Coffee Shops Have Seen a 5,380% Sales Increase in Curbside and Pickup Orders
In 1922, around 150,000 coffee shops existed across the globe. The number seems minuscule compared to the current marks of 2,800,000, an increase of over 5,380%. Coffee shops are most popular in Europe and North America, which account for almost 2/3s of the world’s coffee shops, leaving Asia with only a fraction of the number.
Over the last 18 years, coffee shops have seen a dramatic increase in sales. Here’s an upturn on how coffee shops have been trending since the early 2000s:
- Curbside and pickup orders: +5,380%
- Unit sales: +8,140%
- Beverage sales: +6,340%
- Food sales: +4,350%
- Beverage customers: +9,300%
- Average weekend daytime head count: +5,170%
- Average weekend nighttime head count: +4,070%
- Drive-through orders: +4,290%
- Unit growth rate: +14%
- Coffee farms: +60%
Total Order Amounts in Coffee Shops Are up 25%
Coffee shops are booming, and orders from productivity-loving start-ups have evolved. People don’t just go to Starbucks anymore, they go to buy high-end roasted coffee, order drinks and pick up lunch.
How does this affect you? Just like any other industry, innovation has driven up competition, and the small business owner can struggle to compete with the bigger, more powerful corporations. It’s no secret that coffee shops have become a staple of office culture, offering employees a place to sit and work, but what doesn’t get much attention is how new innovations have the potential to be a game changer in an industry that needs the help.
Here are some facts that might change how you order your coffee.
26% of Coffee Shops Are Now Cashless, up From 2% Before COVID-19
Just a few years ago, if a coffee patron wanted to pay with cash, it was an option but not a requirement. Today, however, the number of company’s that do not accept cash payments from consumers has more than doubled to 38%.
The rise of mobile, digital money and decreased paper money usage makes it easier (and more convenient) for consumers to pay with digital money. However, mobile payments are not as widely accepted as cash and digital payments are not completely equal to cash.
Currently, Bitcoin, Apple Pay, Google Wallet, and Android Pay payments. But Apple Pay is the only payment tool that's widely accepted at coffee shops at the moment.
Ari Hoffnung, the COO of changelly, has shares his thoughts about why this is so:
Since COVID-19, Coffee Growler Sales Have Increased by 129%
People Who Use an App to Order Coffee Jumped 23% in 2019
Technology is improving the way we work, eat, learn, play, and communicate. But sometimes, it can also distract us and hurt our vitality. When it comes to coffee, technology can be a double-edged sword for people who drink coffee while working. According to a new study from Cafe World.ai, people who order coffee through an app have a 23% likelihood of leaving their workspace behind.
The study, which saw participation from more than 2,200 customers of Cafe World.ai …the App that allows baristas to follow their work in real-time and gives baristas insights about the ongoing conversation… found that employees who drink coffee are 2.5 times more likely to order over the app than employees who do not drink coffee.
Interestingly, the study found a case to be made for both coffee drinkers and non-coffee drinkers. As the number of entrants who order coffee via the app grew, the likelihood of employees leaving their workspace was reduced. But for those who do not drink coffee, were more likely to order via the app if they were working in an open area rather than a closed workspace.
25- to 34-Year-Olds Spend on Average $2,688 a Year at Coffee Shops, the Most of any Demographic
Coffee continues to top the list of most popular beverages in the US: 70% of adults drink it daily.
18% of the population visits a coffee shop at least once a week.
44% of Americans drink their coffee at home, while 40% grab it to-go.
Over 10% of Americans now work in coffee shops, up from around 1% in the late 1990s.
Nearly a third of Americans are baristas, up from around 8% in the late 1990s.
Americans Are Expected to Spend Over $85 Billion on Coffee in 2021, and Over $96 billion in 2023
Coffee is the second most popular drink in the world, second only to tea. Over 500 million Americans enjoy the taste of coffee each day, making it unchallenged on the global stage. Nevertheless, coffee remains a popular beverage among many Americans and a favorite choice for coffee lovers everywhere.
Coffee has helped fuel American business innovation for centuries. Numerous American tech startups and companies have begun in coffeeshops. From the early days of Acme and Starbucks to Common and Dropbox…coffee is woven through the DNA of many successful tech companies.
While coffee has consistently been a popular beverage throughout American history, its global appeal has grown dramatically over the past few decades. Growing global demand for coffee has propelled its global market to over 100 million tonnes, making the global industry one of the world’s most competitive.
The United States is home to the world’s biggest coffee market. It’s expected that the market will expand to 1.88 billion pounds by 2021, and increase further to over 2.53 billion pounds in 2023. In comparison, the global coffee market is expected to reach over 180 million tonnes by 2021.
The Average Cost to Launch a Cafe-Style Coffee Shop Is Between $150,000 and $400,000
When you’re starting a coffee shop, you should realize that it’s not a cheap endeavor. A good coffee shop just doesn’t appear overnight – it takes quite a bit of money.
Say you start your own coffee shop in the next year or two – that’s a long time to wait to have a business. If you look for coffee shops nearby, the first thing you’ll find is that they are either already up and running or are operating in a deficit.
Aside from the costs of purchasing the vending machine and coffee machine, maintaining the business will also need some money. One of the largest expenses of running a coffee shop is the cost of buying and maintaining the coffee equipment (the grinder, espresso machine, brew system and thermometer). That alone is already a hefty monthly spend, and it’s one of the costs that you can control with some extra work.
Almond Milk Is the Most Popular Non-Dairy Coffee Additive
Of the non-dairy coffee additives, almond milk is the most popular because it generally has a lighter taste than soy milk. Almond milk is thicker than coconut milk, but it also has a thinner consistency than soy milk.
Coconut milk, on the other hand, is thinner than both almond and soy milk (although it’s the most expensive of the three). It’s also a bit stronger in flavor than either of the other two non-dairy coffee additives.
The most popular non-dairy coffee additives among coffee drinkers are soy milk, almond milk, and a fresh espresso shot. This means that people who drink coffee typically place a priority on how much flavor they’re getting in their coffee. In other words, if you’re looking to stay away from dairy products but also want to boost the flavor of your coffee, then almond milk might be the perfect solution.
Labor Costs in a Coffee Shop Are Often the Highest Expense at 28% to 35% of Total Costs
Coffee shops have to compete with a wide array of retail locations in today’s fast-paced economy where staying open for hours is not a must. Very few coffee shops even have the advantage of being located in the heart of a city. So in order to keep the business afloat, coffee shop owners need to find ways to cut their operating expenses and keep labor costs from eating away big chunks of their profit. For coffee shop proprietors, the biggest expense after coffee is labor; and in order to run the business efficiently and effectively, these labor costs need to be closely monitored.
Therefore, it comes as no surprise that the majority of coffee shop owners find it difficult to maintain their profit margins. For example, one survey showed that the total monthly costs of a coffee shop amounted to roughly 27.5% of the monthly sales. As you can see from the chart below, coffee shop owners might be able to cut back on cost a bit if they reduce or eliminate their labor expenses. But the increase in sales brought by the labor cuts could not be offset by the reduction in overhead.
32% of Millennials Report Drinking an Espresso-Based Drink in the Past Day, the Highest of Any Generation
According to a study done by Starbucks, 32% of Millennials reported drinking an espresso-based drink in the past day, the highest of any generation. When you throw in the Generation Xers, it rises to 38% of the population consuming caffeine each day.
Some of the most popular Starbucks alternatives are these espresso drinks.
The Numbers Show a Shifting Market
The numbers speak for themselves. That’s why over the past couple of years, we’ve seen a substantial shift toward espresso-based beverages at coffeehouses. Starbucks increased number of espresso-based drinks in their menu from 19% to 20% to 19% in 2011 and 2012.
And while the popularity of Frappucino falls between traditional coffee and espresso, a growing number of consumers are turning away from Frappucinos.
In 2010, Frappucinos comprised about 8% of Starbucks’s sales. In 2011, that number rose to 11%. But it fell to 9% in 2012.
Over 33% of Coffee Drinkers Started Before the Age of 17
According to the results of a 2012 National Coffee Drinking Study conducted by the USDA, nearly 33% of all American consumers of coffee began drinking coffee before the age of 17. This statistic is an anomaly in the general statistics of coffee drinking as only 18% of American adults consume coffee regularly (according to the USDA). It also represents a likely fact that most of these new drinkers of coffee started drinking it at a younger age in order to be able to drink coffee for business purposes.
46% of American Coffee Drinkers Use a Drive-Thru to Purchase Coffee Every Week
According to the National Coffee Association, over 46% of American coffee drinkers—around 78 million people—use a Drive-Thru to purchase their weekly coffee fix. This statistic might not come as a surprise to those who are amongst the numerous people who enjoy a daily pick-me-up from the nearby coffee shop versus a percolator found on your kitchen counter. Essentially, drive-thru’s have become the new way to get your coffee fix, especially among today’s youth.
Some of the popular fast food chains that customers choose within a Drive-Thru include Dunkin’ Donuts, Starbucks, Carl’s Jr., McDonald’s, and Starbucks. This is not to say however, that all coffee shops offer drive-thrus. If this is the case, the mobility of your drinker will significantly decrease along with your customer flow.
Coffee Drinkers Spend 79% of Their Coffee Budget Outside of the Home
The coffee in your cup is not the only thing that you are spending for when you go for a cup of coffee. You are spending more money on coffee, apart from the money that you are spending on the cups, spoons, etc.
In a study conducted by one of the major market research houses, around 80% of the amount spent on coffee is spent outside of home. The way that people buy coffee today is very different from the way it was in the past. They are primarily influenced by factors such as the social setting, convenience, cost, love for a product, looks etc. On top of that, there exists the factor of being able to make customizations based on the brand that they purchased.
The prices of coffee have been on the rise and they are expected to increase in the future as well. Most of the coffee is bought from the chains of coffee shops such as 'Starbucks', 'Dunkin Donuts', etc. The coffee consumption is rising, it is going up by 5% on a yearly basis. The market has grown from 500 billion in 2010 to roughly 600 billion in 2012. 4 out of 10 people in the world drink coffee or over 300 million people. There are approximately 100 billion cups of coffee sold every year.
Out of Americans Who Drink Coffee, 44% Drink 2 to 3 Cups a Day — 6% Drink 6 or More Cups a Day
According to a survey by the American Time Use Survey, 22% of Americans drink coffee regularly. Out of this 22%, 8% drink more than 5 cups of coffee a day, and 6% drink 6 or more cups of coffee a day. A whopping 46% of coffee drinkers consume 2 to 3 cups a day, while 66% of coffee drinkers consume one to two cups of coffee a day.
Caesars survey of 1,000 adult internet users told us that 44% of people drink coffee every day, and studied the connection between coffee consumption and work efficiency and job satisfaction. A follow-up study reported that employees’ performance increases by 9% after drinking coffee.
Peak Weekday Coffee Consumption Is 8:30 Am, While the Weekend Is 9:45 Am
Coffee consumption on the weekends is significantly lower than on weekdays, according to a survey from the National Coffee Association. Peak weekday consumption of coffee occurs at around 8:30 am, while the weekend peak time is around 9:45 am.
Wow, that’s a 33 percent increase in coffee consumption each day! That’s a whole lot of coffee!
It’s not entirely surprising as people tend to consume less coffee on the weekends, even though they stay up just as late. According to the research, the top reason people do not consume as much coffee on the weekends is that they’re simply too tired to get out of bed. If you’re looking for some sleep, this 8:30 am appointment is not to be missed.
The Median Pay per Hour in the US for a Food and Beverage Worker Is $10.45
The Average American Spends $1,100 on Coffee Every Year
Like many people, you probably love that taste of hot, gooey coffee. However, how much do you know about the history of coffee and how it’s grown? Coffee has become an all American tradition, with 1 in 5 Americans having at least one cup of coffee during a given day.
Coffee Contains Over 1,000 Chemical Compounds, Which Requires Precise Brewing Conditions to Release the Coffee Bean’s Ideal Flavor and Aroma
The coffee bean goes through a complex process of biochemical change that begins the moment it is picked and continues through its processing into the cup.
The plant’s outer layer (the coffee bean’s hull), which affects the plant’s flavor, is cracked open after being picked, dry-dried, and sorted. The bean’s inner seed then undergoes a process of natural fermentation and roasting, which gives it its uniquely –coffee” flavor and aroma.
Furthermore, since the beans weigh from 2 to 4 ounces and require specific brewing conditions to unlock their full flavor and aroma, those factors are also under the brewer’s watchful eyes. Those factors include:
- Water supply quality
- Sensory characteristics of the coffee, such as roast, body, and grind size
- Brewing temperature and time
- Brewing container size, coffee-to-water ratio, and dosing
Since the coffee bean’s maturation and roasting influences the tastes and flavors it releases, different types of coffee beans will require different brewing conditions to release their full potential. This individual brewing profile also determines the consistency and flavor of your cup of coffee.
The Average American Orders 2 Add-Ons to the Standard Latte
Look, we'll say it. The whole milk option in your coffee is ridiculous and adds 20 calories to the mix that you usually will not burn off anyway. And yes, we're being 100% scientific about this, but when in Rome, right?
And no, you're not the only one who thinks it. In fact, if you order an extra shot of espresso, you're actually a part of a group of 6 billion, approximately, who still drink the same amount of coffee per day as they did in the '30s.
While a latte came about in 1900 to enable more flavors of espresso, many people have developed their own coffee variations that go far beyond a basic shot of double-espresso or a sip of hot water. Still, these numbers may shock you. Click through to TheCupCafe for the full infographic breakdown.
The Average Price of a Latte in the US Is $4.16
43% Say the Primary Reason They Drink Coffee Is for the Taste — 26% Say It’s to Give Them Energy
Based on the hefty infographic below, you’d think that everyone has an opinion about their daily 8 standard ounces of Joe, but the good news is that more than 43% of people drink coffee for the taste, not for the caffeine boost, as 45% of people sip their joe at home. Coffee is not just for the morning, as 17% of people go out to buy a cup and walk around with the plan of grabbing a caffeine break as soon as they get the chance.
Now that you know why most people drink coffee, here’s a bit more in-depth analysis on exactly what they’re drinking and how it’s affecting them. Sixty-four percent of Americans consume coffee regularly, which is the highest percentage in the world. The American love affair with coffee is clear, and people are consuming more coffee than ever before.
The average American consumes 16 pounds of coffee per year. Although this might seem like a lot, people in Europe and Asia are given more credit for their coffee consumption as they drink almost twice as much as people in America. The largest consumer of this coffee is the United States (67%), but this only makes up 25% of the global coffee market.
12% of People Who Consume Coffee Every Day Consider It Damaging to Their Bodies
The National Coffee Association (NCA) has a number of statistics on its website, including their own coffee consumption statistics which reveals that 12% of U.S. coffee drinkers are consuming more than 4 cups of coffee each day.
They also have statistics on how drinking coffee affects those who consume it. For instance, 70% of coffee drinkers say that drinking coffee has slight effects on their health, and those who drink more than 6 cups per day are reportedly at higher risk of developing digestive problems, such as ulcers and liver disease.
Additionally, the NCA has statistics on coffee’s potential health benefits. They claim that there isn’t enough evidence to suggest that coffee, itself, can help people live longer. But it does strengthen the heart and the blood vessels, which could have a positive impact on longevity.
Most Popular Way to Enjoy Coffee
A key takeaway from the NCA’s coffee facts is that most coffee drinkers actually drink it the most in the morning when they wake up, and not long after they get out of bed.
But today’s coffee-lovers aren’t just drinking coffee in the morning. The second most popular time for coffee drinkers to enjoy it…is in the afternoon, and the third most popular way to consume coffee is after dinner.
The Lethal Dose of Coffee Is About 70 to 100 Cups
Just about every person on this planet drinks coffee at least once in his or her lifetime. Although we all know coffee is a stimulant, the way in which it affects us is a little more complicated than that.
It’s not as simple as caffeine. In fact, there are many different chemicals present in the coffee bean that affect our body in different ways. However, only three of those chemicals are caffeine, chlorogenic acid, and trigonelline.
Our bodies are unique in the way it takes in and metabolizes caffeine, and for the average person, most of the intoxication takes place within the first few minutes after ingestion.
On the other hand, there is no level of chlorogenic acid that is present in coffee that is safe for us to ingest. This explains the common recommendation among doctors and fitness enthusiasts is to avoid coffee.
Technically the lethal dose of caffeine is between 300 and 400 milligram per kilogram (28.5 to 35 ounces). This means that a 175-pound person would need to consume 175lbs of coffee to reach the lethal dose.
Considering the average 5-ounce cup of coffee contains around 20 milligrams of caffeine, the caffeine content in most coffee brands is well below the lethal dose. The average coffee drinker will probably get out alive from a cup of coffee, but next time, think twice before you sip that coffee.
4x More People Report Being Extremely More Productive After Consuming Caffeine Than Before Consuming
Caffeine can be an extremely powerful productivity tool when you incorporate it into your day. According to one study, most people report being more productive after consuming coffee – but in comparison to being consuming caffeine before:
- 4x More People Say They Are Extremely More Productive
- 24% of People Shifted Their Sleeping Schedule to Reduce The Impacts of Daylight Saving Time
- 9.3% Reported Weekly Expenses on Facebook
- Coffee Intake Was Found to Improve Driver Performance According to a study conducted by the NHTSA of 200,000 drivers using a mobile app. According to Professor Jim Anderson, president of Rensselaer Polytechnic Institute:
- Participants of the study found a 5% increase in productivity after 8 cups of coffee … The greatest correlation however, was to reduced crashes by 7.5% after 12 cups of coffee.
Alaskans Are the Highest-Tipping Coffee Drinkers in the US, Leaving on Average a 17.5% Tip
Coffee shops in Alaska earn the highest wages from rural customers, according to the US Census Bureau. In a study conducted by the Department of Agriculture, the average tip from rural city dwellers was only 12.9%. On the other hand, Alaskan coffee drinkers tip an average of 18.5% on overall purchases and 17.5% on major purchases.
According to the survey, about half of all consumers (50%) will consume coffee daily and over half of the people surveyed are confident that coffee has a positive effect on their overall health. In addition, over half of all coffee drinkers plan on buying organic coffee in the future, and a quarter of those surveyed go organic already, representing a large opportunity to both coffee retailers and coffee farmers.
The infographic also shows that the younger consumers are, the more they are likely to help with the brewing process at home. About 76% of people aged 18-34 are interested in brewing coffee at home.
If you have a coffee device you have an opportunity to upsell them in a number of incredible ways, and it might even increase single cup consumption for consumers to do so.