smaller coffee brands Morgan Stanley thinks could be making headlines soon:

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10 coffee chains predicted to be the next Starbucks
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10 coffee chains predicted to be the next Starbucks

Joe Coffee

Number of locations: 16

States: New York, Pennsylvania

Photo credit: Facebook

Colectivo Coffee Roasters

Number of locations: 17

States: Washington, Illinois

Kaldi's Coffee

Number of locations: 18

States: Missouri, Georgia

Thomas Hammer Coffee Roasters

Number of locations: 18

States: Washington, Idaho

Woods Coffee

Number of locations: 19

States: Washington

Gregorys Coffee

Number of locations: 26

States: New York, New Jersey

La Colombe Coffee Roasters

Number of locations: 26

States: New York, Pennsylvania, Illinois, Washington D.C.

Blue Bottle Coffee Company

Number of locations: 35

States: California, New York, Washington D.C.

Philz Coffee

Number of locations: 40

States: California, Washington D.C.

Black Rock Coffee Bar

Number of locations: 42

States: Oregon, Washington, Arizona, Idaho, California

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SEE ALSO: Starbucks is the clear winner as high-end coffee heats up

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