Specialty Eateries Industry Overview

Excerpt from Specialty Eateries Report

Companies in this industry operate limited service restaurants that serve specialty snack items or nonalcoholic beverages for consumption on-premises, such as bagel shops, coffee shops, doughnut shops, ice cream parlors, juice bars, and smoothie shops. Major companies include Dunkin’ Brands, Einstein Noah Restaurants, Krispy Kreme Doughnuts, and Starbucks (all US-based), along with Costa Coffee (UK) and Tim Hortons (Canada).

Competitive Landscape

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 percent of revenue.

Products, Operations & Technology

Coffee shops, which specialize in gourmet coffee, espresso drinks, and other beverages, account for about 40 percent of specialty eatery revenue; doughnut shops account for about 20 percent. Ice cream shops and other frozen treat outlets account for about 15 percent. The industry also includes establishments specializing in snack items such as bagels, cookies, popcorn, and pretzels, and beverages such as juice and smoothies.