Coffee Shop Business Plan Template

Industry Analysis

The Coffee Shop industry has grown at a faster rate than most other industries as  consumers have increasingly sought out speciality coffees and convenience at an affordable price.  In addition, operators will likely continue to stimulate consumer interest by expanding their menu options to any changes in consumer preferences. 

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Over the next five years, the Coffee Shop industry is forecast to at an annualized rate of 3.0%.  The key drivers that will propel this growth include: 

  • Consumer spendingWhen consumer spending is high, consumers are more likely to spend money at coffee shops. Consumer spending is expected to increase over the next five years.
  • Consumer confidence index- Changes in the consumer confidence index have a significant effect on spending on discretionary items, including items from coffee shops. During periods of high consumer confidence, consumers tend to spend more on discretionary items like coffee. The consumer confidence index is expected to increase.
  • Per capita coffee consumption- When coffee consumption increases, coffee shops experience revenue growth. Per capita coffee consumption is expected to increase, representing a potential opportunity for the industry.