U.S. Coffee Franchise Market Size Worth USD 13.96 Billion By 2025

April 19, 2018

The U.S. coffee franchise market is expected to reach USD 13.96 billion by 2025 as a result of increasing demand from consumers owing to the increased disposable income. Coffee is the most commonly consumed beverage in U.S. According to the Specialty Coffee Association of America. Coffee related economic activity consist of about 1.6% of the total U.S. GDP (gross domestic product). The facts published by National geographic states that more than 80% of American people drink coffee. The increasing demand for coffee consumption is expected to drive the U.S. coffee franchise market over the forecast period.

Furthermore, U.S. coffee franchise industry is competitive in nature as a result coffee franchisee are developing their identity through various different strategies to appeal the customers. Today customers are seeking for value addition and this have led to the evolution of coffee culture. For instance, Maui Wowi a Hawaii based company is all about its Aloha spirit and offer customers a loyalty program called ‘Surf Club”. Once customers enroll themselves they get various discounts, coupons, custom apparels, and other benefits. The franchisee Coffee Beanery follows a bolted approach with its focus on product quality as its culture. Its motto ‘coffee people who care’ and are transparent about their coffee production process detailed.

The coffee franchises have various revenue sources beyond coffee. They offer various food items such as smoothies, soufflé, breakfast and lunch items and others. Some also sell ground or whole coffee beans for consumption at home. For instance, Dunn Brothers along with coffee also offers Tea & chocolate, fruit smoothie, customized breakfast sandwich, acai bowl, belgian waffle breakfast sandwich, belgian waffle trio, oatmeal, sandwiches, wraps, salads and other. Thus, such wide variety of food options and its easy availability at coffee chains have resulted in the high revenue growth of these U.S. coffee franchisees over the past few years.

The increasing health awareness among the U.S. consumers is also expected to drive the U.S. coffee franchise market in future. The recent studies conducted on the effects of coffee are helping spread the health’s benefits which result with moderate consumption of coffee. Coffee naturally has more than 1000 complex botanical compounds in it. It also includes some strong antioxidants which is expected to result in following benefits mainly, prevents from lever disease, improves memory, increases athletic endurances, and reduces risk of type 2 diabetes. Thus, the U.S. dietary guidelines recently recommended coffee as a part of healthy lifestyle which is a major drive for the development and expansion of U.S. coffee franchise industry.

Moreover, the coffee franchises ambience has gained popularity over the past decade and has evolved significantly since then. Initially the décor and feel of U.S. coffee shops gained popularity among the Italian immigrants. The coffee chains today have developed modern and quirky styles and have retained the purpose of social interactions and gatherings. For instance, the classic rock coffee retains its laid back, take a nap and read a book type coffee shop. Another such coffee shop is the Rock n Joe coffee bar that position itself with a cool place for people who love music, quality food, and exceptional love for coffee and trendy environment. Thus, the innovative concepts are expected to drive the coffee franchise market in future.

The increasing concept of coffee on the go is gaining popularity in the U.S. Thus, people are seeking options to have coffee delivered to their home or workplaces. And thus, mobile franchise coffee business is expected to further drive the coffee franchise market in future.

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Hexa Research has segmented the U.S. coffee franchise market report based on product type and consumer age group:

Segmentation by product type, 2014 - 2024 (USD Billion)
    • Beverage
    • Food Products

Segmentation by consumer age group, 2014 - 2024 (USD Billion)
    • Above 40 years of age group
    • 18-39 years of age group
    • Below 18 years of age group

Key players analyzed:
    • Dunkin' Donuts
    • Scooter’s Coffee
    • Maui Wowi Hawaiian Coffees & Smoothies
    • Dunn Bros Coffee Franchising, Inc.

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