Coffee, tea continue to drive growth at restaurants
Feb. 14, 2012
NEW YORK — Coffee and tea continue to drive growth in the food service industry with sales projected to reach $18.7 billion in 2012, according to Packaged Facts.
Coffee and tea sales have been driven by menu innovation and a strong foothold in the breakfast daypart, with sales up 11% in 2011 also driven by returning consumers, aggressive menu innovation, increased penetration of coffee among restaurant units and menu price increases.
Dunkin Donuts, Green Mountain Coffee Roasters, McDonald’s and Starbucks each generate coffee and tea revenue in excess of $1 billion. Overall, coffee and tea players continue to outperform restaurant industry growth with restaurant brands across the food service spectrum pursuing incremental profits through improvements in coffee and tea quality and variety.
Most leading coffeehouse and donut shop brands have grown in same-store sales since 2005. Tim Hortons had a 21% cumulative increase in same-store sales and had sales growth of 7% during the 2008-2010 recessionary period.
There also has been an increased presence of specialty coffee drinks such as cappuccinos, lattes, Americanos and Macchiatos. The average price for coffee on restaurant menus has risen 25% since 2007.