Table of Contents
- Scope and Themes
- What you need to know
- Definition
- Data sources
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- The challenge of a recession
- Starbucks drags down overall sales, but broader picture not bright either
- Value pricing will dictate the near future
- Competition growing for the coffee and snack or meal
- 18-34 year olds are an essential demographic
- Social Networking (SN): A free brand propulsion tool
- Innovation driven by value and variety
- Advertising and promotional activity
- Coffee and coffee drinks usage
- Coffeehouse and donut shop usage
- Coffee and coffee drink spending trends and rationales
- Coffeehouse and donut shop drinks drunk most often
- How coffeehouses are used
- What coffeehouse patrons would like to see more of
- Competitive Context
- Key points
- Consumers walk out on coffeehouses
- Takeaway
- The bottom line
- Figure 3: Coffeehouse and donut shop coffee-spending rationales,
February 2009
- Figure 4: Coffeehouse and donut shop coffee-spending trends, February
2009
- The economic challenge
- Value-driven solutions
- QSR specter looms large; McDonald' s McCafé a game changer
- No one wants to deal with an 800-pound gorilla
- Broader value proposition
- Breakfast pressure
- Extended hours
- Variety
- Fast casual restaurants compete on healthfulness and brand cachet
- For healthier options...
- For sampling...
- Work and office: A blending of the "second" and "third" spaces
- Takeaway
- Workers rely more on office coffee service
- Market Size and Forecast
- Key points
- An unfortunate truth: negative sales estimated for 2009
- Starbucks drags down overall sales
- But broader picture not bright either
- Value pricing will dictate the near future
- Figure 5: U.S. systemwide sales of coffeehouses and donut shops, 2006
and 2008
- Figure 6: U.S. systemwide sales of top coffeehouses and donut shops, at
current prices, 2005-11*
- Figure 7: U.S. systemwide sales of top coffeehouses and donut shops, at
inflation-adjusted prices, 2005-11*
- Segment Performance
- Key points
- Coffeehouses
- Figure 8: U.S. retail coffeehouse sales at top three chains, 2006 and
2008
- Figure 9: U.S. retail coffeehouse units at top three chains, 2006 and
2008
- Figure 10: U.S. retail coffeehouse sales per unit, top three chains,
2006 and 2008
- Donut shops
- Figure 11: U.S. retail donut shop sales at top three chains, 2006 and
2008
- Figure 12: U.S. retail donut shop units at top three chains, 2006 and
2008
- Figure 13: U.S. retail donut shop sales per unit, top three chains, 2006
and 2008
- Market Drivers
- Key points
- Recession hits restaurant industry
- Figure 14: Restaurant Performance Index, current situation, and
expectations, November 2007-February 2009
- Figure 15: Coffeehouse and donut shop coffee-spending trends, February
2009
- Consumer confidence undermines willingness to spend at restaurants
- Figure 16: Consumer sentiment index, 2001-08
- Is that light at the end of the tunnel?
- 18-34 year olds: A force to be reckoned with
- Figure 17: Population aged 18 or older, 2004-14
- Restaurant Analysis
- Key points
- Starbucks navigates a (very) rough patch
- Current struggles
- Plan for the future
- Breathing life into the brand
- What' s on the menu
- Core demographic profile remains steady
- Figure 18: Starbucks demographic profile, 2007 and 2008
- Dunkin' Donuts
- Store format innovation
- Going retro
- What' s on the menu
- The demographic connection
- Figure 19: Dunkin' Donuts demographic profile, 2007 and 2008
- Tim Hortons
- The basics
- Growth through expansion
- On the menu
- Tully' s
- Analysis: The Independent Coffeehouse
- Intelligentsia continues to ride the "Third Wave"
- Bridgeport Coffee Company: A true neighborhood independent
- Restaurant Brand Qualities
- Key points
- Social networking as a brand propulsion tool
- Figure 20: Viral marketing on social networking sites, October 2008
- Dunkin' Donuts
- Starbucks
- Innovation and Innovators
- Key points
- Spinning value
- Rewarding the regulars
- Cross-pollinating beverages
- Starbucks works to shed its "evil of excess" image
- Healthy menu choices arrive
- Advertising and Promotion
- Key points
- Everybody loves to pick on Starbucks
- PJs: Starbucks isn' t local
- Figure 21: PJs local positioning, 2009
- Figure 22: PJs: roasted locally, 2009
- Dunkin' Donuts: Highlighting bargains
- Figure 23: Dunkin' Donuts value breakfast, 2009
- Figure 24: Dunkin' Donuts: Dunkin' Deals, 2009
- Figure 25: Dunkin' Donuts LTO, 2009
- Starbucks: "Do-gooders"
- Figure 26: Starbucks: "What if?," 2008
- Figure 27: Starbucks: "What if?" Africa, 2009
- Figure 28: Starbucks, volunteering, 2009
- Coffee and Coffee Drinks Usage
- Key points
- Bring more than coffee to the table to target 18-34 year olds
- Figure 29: Coffee and coffee drink usage, by selected demographics,
February 2009
- Coffeehouse and Donut Shop Usage
- Key points
- Purchased drinks
- Figure 30: Purchased drinks at coffeehouses and donut shops in past
month, by age, February 2009
- Figure 31: Mean purchases of drinks at coffeehouses and donut shops in
past month, by age, February 2009
- Figure 32: Purchased drinks at coffeehouses and donut shops in past
month, by household income, February 2009
- Figure 33: Mean purchase of drinks at coffeehouses and donut shops in
past month, by household income, February 2009
- Purchased food
- Figure 34: Purchased food at coffeehouses and donut shops in past month,
by age, February 2009
- Figure 35: Mean purchase of food at coffeehouses and donut shops in past
month, by age, February 2009
- Figure 36: Purchased food at coffeehouses and donut shops in past month,
by household income, February 2009
- Figure 37: Mean purchases of food at coffeehouses and donut shops in
past month, by household income, February 2009
- Coffee & Coffee Drink Spending Trends and Rationales
- Key points
- Spending trends point downward
- Figure 38: Coffeehouse and donut shop coffee-spending trends, February
2009
- Figure 39: Coffeehouse and donut shop coffee-spending trends, by age,
February 2009
- Figure 40: Coffeehouse and donut shop coffee-spending trends, by
household income, February 2009
- Spending rationales show lure of home
- Figure 41: Coffeehouse and donut shop coffee-spending rationales,
February 2009
- Figure 42: Coffeehouse and donut shop coffee-spending rationales, by
age, February 2009
- Figure 43: Coffeehouse and donut shop coffee-spending rationales, by
region, February 2009
- Coffeehouse and Donut Shop Drinks Drunk Most Often
- Key points
- Hot coffee the most popular drink
- Figure 44: Coffeehouse and donut shop drinks drunk most often, February
2009
- Figure 45: Coffeehouse and donut shop drinks drunk most often, by age,
February 2009
- Figure 46: Coffeehouse and donut shop drinks drunk most often, by
region, February 2009
- How Coffeehouses Are Used
- Key points
- "Grab and go" remains the leading choice
- Figure 47: How coffeehouses are used, April 2008 and February 2009
- Figure 48: How coffeehouses are used, by age, February 2009
- Figure 49: How coffeehouses are used, by HH income, February 2009
- Figure 50: How coffeehouses are used, by region, February 2009
- What Coffeehouse Patrons Would Like to See More Of
- Key points
- Food enhancements and coffee variety top the most wanted list
- Figure 51: What coffeehouse patrons would like to see more of, February
2009
- Figure 52: What coffeehouse patrons would like to see more of, by
gender, February 2009
- Figure 53: What coffeehouse patrons would like to see more of, by age,
February 2009
- Figure 54: What coffeehouse patrons would like to see more of, by
region, February 2009
- Appendix: Trade Associations
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