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

Over the five years to 2017, the Coffee and Snack Shops industry has been buoyed by increased consumer spending, which was 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 of the foodservice sector, as consumers increasingly seek convenience at an affordable price. Major operators, such as Starbucks and Dunkin' Donuts, are expected to expand their menus over the five years to 2022 to increase sales and profit margins. This expansion includes more offerings of nontraditional, high-margin menu items, such as iced coffee drinks, breakfast items and wraps...read more.

Industry Statistics & Market Size
Revenue
$40bn
Annual Growth 12-17
3.7%
Forecast Growth 17-22
Profit
Employment
717,961
Businesses
76,960
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Industry Threats & Opportunities

  • The industry has experienced a boost by rebounds in consumer spending and confidence
  • Retailers have expanded the number of low-calorie options due to rising health consciousness
  • The industry’s high level of competition is expected to intensify over the next five years
  • Industry Report - Industry Key Buyers Chapter

    IBISWorld estimates that in 2017, the top four players in this industry account for 69.3% of the available market share, providing this industry with a high level of concentration. Given the diversity of snack and beverage styles, as well as industry operations, nearly 48.0% of establishments are small-business operators with nine or fewer employees, according to the US Census Bureau. An additional 52.0% of establishments employ between 10 and 99 staff members. There is also a small number of extremely large chain and franchised operators. For example, Starbucks and Dunkin' Brands make up more than 50.0% of industry market share, giving them considerable market power in determining industry trends and creating a formidable barrier for nonfranchised players...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 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
  • Coffee beverages
  • Other beverages
  • Food
  • 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
  • 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
  • Coffee beverages
  • Food
  • Other beverages
  • 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
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent and utilities
  • Other
  • 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 CorporationDunkin' 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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Consumer spending (2008-2022)

  • 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.
  • Why buy this report?

    IBISWorld’s Coffee & Snack Shops Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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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