Abstract
The coffeehouse and donut shop market is seeing strong growth, bolstered by a shifting trend to premium coffee, expanding beverage and food menus, and young customers who embrace the coffeehouse culture as a part of their aspirational lifestyle. This growth has not been without cost, as chains bursting at the belt loose their identities as they try to meet everyone' s needs. In the midst of the catfight for the food and beverage dollar, competition has grown fierce within the market and from external sources such as quick-service and fast-casual restaurants.
Coffeehouses include freestanding stores, kiosks, and coffee carts, as well as those located in malls, office buildings, and hospitals, if operated independently of the facilities that house them. Coffeehouses may sell other items in addition to coffee, such as sweets, tea, travel mugs, and coffee beans, but the main product is coffee and coffee-based beverages. Donut shops are similarly housed units where donuts, other baked goods, and coffee feature prominently on the menu.
The report excludes other types of outlets that sell coffee, such as restaurants, bagel shops, truck stops, convenience stores, gas stations and diners (although some of these competitive outlets are considered when addressing competition issues).
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