The industry is extremely labor-intensive: average annual revenue per worker is $40,000.Ĭoffee shops depend greatly on customer traffic and are most often located in areas with convenient access for pedestrians or drivers. Small companies can compete effectively by offering specialized products, serving a local market, or providing a personal level of customer service. Large companies have advantages in purchasing, finance, and marketing. The profitability of individual companies depends on the ability to secure prime locations, drive store traffic, and deliver high quality products. 1.3 Overview of Industry Profitability FactorsĬonsumer taste and personal income drive demand. Larger companies may also sell coffee beans wholesale to commercial customers, such as grocery stores and restaurants. While baby boomers have driven the success of coffee shops, specialty coffee appeals to a diverse adult demographic, including college students and young adults. The typical and most committed coffee drinkers are 25 to 45 year old, affluent, educated adults.
Most coffee shops serve high-quality, premium coffee known as specialty coffee. Some coffee shops sell coffee or espresso-making equipment, grinders, mugs, and other accessories.
Many coffee shops sell whole or ground coffee beans for home consumption. Food products include pastries, bakery items, desserts, sandwiches, and candy. Beverages include brewed coffee and tea espresso drinks (cappuccinos, cafe lattes) cold blended beverages bottled water soft drinks and juices. Major products sold by coffee shops include beverages as well as complimentary food items. Per capita consumption is highest in the Central U.S., where coffee drinkers average 3.7 cups per day. With the exception of Hawaii and Puerto Rico, the United States’ climate cannot support coffee trees.Ĭoffee consumption is highest in the Northeast, where over 60 percent of the population consumed coffee daily in 2005, according to the National Coffee Association (NCA). is the world’s largest importer of green coffee beans and the largest consumer of coffee. Many grower countries are small, poor developing nations that depend on coffee to sustain local economies. The top green coffee producing countries are Brazil, Colombia, and Vietnam. The industry is highly concentrated at the top and fragmented at the bottom: the top 50 companies have over 70 percent of industry sales.Ĭoffee is one of the world’s largest commodities. Major companies include Starbucks, Dunkin’ Donuts, Caribou, Coffee Bean and Tea Leaf, and Diedrich (Gloria Jean’s). includes 20,000 stores with combined annual revenue of about $11 billion. Definition of Industry 1.1 General Overview of the Industry Factors in favor of an unattractive industryĨ. Factors in favor of an attractive industryħ.2. Key factors that determine success in the futureĦ.1 Product and Service Innovation in the Futureħ.1. Competitive positions & possible strategic moves of key companiesĦ.
Driving Factors that are causing the industry’s structure to changeĥ. Competitive Forces that impact competition (Porter Model)ģ.1 Competition within the Coffee Shop IndustryĤ. Industry’s dominant economic traits – overviewģ. 1.3 Overview of Industry Profitability FactorsĢ.
0 kommentar(er)
