If you’ve tracked
how much money you spent at coffee shops in the past few years, there’s a good
chance it has gone up. The trend is reflected in rising same-store sales at
Starbucks (SBUX) (8 percent in 2013) and Dunkin’ Donuts (DNKN) (3.4 percent).
Even if you prefer a boutique coffee shop, it’s hard to deny that the “café
scene”—particularly in corporate incarnations—is thriving in the U.S.
In fact, sales
data from restaurant consultancy Technomic show cafés are the quickest-growing
segment in the fast-food sector, with sales up 9 percent last year. Unlike
other kinds of food, coffee has the advantage of being a daily ritual for many
people. “Cafés
continue, in quick service, to provide strong beverage and food options to
younger consumers,” said Darren Tristano, an executive vice president at
Technomic, in an e-mail. This includes both cafés that focus on beverages and
café-style bakeries such as Au Bon Pain.
The boom is being
driven by large chains. Of the country’s roughly 26,500 cafés, Starbucks
accounts for more than 11,400 of them, Dunkin’ more than 7,600 more, and both
are expanding. Only about 5,000 cafés in the U.S. are now run by independent
operators and small chains, defined as businesses with 30 or fewer units,
according to Technomic. While independent coffee shops are doing well—sales increased
6 percent last year—small chains saw sales drop 5.5 percent, according to the
data.
Additional genres
of fast food marking similarly robust growth are Asian- and noodle-focused
chains and purveyors of Mexican cuisine, both of which have benefited from a
growing consumer preference for slightly nicer fast-casual restaurants. Larger,
more established categories such as pizza and burgers experienced slower
growth, thanks in no small part to cafés and noodle joints stealing share “from
more traditional players,” said Tristano.
Here’s how the
different kinds of limited-service restaurants performed in 2013, according to
year-on-year sales data from Technomic (with leading chains cited as examples):
1. Cafés
(Starbucks, Dunkin’ Donuts) +9.0%
2. Bakery Cafés (Au Bon Pain) +9.0%
3. Asian/Noodles (Panda Express, Noodles &
Co. (NDLS), Manchu Wok) +8.5%
4. Mexican (Chipotle (CMG), Taco Bell (YUM))
+6.1%
5. Chicken (KFC, Boston Market) +4%
6. Sandwich (Arby’s (WEN), Subway,) +4%
7. Frozen Desserts (Ben & Jerry’s (UN),
Baskin-Robbins) +3.6%
8. Pizza (Domino’s (DPZ), Papa John’s (PZZA))
+2.3%
9. Burger (McDonald’s (MCD), Burger King
(BKW)) +1.5%
10. Family Casual (Golden Corral, Old Country
Buffet) -5.5%
By Venessa Wong /
Businessweek
<Questions>
1.
What is
your favorite Coffee Brand and why?
2.
Please
explain to us your favorite type of Coffee and which one do you prefer, hot or
iced?
3.
Do
you have any favorite beverage rather than coffee? If you do, what is it?
4.
According
to the article, Asian- and noodle-focused chains and purveyors of Mexican
cuisine are showed robust growth in the State, do you have any ideas or opinion
about this life style phenomenon?
5. Tell me about your favorite Fast food Brand with your personal reason.