Coffee Shops

Coffee Shops

Brief Excerpt from Industry Overview Chapter:

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

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include nonalcoholic beverages without table service, which accounts for about 30%, followed by meals, snacks, and other food items consumed on the premises (about 25%). Other products include nonalcoholic beverages consumed on the premises (about 20%) and served via drive throughs (about 20%), and food served via drive through (15%).