In the year leading up to June 2022, branded coffee shop sales in the United States increased by 10% to $45.8 billion, or 96% of their pre-pandemic sales, according to a report released on Tuesday. Additionally, the number of stores surpassed those seen before 2020.
According to World Coffee Portal’s Project Café 2023, there are now 38,411 branded coffee shops in the United States, the world’s largest consumer of the beverage, which is 2.8% more than before the coronavirus pandemic.
Starbucks Corp (SBUX.O), Dunkin’, and Panera Bread grew their presence on the U.S. market to 15,650, 9,262, and 2,173 stores, respectively, according to the report.
It was reported that the majority of coffee chain sales increased in 2022 compared to the previous 12-month period, with 46% of them achieving sales growth of 5% or more.
Ongoing staff shortages and an emerging cost-of-living crisis pose significant short- to medium-term challenges for the industry, according to the report.
According to the report, the industry’s practices continue to evolve in the aftermath of the pandemic.
Pre-ordering, delivery, and drive-thrus will continue to be popular as long as consumers value convenience.
Dutch Bros, which operates 603 stores and is based in Oregon, was the fastest-growing major U.S. branded chain at 28%.
The rapid growth of Blank Street Coffee, a company supported by private equity financing, was also highlighted in the report. It launched in the midst of the pandemic in May 2020 and has thus far opened 40 stores in New York City and Boston, with the goal of reaching 100 locations by the end of the year.