| SIC Codes: | 5812 |
| NAICS Codes: | 722515 |
The US specialty eatery industry includes more than 50,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $25 billion. Major companies include Dunkin' Brands (Baskin-Robbins and Dunkin Donuts), Krispy Kreme Doughnuts, and Starbucks. The industry is fragmented: the 50 largest firms generate about 45 percent of industry revenue.
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 labor-intensive: annual revenue per employee is about $50,000.
Coffee shops, which specialize in gourmet coffee, espresso drinks, and other beverages, account for about 40 percent of specialty eatery revenue. Donut shops make up about 20 percent of sales, and 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.