Overview

Coffee break: Operators will add high-margin items to appeal to health-conscious consumers

IBISWorld’s Coffee & Snack Shops market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Operators are expanding their offerings of nontraditional, high-margin menu items
  • One of the fastest-growing segments has been independent coffee shops
  • Most chains will introduce healthy alternatives and expand their product lines

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    Industry Analysis & Industry Trends

    Over the past five years, 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 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...

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    Industry Report - Starting a New Business Chapter

    Barriers to entry are low in this industry, given that an operator can lease premises, equipment, furniture and fittings, which lowers the initial capital costs, outlays and borrowings for the industry. The industry's two biggest players, Starbucks and Dunkin' Donuts dominate aspects of the coffee shop segment of the industry and have a large impact on product developments, however, in other market segments they have limited influence. The industry is on the whole highly fragmented and small-business orientated.

    Franchise agreements

    Entry to the industry can also occur through signing a franchise agreement, which includes outfitting and equipment, as well as training and computer systems. Fra..

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    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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    Look under the hood?

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    Starbucks CorporationDunkin' Brands Inc.
  • Table: Starbucks Corporation - financial performance
  • Table: Dunkin' Brands Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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 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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