Companies in this industry sell coffee drinks and other food and beverages for consumption on the premises or for takeout. Major companies include Peet’s Coffee, Starbucks, and The Coffee Bean & Tea Leaf (all based in the US), as well as Caffè Nero and Costa Coffee (both based in the UK).
The biggest US coffee chains operate stores abroad, primarily through licensing agreements. Starbucks owns and licenses about 32,000 locations worldwide. The world's largest coffee consumers include Finland, Norway. And Iceland among other countries, according to the World Population Review.
The US coffee shop industry includes more than 60,000 stores with combined annual sales of about $40 billion. Coffee shops are part of the specialty eatery industry, which also includes outlets specializing in products such as bagels, donuts, frozen yogurt, and ice cream.
Consumer taste and personal income drive demand. The profitability of individual companies depends on the ability to secure prime locations, drive store traffic, and deliver high-quality products. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering specialized products, serving a local market, or providing superior customer service.
Coffee shops compete with businesses such as convenience stores, gas stations, quick-service and fast-food restaurants, gourmet food shops, and donut shops. The US industry is fragmented: the eight largest companies account for about 30% of revenue.
Products, Operations & Technology
Major products include nonalcoholic beverages without table service, which accounts for about 30%, followed by meals, snacks, and other food items consumed
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms