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-premises, such as bagel shops, coffee shops, doughnut shops, ice cream parlors, juice bars, and smoothie shops. Major companies include Dunkin’ Brands, Einstein Noah Restaurant Group, FOCUS Brands (owner of Auntie Anne's, Carvel, Cinnabon, and Jamba Juice), Krispy Kreme Doughnuts, and Starbucks (all US-based), along with Caffe Nero and Costa Coffee (UK), Duskin (Japan), and Tim Hortons (Canada).
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 45% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Coffee shops account for about 45% of specialty eatery revenue; doughnut shops account for about 15%, as do ice cream shops and other frozen treat outlets. The industry also includes establishments specializing in snack items such as bagels, cookies, popcorn, and pretzels, and beverages such as juice drinks and smoothies.
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