U.S. coffee chains' sales rise 10% to near pre-pandemic levels -report
Reuters · 09/13/2022 13:47
U.S. coffee chains' sales rise 10% to pre-pandemic levels -report

By Marcelo Teixeira

- Sales by branded coffee shops in the United States increased 10% in the 12 months to June 2022 to reach $45.8 billion, a value that is 96% of its pre-pandemic sales, while the of stores surpassed those seen before 2020, a report said on Tuesday.

According to Project Café 2023, a publication by World Coffee Portal, there are 38,411 branded coffee shops in the United States, the world's largest consumer of the beverage, or 2.8% more than before the coronavirus pandemic.

The country's largest coffee operators - Starbucks Corp SBUX.O, Dunkin' and Panera Bread - all increased their presence in the U.S. market to reach 15,650, 9,262 and 2,173 stores respectively, the report said.

Most coffee chains posted increases in sales in 2022 compared with the previous 12-month period, it said, with 46% of them reaching sales growth of 5% or more.

The report, however, said that "ongoing staff shortages and an emergent cost-of-living crisis represent significant short-to-medium term challenges for the industry" going forward.

In terms of habits, it said the industry continues to develop following changes seen during the pandemic.

"Pre-ordering, delivery and drive-thru, are set to remain as consumers maintain a heightened desire for convenience."

Oregon-based Dutch Bros, which operates 603 stores, was the fastest-growing major U.S. branded chain at 28%.

Blank Street Coffee, backed by private equity financing, was also a highlight in the report for its speed of growth. It launched in the middle of the pandemic in May 2020 and has opened 40 shops in New York City and Boston so far, aiming to have 100 locations by the end of the year.

(Reporting by Marcelo Teixeira; editing by Jonathan Oatis)

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