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Food: Coffee Franchises
The U.S. coffee shop industry includes about 25,000 stores with combined annual revenue of approximately $13 billion, according to the Specialty Coffee Association of America.
Consumer taste and personal income drive demand. The profitability of individual businesses depends on the ability to secure prime locations, drive store traffic and deliver high-quality products. Large businesses have advantages in purchasing, finance and marketing. Small businesses can compete effectively by offering specializing products, serving a local market or providing superior customer service.
Coffee shops compete with businesses such as convenience store, gas stations, quick service and fast food restaurants, gourmet food and donut shops.
Major products include beverages and food such as brewed coffee and tea, espresso drinks, cold-blended beverages, pastries, bakery items, desserts, sandwiches and candy.
Many coffee shops sell whole or ground coffee beans for home consumption. Some coffee shops sell coffee or espresso-making equipment, grinders, mugs and other accessories. Most coffee shops serve high-quality, premium coffee known as specialty coffee.
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