Market Trends of north america cafes & bars Industry
Canadian coffee shops and bars offer a variety of personalized and unique dining experiences, from quick and convenient to leisurely and relaxing
- The number of cafes and bars increased by around 1,200 from 2019 to 2022. The number of franchisee establishments is increasing in the country as the companies are expanding their footprint. The number of franchisee outlets increased by more than 4,000 each year during the review period. The number of cafes and bars reached more than 13,278 restaurants in 2022. This number is projected to record an average Y-o-Y growth rate of 5.4% during the forecast period.
- Cafes and bars accounted for the third-largest share in terms of the number of outlets in 2022. Standalone cafes and bars can be found in a variety of settings, from urban neighborhoods to suburban strip malls and rural areas. They offer a range of coffee, including latte, cappuccino, Americano, and espresso. In the first quarter of 2023, the key players of coffee chains with the maximum number of outlets were Tim Hortons (3,568 outlets), Starbucks (1,417 outlets), McCafe (1,400 restaurants), and the popular bars were Civil Liberties and Botanist, offering different types of wine, craft beer, vodka, and mocktails/cocktails. These bars also provide a convenient and fast dining experience that is personalized and unique.
- An average person in Canada consumes almost three cups of coffee per day, thus increasing the number of orders per day, which reached around 114 orders per day in 2022. In the same year, the consumption of cappuccinos and lattes increased by 30% in Canada, thus boosting coffee sales and encouraging outlets to expand to cater to consumer demand.
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Rising prices and increased demand boost revenues at cafes and bars
- The consumption and price of coffee steadily rose over the review period. Americans' preference for coffee has grown over the last decade. Since 2015, coffee consumption in the United States has increased by 5-10%. Around 60% of Americans drink coffee daily. American women spent an average of USD 2,325 per year on coffee, and American men spent around USD 1,920 per year. Also, cafes are expanding their menus or specialty drinks that are more expensive than traditional coffee or tea. The increasing popularity of third-wave coffee shops, which focus on premium coffee and artisanal brewing techniques, has contributed to the growth of specialty coffee.
- Thus, the average order value for cafes and bars increased by 16.33% from 2017 to 2022. The rising inflation rate increased by an average of 3-4% from 2017 to 2022, and the number of orders per year increased by 41.11% from 2020 to 2022. Popular coffee and drinks preferred by Americans include Cappuccino (USD 4.5 per cup), Latte (USD 5 per cup), Americano (USD 3.8 per cup), Hot Chocolate (4.75 per cup), Orange Juice (USD 6.5 per glass), Craft Beer (USD 11 per 16 oz), Wine (USD 10 per glass), Cocktails (USD 15 per glass of 1.5 oz), and Whiskey (USD 14 per peg).
- In the United States, alcohol sales increased by 22.4% in 2022 compared to 2020, of which more than 50% of sales were generated through bars, pubs, and nightclubs. Consumers in the country prefer local tastes and are willing to pay more for premium-crafted beers. Thus, the bars & pubs segment is likely to remain strong during the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Specialty coffee shops indicate the growth in demand for high-quality coffee in Mexico
- Chocolate croissants, scotch, and cocktails are popular food and drink items at cafes & bars in Canada
- Growing coffee culture in the United States fuels cafes & bars' growth, driven by chained outlets
- Consumer demand for innovative food and cocktails drives café and bar market growth
