Coffee Franchise

Is It Too Late To Buy A Coffee Franchise?

BY BILL BRADLEY | October 17, 2012

The answer to the question, most certainly, may depend on your community demographic i.e. number of specialty coffee franchises and/or businesses in your desired location. It may even depend on your willingness to compete against the dominant Starbucks brand around the corner. Did you know Starbucks has almost 13,000 stores in the United States alone?

It is apparent, the coffee industry as of 2012, is highly competitive. Almost everywhere you look, whether its in a coffee shop or a fast food restaurant, a 7-Eleven, a donut shop or even a gas station, coffee is being sold to consumers. The good news is that 54% of Americans over the age of 18 drink coffee everyday.


Coffee Drinking Statistics:

  • Average price for cup of brewed coffee – $1.38
  • Total amount of cups of coffee (9 ounces) a coffee drinker consumes daily – 3.1 cups
  • Total average of money spent on coffee each year by coffee drinker – $164.71
  • Total number of U.S. daily coffee drinkers – 100 million
  • Total number of U.S. daily coffee drinkers who drink specialty beverages (lattes, cappuccinos, mochas, etc.) – 30 million
  • Total percentage of coffee drinkers who drink 13 or more cups of coffee each week – 24%
  • Total amount of yearly money spent on specialty coffee in the U.S. – $18 billion

Source: Live Sciene, Coffee 4 Dummies, Coffee Research
Date Verified: 7.31.2012

Are Coffee Franchises Recession-Resistant?

Despite rising coffee prices and a recession beginning in 2008, coffee sales continue to stay pretty stable. In fact, The State of the Coffee Service Industry Report in the 12-month period ending in July of 2011 found aggregate sales rebounded from a 10 percentage point decline in the prior two years by five points in 2011, driven by product price increases. The 2010/2011 report found an unprecedented 88 percent of operators raised prices in the 12-month period. So, there is no doubt the demand for coffee as compared to other food products in an economic downturn is quite consistent.

The National Coffee Association (NCA) annual coffee trends study also indicates coffee consumption held study during the recession. In 2011, the study found 40 percent of those 18 to 24 years old said they drink coffee daily, up from 31 percent in 2010 and on par with 2009’s 40 percent. For those 25 to 39 years old, 54 percent said they drink coffee daily, up from 44 percent in 2010 and ahead of 2009’s 53 percent.

Examining Today’s Coffee Entrepreneur

Coffee franchise owners, as a whole, are more professional, more sophisticated entrepreneurs than we have seen in the past. The mom and pop operators, for the most part, are a vision of the past. The new coffee entrepreneur is more in tune with his customer needs while displaying advanced delivery systems for a wide variety of coffee products that meet the tastes of the customer. Today’s coffee entrepreneur is ROI aware, making profitable choices when it comes to serving specialty coffees at least 15 hours everyday.

Coffee franchises offer proven business models including advanced delivery systems and an array of in demand coffee drinks that meet customer desires. They offer a complete package that includes an operating system, marketing programs and assistance with store location and design.

Preview some of our coffee franchise opportunities and complete the no-obligation form on the overview to receive more detailed information about owning a coffee franchise business.

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