Companies in this industry operate limited service restaurants that serve specialty snack items or nonalcoholic beverages for consumption on or near the premises. Major companies include Einstein Bros Bagels, FOCUS Brands (owner of Auntie Anne's, Carvel, Cinnabon, and Jamba Juice), Inspire Brands, Krispy Kreme Doughnuts, and Starbucks (all based in the US), along with Caffè Nero and Costa Coffee (UK), Duskin (Japan), and Tim Hortons (Canada).
Worldwide food service revenue, which includes revenue from specialty eateries, totaled about $3.5 trillion in 2020 and is expected to grow up to $4.2 trillion, according to PR Newswire. Among specialty eateries, coffee shops in particular are growing in countries such as China, India, Indonesia, and Vietnam.
The US specialty eatery industry includes about 63,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $39 billion.
Demand is driven by demographics, consumer tastes, and personal income. The profitability of individual companies depends on efficient operations and high volume sales. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering high-quality menu items and providing superior customer service. The industry is fragmented: the top 50 companies account for about 45% of revenue.
Specialty eateries compete with establishments offering snacks and other food items such as grocery stores, convenience stores, retail bakeries, and delis. In addition, specialty eateries compete with traditional fast-food and full service restaurants.
Products, Operations & Technology
Limited-service restaurants which includes coffee shops, doughnut shops, and ice cream shops account for about 40% of specialty eatery revenue; full-service
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms