Industry Analysis & Industry Trends
Over the past five years, the Coffee and Snack Shops industry has been buoyed by increased consumer spending, driven by higher disposable incomes and greater confidence in the economic outlook. Demand for coffee and snack shops has increased at a faster rate than most segments in the foodservice sector, as consumers increasingly seek convenience at an affordable price. Additionally, the industry has adapted to changing consumer preferences, especially those relating to health and diet. Over the next five years, these trends are expected to continue bolstering demand. As a result, major chains will invest in expansion and international growth, strengthening industry revenue... purchase to read more
Industry Report - Industry Investment Chapter
The Coffee and Snack Shops industry has a medium level of capital intensity, and in 2016, IBISWorld estimates that for every $1.00 spent on wages, industry operators will spend $0.14 on the use and replacement of capital.
The industry relies heavily on labor because of the need for personal, face-to-face service and labor input in all areas of operation, including order taking, serving, food and beverage preparation, acceptance of deliveries, cleaning and management. The industry's overall spend on labor is relatively low as most positions within coffee and snack shops require little training or skills and can be undertaken by students or other low-skilled workers... purchase to read more