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Which Coffee Chains are Growing? Which are Falling?

Growing:

  1. Starbucks. 2018 is positioned to be a big year of growth for this coffee giant. Its high-end Roastery brand is largely expanding; it is expanding its customer loyalty program and mobile app; it plans to continue its highly successful refreshment category of drinks; a new Starbucks is opening in China every single day; it is boldly building its European footprint by opening a shop in Milan; and it is diversifying its menu by investing in Princi, a fancy Italian artisan bakery chain, to bring freshly baked bread and pastries to select locations. Yes, Starbucks is currently at risk of missing its growth targets for the second straight fiscal year and is closing down a number of locations. Still, the company is optimistic about its growth due to the aforementioned plans, and though its growth has slowed, it is still growing, and in the second quarter of 2018, Starbucks pushed forth and outsold its expectations for sales.
  2. Dunkin’ Donuts. A plan to open 9,000 new stores, doubling the amount of Dunkin’ store locations, forecasts large-scale growth for Dunkin’ Donuts. First, the brand is planning to scale down, pare down its menu, refine a new business concept, and then remodel stores, bring in new equipment, and sell more food in non-Dunkin’ locations such as supermarkets. It also plans to focus on building more locations with drive-thrus for quick and convenient coffee pick-up en route to work. In addition, there is talk of opening smaller stores for pick-up of orders customers place in advance using the pre-ordering options for food and beverages on its mobile app.
  3. Tim Hortons. As one of the fastest growing franchises in the U.S., Tim Hortons is expanding its menu to grow morning, lunch, and snacking options, adding more stores in convenient locations for where its customers live and work, and renovating its restaurants. In addition to ramping up its growth in the U.S. by following a plan made in 2014 to add 300 new stores by this year, Tim Hortons also plans to add 500 locations in Canada by this year.

 

Falling:

  1. Costa Coffee. Britain’s biggest coffee shop chain is suffering a notable decline in sales and consumer demand. It explains that it has taken a big hit from the structural shift to online shopping, which has decreased the traffic to high street retailers and thus high street locations of Costa Coffee, where many of its UK shops are located. UK coffee drinkers seem to be turning away from large coffee chains in favor of artisan alternatives.
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