Coffee Shop Industry Statistics and Trends
Over 20,000 coffee shop businesses exist in the United States with an average combined annual revenue of $10 billion. The follow coffee shop industry statistics are outlined below outlining the coffee shop marketplace and average consumer demographic.
Coffee Shop Market
1. 70% of sales are generated from the top 50 coffee shop operators.
2. Local coffee shop owners must compete with the top national brands to include Starbucks, Seattle’s Best, and Peet’s Coffee.
3. The international business for these chains offer growth opportunities such as Starbucks owning 5,500 international coffee shop locations.
4. Majority of coffee shop owners offer franchises as a means of growing their business.
5. The gross margin for a coffee shop is 85%.
6. Operating income for a coffee shop can average 2.5% of net sales.
7. The average coffee shop worker can generate $50,000 in annual revenue.
8. Total Startup costs: $20,000 – $40,000
9. By 2021, the industry is expected to reach $46.2 billion.
Average Coffee Shop Start-Up Costs
Coffee Cart: Average costs between $20,000 to $25,000.
Kiosk: Depending upon the size and menu average costs can be $25,000-$75,000.
Drive Thru: Can open small units for less than $35,000 with a large drive thru costing anywhere between $80,000 to $200,000.
Costs of Coffee Bar: The average cost of a 1,200 square foot coffee bar is $200,000 to $375,000.
How to Run a Coffee Shop
The following video takes a look at the day to day operations of running a coffee shop with expected future industry trends.
1. Sales of coffee are dominated by hot beverages at 83.3% of the marketplace.
2. 37% of total coffee consumers is classified as gourmet.
3. Success seen with selling instant serving packs.
4. Average price of coffee has increased 25% in the last 5 years due to rising commodity prices.
Retail Sales for Company Operated Stores
The following breakdown of retail sales for company operated stores are as follows.
– Beverages: 75%
– Food: 19%
– Whole Bean and Soluble Coffees: 4%
– Coffee Making Equipment and Other Merchandise: 2%
Marketing Trends for Coffee Shops
1. Offer unique products such as specialized roasts, local ingredients, locally themed and named drinks.
2. Leave out games, puzzles, and mind benders to encourage customers to linger around over coffee.
3. Host or sponsor local entertainment, readings, or book clubs events.
4. Use technology to increase visibility to your local community.
5. Have knowledge baristas and train them with online services such as the American Coffee & Barista School.
6. Develop fun and interesting customer loyalty programs.
7. Sell coffee related items.
Worldwide Coffee Trends
The following statistics take a look at the coffee industry on a global level.
1. Germany is the second largest consumer of coffee in terms of volume at 16 pounds per person.
2. 53 countries grow coffee worldwide.
3. An acre of coffee trees can produce 10,000 pounds of coffee cherries.
4. With the exception of Hawaii and Puerto Rico, no coffee is grown in the United States.
5. Up until the 1870’s most coffee was roasted at home in a frying pan over a charcoal fire.
6. 7 million tons of green beans are produced worldwide, most of which are handpicked.
7. The worlds largest coffee producer is Brazil, followed by Colombia.