Date:12/31/2012

market power in determining industry trends and also creates a formidable barrier for non-franchised players. Given the diversity of snack and beverage styles and industry operations, it is not surprising that nearly 48.0% of establishments are small-business operators with nine or fewer employees. Over time, the industry's concentration has been increasing. The recent increase in acquisitions indicates that companies are making a concerted effort to increase profitability by claiming larger portions of market share.
To combat slumping sales, major operators like Starbucks and Dunkin' Donuts are anticipated to expand their menus over the next five years and increase their offerings of nontraditional, high-margin menu items like iced coffee drinks, breakfast items and healthy wraps. These additions are expected to aid these companies in their turnaround. Many major chains are also investing in international growth as part of a long-term strategy. Larger players view China, in particular, as a market with huge potential for growth and long-term profitability. Over the five years to 2017, revenue is forecast to grow. For more information, visit IBISWorld’s Coffee and Snack Shops in the US industry report page.

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IBISWorld industry Report Key Topics

This industry is composed of establishments that prepare or serve specialty snacks and nonalcoholic beverages, including ice cream, frozen yogurt, cookies, donuts, bagels, coffee, juices, smoothies or sodas.
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