One thing the Great Recession taught coffee purveyors in the U.S. and which investors with a Starbucks franchise in Europe may be learning now, is that when money is tight and the economy is struggling, people will give up their fancy, calorie-packed coffees for a cheaper, simpler option.
According to the most recent Coffee and Snack Shops industry report from IBISWorld market research, after more than a decade of consistent growth, the industry experienced a sharp correction in 2009 because of the economic crisis in the United States as well as consumers’ continuing demand for healthier foods. Industry revenue fell by 6.6 percent to $25.9 billion.
“During the recession, consumers spent less on luxuries like eating out, choosing to purchase low-price items when they did spend. This caused high-priced coffee drinks and other nonessential snacks to lose the battle for consumers’ shrinking budgets,” the IBISWorld report states.
- See more at: http://www.franchisechatter.com/2014/02/11/franchise-chatter-guide-starbucks-franchise-plan-rolls-out-in-europe-while-u-s-market-braces-for-growing-competition-among-coffee-franchises/#sthash.bNlVdSBw.dpuf