“Second Cup Coffee Co. sign – Credit to https://myfriendscoffee.com/” by John Beans is licensed under CC BY 2.0.
Ontario, Canada-based Aegis Brands is selling 45-year-old Canadian coffee retail giant Second Cup Coffee Co. for $14 million CAD (approximately $11 million USD) to Quebec-based restaurant franchising specialist Foodtastic.
It is the latest in a long series of ownership changes for the coffee business, which was founded in 1975 and now constitutes Canada’s third largest coffee-focused chain behind Tim Hortons and Starbucks. According to the latest quarterly report from Aegis, there are approximately 231 Second Cup locations throughout Canada, including 200 franchise locations and 31 company-owned-and-operated locations.
US: Branded Coffee Market Loses $11.5 Billion in Sales Due to COVID19 Published January 13th, 2021 - 11:00 GMT
Covid-19 store closures have compelled many major US coffee chains, including Starbucks, Dunkin’ and Peet’s Coffee, as well as boutique operators, such as Bluestone Lane and Intelligentsia, to dramatically accelerate the roll-out of digital tools, including mobile ordering, curbside pick-up, delivery and e-commerce platforms for retail coffee. (Shutterstock)
The $36-billion US branded coffee shop market suffered a 24% decline ($11.5 billion) in sales over the last 12 months predominantly due to Covid-19 disruption, with the total number of outlets contracting 0.6% to 37,189, a report said.
Combined, the two market leaders, Starbucks and Dunkin’ control 66% of the total US branded coffee shop market, according to Project Café USA 2021, World Coffee Portal’s industry-leading report on the US branded café segment.
US branded coffee market falls 24% in 12 months
WASHINGTON, January 12, 2021 The $36-billion US branded coffee shop market suffered a 24% decline ($11.5 billion) in sales over the last 12 months predominantly due to Covid-19 disruption, with the total number of outlets contracting 0.6% to 37,189, a report said. Combined, the two market leaders, Starbucks and Dunkin’ control 66% of the total US branded coffee shop market, according to Project Café USA 2021, World Coffee Portal’s industry-leading report on the US branded café segment. Despite severe market turbulence, the US remains a source of innovation for the global coffee industry, with operators rapidly adapting to Covid-19 trading pressures with drive-thru, digital integration and new trading formats.
The COVID-19 pandemic has erased nearly a quarter of the total United States coffee shop market value, according to the latest annual report from coffee market research group Allegra World Coffee Portal.
The group now estimates the U.S. coffee shop segment to be worth some $36 billion heading into 2021, down 24% over the past 12 months with $11.5 billion in sales declines.
For the first time in modern history, there was also a net decrease in the number of coffee shops over the past 12 months, with the market contracting by 208 shops (0.6%) to comprise 37,189 outlets, according to the research.
Involving more than 100 interviews with industry leaders, field research, desk research and 5,000+ online surveys with U.S. consumers, Allegra World Coffee Portal found a remarkably negative sentiment among coffee shop operators regarding the current business climate.