Coffee break: Operators will continue expanding their menu options to appeal to health-conscious consumers

Over the five years to 2018, the Coffee and Snack Shops industry has been bolstered by the growth in the domestic economy. Increases in consumer spending, driven by higher disposable incomes and rising consumer confidence, coupled with the falling unemployment rate, has led to increased spending at industry locations. Over the five years to 2018, industry revenue is expected to increase. The industry has had to adapt to changing consumer preferences over the past five years, especially those relating to health and diet. Major operators, such as Starbucks and Dunkin' Donuts, are expected to expand their menus and remodel the designs of their locations over the five years to 2023 to increase sales and draw a wider range of customers...purchase to read more.

Industry Statistics & Market Size
Revenue
$49bn
Annual Growth 13-18
5.9%
Forecast Growth 18-23
Profit
Employment
773,559
Businesses
66,947

Industry Threats & Opportunities

  • The industry has experienced a boost by rebounds in consumer spending and confidence
  • Traditional snack shops are increasingly expanding their coffee offerings
  • Operators are expanding into markets that have not become oversaturated
  • Industry Report - Industry SWOT Analysis Chapter

    The Coffee and Snack Shops industry is in the mature phase of its lifecycle. Industry revenue has grown consistently during the past decade and has outpaced the broader food-service sector. However, in many regions, the industry has become saturated, leading large chains such as Starbucks to seek growth elsewhere, either overseas or through new product lines. In the 10 years to 2023, industry value added (IVA), which measures an industry’s contribution to GDP, is projected to grow at an annualized rate of 4.2%. During the same period, GDP is estimated to grow at an annualized rate of 2.2%, meaning the industry is growing at a slightly faster rate than the overall economy...purchase to read more.

    Additional Insights for the Coffee & Snack Shops Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Coffee & Snack Shops Industry are

  • Having a clear market position
  • Effective cost controls
  • Ability to franchise operations
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Healthy eating index in the Coffee & Snack Shops industry impact industry performance..

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    What's in this report

    What is the Coffee & Snack Shops Industry?

    This industry is composed of establishments that prepare or serve specialty snacks and nonalcoholic beverages including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies and sodas. Purchases may be consumed on site, taken to go or delivered.

    Industry Products
  • Food consumed in-store
  • Beverages consumed in-store
  • Food taken to-go
  • Beverages taken to-go
  • Food ordered via drive-thru
  • Beverage ordered via drive-thru
  • Industry Activities
  • Operating snack shops
  • Operating ice cream and soft-serve shops
  • Operating frozen yogurt shops
  • Operating donut shops
  • Operating bagel shops
  • Operating coffee shops
  • Operating cookie shops
  • Operating juice and smoothie shops
  • Operating pretzel shops
  • Operating cupcake shops
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Healthy eating index
  • Consumer Confidence Index
  • Per capita coffee consumption

  • Current Performance
  • Coffee price volatility
  • Third-wave coffee
  • New products, new markets
  • Strong enterprise growth expected to give way to consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Growth strategies
  • Competition to intensify
  • Industry structure
  • New regulation
  • Table: Coffee & Snack Shops Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Coffee & Snack Shops Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Beef & Pork Wholesaling
  • Coffee Production
  • Dairy Wholesaling
  • Egg & Poultry Wholesaling
  • Fish & Seafood Wholesaling
  • Frozen Food Wholesaling
  • Fruit & Vegetable Wholesaling

  • Products & Services
  • Beverages consumed in-store
  • Food consumed in-store
  • Food taken to-go
  • Beverage ordered via drive-thru
  • Beverages taken to-go
  • Food ordered via drive-thru
  • Other
  • Chart: Coffee & Snack Shops Industry Products and Services Segmentation

  • Demand Determinants
  • Income and expenditure
  • Demographics
  • Health and lifestyle

  • Major Markets
  • Highest quintile of incomes
  • Fourth quintile of incomes
  • Middle quintile of incomes
  • Second quintile of incomes
  • Lowest quintile of incomes
  • Business
  • Chart: Major Market Segmentation for the Coffee & Snack Shops Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Coffee & Snack Shops

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Coffee & Snack Shops Industry

  • Industry Globalization
    Starbucks Corporation, Dunkin' Brands Inc.,
  • Table: Starbucks Corporation - financial performance
  • Table: Dunkin' Brands Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Coffee & Snack Shops Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Coffee & Snack Shops Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer spending (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Baby Boomers
  • The demographic of Americans born between 1946 and 1964.
  • Barista
  • A person who prepares and serves espresso-based coffee drinks.
  • Espresso
  • Coffee brewed by forcing a small amount of nearly boiling water under pressure through finely ground coffee beans.
  • Food Service
  • The practice or business of making, transporting, and serving or dispensing prepared foods outside the home.
  • Franchise
  • A store that uses a well-known firm's business model, including their trademark and goods, for a fee. This is an alternative to chain stores, which share a brand and a central management.
  • Point Of Sale (Pos)
  • A system used at checkout in retail stores using computers and cash registers to capture transaction data at the time and place of sale.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Coffee & Snack Shops can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Coffee & Snack Shops:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Coffee & Snack Shops market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Coffee & Snack Shops, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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