Overview and Scope
A coffee franchise refers to a business model where an individual or group (the
franchisee) is granted the rights by a larger company (the franchisor) to
operate a coffee shop or chain of coffee shops under the franchisor's brand
name, using its established business practices, trademarks, and systems. This
arrangement allows the franchisee to benefit from the brand recognition,
marketing strategies, operational support, and proven business model of the
franchisor while the franchisor expands its market presence and brand reach
without directly managing additional locations.
Sizing and Forecast
The coffee franchise market size has grown strongly in recent years. It will
grow from $96.6 billion in 2023 to $105.83 billion in 2024 at a compound annual
growth rate (CAGR) of 9.5%. The growth in the historic period can be
attributed to growing coffee culture, increasing disposable incomes,
urbanization, globalization, rise of specialty coffee, expansion of retail
spaces, tourism and travel.
The coffee franchise market size is expected to see strong growth in the next
few years. It will grow to $152.97 billion in 2028 at a compound annual growth
rate (CAGR) of 9.7%. The growth in the
forecast period can be attributed to emerging markets, health and wellness
trends, sustainability and ethical sourcing, digital marketing, loyalty
programs, co-branding and partnerships, convenience and on-the-go consumption.
Major trends in the forecast period include automation and robotics in cafes,
mobile ordering and payment apps, personalized customer experiences through ai,
sustainable and eco-friendly practices, integration of blockchain for supply
chain transparency, innovative brewing techniques, augmented reality (ar) and
virtual reality (vr) experiences in stores
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Segmentation & Regional Insights
The coffee franchise market covered in this report is segmented –
1) By Cuisine: Lunch, Brunch, Coffee And Bar
2) By Delivery Type: Dine-In, Dine-Out
3) By Application: Café Franchises, Espresso Franchises
Asia-Pacific was the largest region in the coffee franchise market in 2023. The
regions covered in the coffee franchise market report are Asia-Pacific, Western
Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Major Driver Impacting Market Growth
The rising proliferation of coffee culture is expected to propel the growth of
the coffee franchise market going forward. Coffee culture refers to the social
and cultural practices, traditions, and norms surrounding the consumption and
appreciation of coffee. The increasing proliferation of coffee culture is due
to the rise of specialty coffee shops, the global spread of coffeehouse chains,
the growing appreciation for gourmet and artisanal coffee, the influence of
social media, and the cultural significance of coffee as a social beverage.
Coffee franchises enhance and spread coffee culture by offering convenient and
consistent coffee experiences while helping companies expand their brand
presence, maintain quality standards, and meet the growing demand for specialty
coffee in various locations. For instance, in December 2023, a report published
by the International Coffee Organization stated that world coffee production
increased by 0.1% to 168.2 million bags in the coffee year 2022–2023. The
output for the coffee year 2023–24 is expected to grow by 5.8% to 178.0 million
bags, with Arabica's output rising to 102.2 million bags and Robusta's
increasing to 75.8 million bags. Therefore, a rising proliferation of coffee
culture is driving the coffee franchise market.
Key Industry Players
Major companies operating in the coffee franchise market are Starbucks Corporation, McDonald's
Corporation, Luigi Lavazza S.p.A. , Tim Hortons Inc., Philz Coffee Inc., Costa
Limited, Dunkin' Brands Group Inc., Scooter's Coffee LLC, Dutch Bros Coffee
LLC, The Second Cup Ltd., Peet's Coffee Inc., Black Rock Coffee Bar LLC,
Caribou Coffee Company Inc., Gloria Jean's Coffees International Pty. Ltd.,
Ballard Brands LLC, Nescafe Coffee Shop, Caffè Nero Group Ltd., Coffee Republic
Ltd., Tully's Coffee Corporation, Ziggi’s Coffee LLC, Ellianos Coffee Company,
Frespresso Hospitality Pvt Ltd, International Coffee And Tea LLC, The Human
Bean, Xpresso Delight LLC
The coffee franchise market report table of contents includes:
1. Executive Summary
2. Coffee
Franchise Market Characteristics
3. Coffee
Franchise Market Trends And Strategies
4. Coffee
Franchise Market - Macro Economic Scenario
5. Global
Coffee Franchise Market Size and Growth
.
32. Global
Coffee Franchise Market Competitive Benchmarking
33. Global
Coffee Franchise Market Competitive Dashboard
34. Key
Mergers And Acquisitions In The Coffee Franchise Market
35. Coffee
Franchise Market Future Outlook and Potential Analysis
36.
Appendix
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