I don't own a shop (yet) and have not experienced what you are going through. But here's my $.02.
1. Don't panic.
2. Stop in at the "other coffeehouse" and observe it carefully. Try their coffee and pastries or whatever they are serving. Find out what the hub-bub is all about. Observe the customers and see if you can discerrn why there are going there instead of your place. However, don't try to match everything they are doing. It will come off as being superficial.
3. Like what the other poster had said, keep your focus on quality. Don't shortcut quality for speed of service, or cutting costs.
4. Customers (I am a professional customer :wink: ) like proper service. I once saw a barista at some coffeehouse set down a to-go cup of drip coffee, yelled out "drip coffee!", turn around and disappeared before the customer turned her head to look at the counter. It wasn't even busy (I was the only other customer there!) No eye contact, no smile, literally no service. And it was rude, rude, rude. Fact is, coffee is more of an experience including the product AND the service. If you and your baristas have time, chat with your customers if it looks to be an opportunity. Love the people who walk into your door. (but don't get all puppydog-like and slobber all over them :grin: )
5. Ask your baristas for input on more ideas.
wish you my best!
Gary