Findings:
Coffee consumption is at a 20-year high, driven by consumers aged 25 and up.
Visits to major coffee chains rose 5.1% during the first five months of 2024.
Foot traffic increases were greatest in less-populated states, but major markets also saw a rise in coffee drinkers.
Starbucks saw a small decline in year-over-year visits.
Reasons for increased visits to coffee places include expansion of coffee chains, return-to-office trend, and extremely short coffee stops.
Dunkin's success with very short visits may be driven by its app, which lets people place mobile orders.
Key Takeaway:
Despite higher grocery prices and flattening tips, coffee consumption is increasing, and coffee chains are experiencing a rise in visits due to various factors.
Trend:
The trend towards increased coffee consumption and visits to coffee places is likely to continue, driven by the expansion of coffee chains, the return-to-office trend, and the convenience of mobile ordering.
Conclusions:
Coffee remains a popular and affordable treat for consumers, even in the face of economic challenges.
The coffee industry is adapting to changing consumer behavior by offering mobile ordering options and expanding into new markets.
Implications for Brands:
Coffee brands should focus on expanding their footprint, offering mobile ordering options, and catering to the return-to-office trend.
Brands should also consider offering a variety of affordable options to appeal to budget-conscious consumers.
Coffee brands that can adapt to these trends are likely to see continued growth and success in the market.
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