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Coffee Shops Report Summary

SIC Codes: 5812
NAICS Codes: 722515

Chapters Include

  • Industry Overview
  • Quarterly Industry Update
  • Business Challenges
  • Trends and Opportunities
  • Call Preparation Questions
  • Financial Information
  • Industry Forecast
  • Website and Media Links
  • Glossary of Acronyms
 

Coffee Shops Industry Overview

Excerpt from Coffee Shops Report

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 & Tea, and Starbucks (all based in the US), as well as Costa (part of hospitality firm Whitbread) and Caffè Nero (both based in the UK).

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. The US industry is concentrated: the top 50 companies generate more than 70 percent of sales.

Products, Operations & Technology

Beverages typically sold by coffee shops include brewed coffee and tea; espresso drinks (cappuccinos, café lattes); cold blended beverages; bottled water; soft drinks; and juices. Food includes pastries, bakery items, desserts, sandwiches, and candy. Many coffee shops sell whole or ground coffee beans for home consumption. Some coffee shops sell coffee or espresso-making equipment, grinders, mugs, and other accessories. Most coffee shops serve high-quality, premium coffee known as specialty coffee.

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