Coffeehouses and Donut Shops - US
Report description
This report explains many of these changes and provides detailed analysis of relevant consumer attitudes and behavior. The report addresses the following questions:
How have sales fluctuated in recent years and how are they likely to change between 2011 and 2016?
Which are the leading companies in the channel and what changes have these companies been making in the last year?
How are macro-economic conditions and rising interest in BFY options impacting the strategies of leading companies and category sales?
What types of new products have been introduced in recent years and how are companies leveraging innovation to drive sales?
What types of foods and beverages are most commonly purchased within the channel and how does usage vary across demographic segments?
What times of day do customers most often visit coffeehouses and donut shops and what are operators doing to encourage visitation during off hours?
How do customers use coffeehouses and donut shops and which segments tend to spend the most money when they visit?
What types of products would consumers like to see more of in the future?
Table of contents
Scope and ThemesWhat you need to know
Definition
Data sources
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Market poised for significant gains in 2011
Rate of new products introduction accelerated in Q2
Starbucks and McCafé lead in both food and drink
Most visit before noon
Two in five report spending less in the channel this year
High-quality coffee remains most popular beverage
Three in five often order to-go, but many young adults like to hang out
Many would like to see more breakfast sandwiches and BFY options
Insights and Opportunities
Quality, convenience, and service more likely to be rated as important than price
Figure 1: Key attributes of favorite coffeehouse, by age, June 2011
BFY donuts and baked goods could drive growth
Create brand community to drive loyalty and mitigate weak economy
Figure 2: First Starbucks store in Seattle
Inspire Insights
Trend: Premiumization and Indulgence
Trend: Moral Brands
Market Size and Forecast
Key points
Brewing up strong sales
Figure 3: U.S. sales at coffeehouses and donut shops, at current prices, 2006-16
Figure 4: U.S. sales at coffeehouses and donut shops, at inflation-adjusted prices, 2006-2016
Fan chart forecast
Figure 5: Fan chart of market U.S. sales at coffeehouses and donut shops, at current prices, 2006-16
Market Drivers
Key points
Population growth will drive long-term demand
Figure 6: Population, by age, 2006-16
Declining fertility rate could slow impact of overall population growth
Figure 7: Households, by presence of children, 2000-10
Growth and age distribution of Hispanic segment make potentially high value
Figure 8: Population, by race and Hispanic origin, 2006-16
Hispanic segment young, with high proportion of kids
Figure 9: Households, by Hispanic origin of householder and presence and ages of children, 2010
Figure 10: Households, by race of householder and presence and ages of children, 2010
Weak economy continues to stymie growth
Figure 11: Unemployment and underemployment rates, January 2007- September 2011
Figure 12: Consumer sentiment index, by quarter, March 2007-September 2011
Figure 13: Adjusted foodservice and drinking place sales, January 2008-August 2011
Figure 14: NRA Performance Indices, January 2009-August 2011
Many continue to report drinking more at home
Figure 15: Attitudes and behavior toward coffee, by age, June 2011
Some report drinking less coffee as a result of price increases
Figure 16: Change in purchasing behavior in buying favorite brand due to rising prices, by age, June 2011
Obesity and nutritional concerns also likely to impact sales
Figure 17: Percentage of population aged 20+ who are overweight, obese, or extremely obese, 1988-2008
Figure 18: Prevalence of obesity among children and adolescents aged 2-19, 1976-2008
Most adults watching diet
Figure 19: Trends in watching diet among adults aged 18+, 2005-10
Figure 20: Trends in watching diet among adults aged 18+, 2005-10
Brand Analysis
Overview
Starbucks
Figure 21: Evolution of Starbucks Logo
Dunkin’ Donuts
Caribou Coffee
Figure 22: Evolution of Caribou Coffee Logo
Krispy Kreme
Tim Hortons
Menu Insights Analysis—Indulgence and Health Both Important
Key points
The Competitive Context
Sharp rise in number of turkey sandwiches, donuts and pastries
Breakfast sandwiches become more common and differentiated
Figure 23: Top 10 food items at coffeehouses and donut shops, by incidence, Q2 2008-Q2 2011
Average price up nearly 20% from 2008
Figure 24: Top 10 food items at coffeehouses and donut shops, by incidence and price, Q2 2008-Q2 2011
Leading companies continue to add new products
Figure 25: Coffeehouse and donut shops food menus, by incidence, Q2 2008-Q2 2011
Tea latte and coffee frappe drinks becoming more common
Figure 26: Top 10 beverages at coffeehouses and donut shops, by incidence, Q2 2008-Q2 2011
Shake innovations could help drive sales
Smoothies another category where innovation could drive growth
Skinny drinks could drive growth at some concepts
Average price of drinks up 12%, on rising commodity prices
Figure 27: Top 10 beverages at coffeehouses and donut shops, by incidence and price, Q2 2008-Q2 2011
BFY options a major push
Figure 28: Coffeehouse and donut shops beverages, by incidence, Q2 2008-Q2 2011
Marketing Strategies
Overview
Dunkin’ Donuts
Figure 29: Brand analysis of Dunkin’ Donuts
Television advertising
Figure 30: Dunkin’ Donuts coffee, 2011
Figure 31: Dunkin’ Donuts coffee, 2011
Website
Figure 32: Quantcast estimates for Dunkin’Donuts.com, September 2011
Facebook
Twitter
YouTube
Other promotions
Figure 33: Dunkin’ Donuts perks rewards card, September 2011
Starbucks
Figure 34: Brand analysis of Starbucks
Television advertising
Figure 35: Starbucks ad, 2011
Figure 36: Starbucks ad, 2011
Website
Figure 37: Quantcast estimates for Starbucks.com, September 2011
Facebook
Twitter
YouTube
Other promotions
Figure 38: Starbucks treat receipt, September 2011
Figure 39: Starbucks store Facebook announcement, September 2011
Coffeehouse and Donut Shop Usage
Key points
Starbucks remains most popular coffeehouse for drinks purchases
Figure 40: Purchased food and/or drinks at coffeehouses and donut shops in past month, by store and gender, June 2011
Starbucks popular with 18-24s, even for food purchases
Figure 41: Purchased food and/or drinks at coffeehouses and donut shops in past month, by store and age, June 2011
Starbucks most popular for food and drink among $150K+ segment
Figure 42: Purchased food and/or drinks at coffeehouses and donut shops in past month, by store and household income, June 2011
Men tend to order somewhat more
Figure 43: Food and drink purchase means at coffeehouses and donut shops in past month, by store and gender, June 2011
Young adults most frequent drink purchasers at Starbucks
Figure 44: Food and drink purchase means at coffeehouses and donut shops in past month, by store and age, June 2011
Higher-income segments most frequent food/drink purchasers
Figure 45: Food and drink purchase means at coffeehouses and donut shops in past month, by store and household income, June 2011
Daypart Usage
Key points
Morning dayparts most important for coffeehouses
Figure 46: Coffeehouse daypart usage, by gender, June 2011
Young adults more likely to visit coffeehouses in middle of day
Figure 47: Coffeehouse daypart usage, by age, June 2011
$75K+ segment more likely to visit coffeehouses in early morning
Figure 48: Coffeehouse daypart usage, by household income, June 2011
Donut shop usage heavily concentrated in the morning dayparts
Young adults are the group most likely to visit later in the day
Figure 49: Donut shop daypart usage, by age, June 2011
Those from lower-income segments more likely than others to visit later
Figure 50: Donut shop daypart usage, by household income, June 2011
Coffee and Coffee Drink Spending Trends and Rationales
Key points
More patrons spending more at coffeehouses than last year
Figure 51: Coffeehouse and donut shop coffee-spending trends, February 2009, March 2010 and June 2011
Women somewhat more likely to continue to cut back on spending
Figure 52: Coffeehouse and donut shop coffee-spending trends, by gender, June 2011
Young adults most likely to be spending more at coffeehouses
Figure 53: Coffeehouse and donut shop coffee-spending trends, by age, June 2011
Those from $100K+ households maintaining coffeehouse spend
Figure 54: Coffeehouse and donut shop coffee-spending trends, by household income, June 2011
Coffeehouse and Donut Shop Drinks Most Often Consumed
Key points
Lattes and blended iced coffee more popular with women
Figure 55: Coffeehouse and donut shops drinks drunk most often, by gender, June 2011
Blended coffee drinks most popular with 18- to 24-year-olds
Figure 56: Coffeehouse and donut shops drinks drunk most often, by age, June 2011
$150K+ consumers prefer black coffee, avoid blended iced coffee drinks
Figure 57: Coffeehouse and donut shops drinks drunk most often, by household income, June 2011
Coffeehouse Usage Patterns
Key points
Most use coffeehouses to get coffee or a snack to go
Figure 58: How coffeehouses are used, by gender, June 2011
Young more likely to use coffeehouses as a “third place”
Figure 59: How coffeehouses are used, by age, June 2011
$150K+ segment more likely to use internet or do work at coffeehouses
Figure 60: How coffeehouses are used, by household income, June 2011
What Coffeehouse Patrons Would Like to See More Of
Key points
Women more interested in BFY options
Figure 61: What coffeehouse patrons would like to see more of, by gender, June 2011
Young adults interested in more coffee variety
Figure 62: What coffeehouse patrons would like to see more of, by age, June 2011
Those from higher-income segments more interested in BFY
Figure 63: What coffeehouse patrons would like to see more of, by household income, June 2011
Race and Hispanic Origin
Key points
Hispanics and Asians heavily over index on usage
Figure 64: Purchased food and/or drinks at coffeehouses and donut shops in past month, by store and race/Hispanic origin, June 2011
Asians and Hispanics more likely to want healthy items and broader coffee options
Figure 65: What coffeehouse patrons would like to see more of, by race/Hispanic origin, June 2011
Custom Consumer Groups—Households with Children
Parents over index on usage across chains
Figure 66: Food and drink purchase means at coffeehouses and donut shops in past month, by store and race/Hispanic origin, June 2011
Parents more likely to make purchases across chains and categories
Figure 67: Purchased food and/or drinks at coffeehouses and donut shops in past month, by store and race/Hispanic origin, June 2011
Drink variety and quality of baked goods key at coffeehouses
Figure 68: Attributes of favorite coffeehouse, by custom consumer group
Drink selection, quality of coffee and atmosphere key attributes in donut shops
Figure 69: Attributes of favorite donut shop, by custom consumer group, June 2011
Appendix—Trade Associations
Related research categories
By market: United States (in North America)
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