Specialty Eateries

Specialty Eateries

Brief Excerpt from Industry Overview Chapter:

Companies in this industry operate limited service restaurants that serve specialty snack items or nonalcoholic beverages for consumption on or near the premises. Major companies include Einstein Bros Bagels, GoToFoods (owner of Auntie Anne's, Carvel, Cinnabon, and Jamba Juice), Inspire Brands, Krispy Kreme Inc., and Starbucks (all based in the US), along with Caffè Nero and Costa Coffee (both based in the UK), Duskin (Japan), 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 40% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Special eateries which include meals, snacks, and other food items account for about 50% of specialty eatery revenue; nonalcoholic beverages, prepared and dispensed account for about 15% of the revenue. Other sectors include food service contractors, caterers, cafeterias, and snack and nonalcoholic beverage bars. The industry also includes establishments specializing in snack items such as bagels, cookies, popcorn, and pretzels, and beverages such as juice drinks and smoothies.