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          1. Coffee Shops Industry Profile

            Report Page Length: 10-12
            Last Quarterly Update: 8/4/2020
            SIC Codes: 5812
            NAICS Codes: 722515
            Chapters Include:
            Industry Overview Trends & Challenges Industry Forecast
            Quarterly Industry Update Call Prep Questions Website & Media Links
            Business Challenges Financial Information Glossary & Acronyms
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            Excerpt from Coffee Shops Industry Profile

            Companies in this industry sell coffee drinks and other food and beverages for consumption on the premises or for takeout. Major companies include International Coffee & Tea (The Coffee Bean & Tea Leaf), Peet's Coffee, and Starbucks (all based in the US), as well as Costa Coffee and Caffè Nero (both based in the UK).

            The biggest US coffee chains operate stores abroad, primarily through licensing agreements. Starbucks owns and licenses about 30,000 locations in about 78 global markets. The world's largest coffee consumers include the US, Brazil, Germany, and Japan.

            The US coffee shop industry includes more than 35,500 stores with combined annual sales of about $45 billion, according to Allegra World Coffee Portal. 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.

            COMPETITIVE LANDSCAPE

            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 concentrated: the eight largest companies account for about 70% of revenue.

             
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