|Last Quarterly Update:||3/27/2017|
|SIC Codes:||5461, 5812|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry operate limited service restaurants that serve specialty snack items or nonalcoholic beverages for consumption on-premises, such as bagel shops, coffee shops, doughnut shops, ice cream parlors, juice bars, and smoothie shops. Major companies include Dunkin’ Brands, Einstein Noah Restaurant Group, FOCUS Brands (owner of Auntie Anne's, Carvel, and Cinnabon), Jamba Juice, Krispy Kreme Doughnuts, and Starbucks (all US-based), along with Caffe Nero and Costa Coffee (UK), Duskin (Japan), and Tim Hortons (Canada).
Worldwide food service revenue, which includes revenue from specialty eateries, totals about $3 trillion a year, according to Euromonitor. Among specialty eateries, coffee shops in particular are growing in countries such as China, India, Indonesia, and Vietnam.
The US specialty eatery industry includes about 60,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $31 billion.
Demand is driven by demographics, consumer tastes, and personal income. The profitability of individual companies depends on efficient operations and high volume sales. Large companies have advantages in purchasing, finance, and marketing. Small companies can compete effectively by offering high-quality menu items and providing superior customer service. The industry is fragmented: the top 50 companies account for about 45% of revenue.
Specialty eateries compete with establishments offering snacks and other food items such as grocery stores, convenience stores, retail bakeries, and delis. In addition, specialty eateries compete with traditional fast-food and full service restaurants.
Would you or your company benefit from having unlimited access to First Research's industry intelligence tools?Learn More About Subscription Options