The coffee business is booming.
From Starbucks to old school cafes and independent coffee shops, we are currently living during a 30 year mega trend towards out-of-home coffee consumption.
If you’re new to the cafe or coffee shop industry and considering setting up shop, or a seasoned veteran, these statistics will help you improve your store's growth and profits, plan for the future, and ultimately run a more efficient operation.
In this post, we’re going to share 35+ cafe and coffee shop statistics every owner and manager should know to navigate the current environment and identify areas of opportunity in 2022 and beyond.
Let’s start digging in.
Coffee Industry Statistics
1. Over 2.25 billion cups of coffee are consumed each day.
2. The annual growth rate of global coffee consumption is 1.3%.
3. Coffee is the most widely consumed beverage on the planet, even more popular than tea, with more than 500 billion cups consumed each year.
4. Spending on coffee in the U.S. is expected to top $90 billion 2022, or around 0.4% of gross domestic product.
5. There are over 30,000 cafes and coffee shops in the United States.
6. Sales at specialty coffee shops are increasing by over 20% per annum, and now accounts for over 10% of the U.S. coffee shop market.
1. The average American spends $1,100 on coffee each year.
2. Average spending at coffee shops increases to an average of $2,750 for 25 to 34 year olds in the U.S., the highest of any demographic.
3. Specialty coffee drinkers consume on average 2.97 cups per day.
4. Millennials consume 44% of all coffee in the U.S.
5. Coffee is a daily habit for 40% of college students aged 18 to 24.
When thinking about the positioning and promotion of your cafe or coffee shop, take into account the demographic you want to target. If you choose the high spending 25 to 34 year old category you’ll need to take into account their discovery and ordering behaviors. For example, by considering your presence across digital channels.
Consumer Behavior Statistics
1. Peak weekday coffee consumption is 8:30 AM,
2. Peak weekend coffee consumption is around 9:45 AM.
3. 65% of all coffee is consumed during breakfast hours, 30% is consumed between meals, and the remaining 5% is consumed with other meals.
4. 43% of people drink coffee for the taste.
5. 26% of people drink coffee to give them an energy boost from caffeine.
6. 44% of U.S. coffee drinkers drink 2 to 3 cups per day
7. 6% of U.S. coffee drinkers drink more than 6 cups per day.
8. The average U.S. consumer includes 2 add-ons with their order.
9. Over 80% of coffee spending is for coffee consumed outside the home.
10. Coffee drinkers over the age of 65 years of age more frequently consume coffee at home, compared to under 35’s who drink coffee from coffee shops or other locations outside the home.
11. Total order amounts in coffee shops have been increasing. Offering ways for your customers to add-on to their coffee order is a good way to increase revenue potential.
Owners can increase revenue by encouraging customers to order additional espresso shots, add caramel syrups or use alternative milks such as almond or oat milk. The coffee business is all about finding repeat customers (and these are the best kind). A best-in-class loyalty program will always be important.
Ordering & Payment Statistics
1. Improving customer reviews on online platforms by half a point can boost cafe revenues by 5% to 9%.
2. During the COVID-19 pandemic coffee shops witnessed a more than 5,000% increase in pickup and delivery orders.
3. From 2% before COVID-19, over 25% of coffee shops are now cashless.
4. Over 30% of customers use an app to order their coffee.
The pandemic and changing consumer preferences and behaviors mean that it is essential for cafes and coffee shops to have an online ordering option for customers to easily order and pick up their coffee.
1. The average startup costs to launch a cafe or coffee shop in the U.S. is between $150,000 and $400,000.
2. Over 50% of independent coffee shops will fail in the first five years of business.
3. Labor costs are the biggest expense for cafes and coffee shops averaging from 20% to 35% as a percentage of total sales.
4. Over 50% of cafe and coffee shop owners and managers name staffing as a top challenge to success.
5. It can cost $2,000 to hire and train a new staff member.
6. It can cost up to $15,000 to hire and train a new manager.
It’s striking that employee turnover is at an all time high, especially when the cost of replacing employees is $2K for staff and $15K for a manager. Top owners and managers will spend time hiring and training the right employees, and putting in place the structure to keep them.
1. It is estimated that over 500,000 people are employed in the U.S food and beverage industry, which includes cafes and coffee shops.
2. The average hourly pay for a food and beverage worker in the U.S. is $10.45.
3. The average hourly pay for a barista in California is $12 before tips.
4. The average hourly pay for a shift manager is $14.
5. There are over 10,000 available openings for coffee baristas in the U.S.
There is a lot of talk of a labor shortage in the foodservice industry. Consider increasing the wages you offer in order to recruit more experienced baristas, and those that are good with customers. Remember, this is a repeat customer business where loyalty is important. And people can be very loyal to their barista.
Cafe and coffee shop owners, managers and operators must always be on the lookout for trends and developments in the industry. Both as a source of threats and opportunities. We believe industry statistics are a good place to start looking, and hope they are valuable to you.
I hope you’ve found something to put into action today!
Before you go...
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Note: The statistics presented here are U.S. centric but will provide an indication on the conditions in most other markets. I haven’t provided sources for each statistic as the links often expire. You can copy and paste the text into a Google search to find the source for each statistic.