Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

U.S. coffee shops will only return to pre-pandemic sales in 2023 - report

Published 01/11/2021, 05:43 PM
Updated 01/11/2021, 05:47 PM
© Reuters.
SBUX
-
DNKN
-

LONDON (Reuters) - U.S. branded coffee shops will only return to pre-pandemic sales levels next year after the COVID-19 pandemic wiped out nearly a quarter of their turnover last year, according to Allegra World Coffee Portal, a research and consultancy firm.

The firm estimates sales at U.S. branded coffee shops, which include household names like Starbucks (NASDAQ:SBUX), JDE Peet's and Dunkin' Brands (NASDAQ:DNKN), fell 24% last year to $36 billion, and will only grow to $40 billion this year, below 2019 levels.

It says 208 out of a total of 37,189 branded coffee stores closed shop permanently in 2020, equivalent to 0.6% of the market.

"The U.S. coffee shop market is enduring the worst trading environment in living memory. However, with a changing political situation, mass vaccinations and operators rapidly adapting with new trading formats, there is light at the end of the tunnel," said Allegra Group CEO Jeffrey Young.

"We expect trading to begin stabilizing from summer 2021, however it will take a number of years for operators to fully readjust to the ‘new normal’," he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.