Panera Bread, Starbucks, Dunkin’ Donuts: Some of the convenience-store industry’s biggest competitors lie in the bakery- and coffee-cafe segments of the restaurant industry. Thanks to technological advances, strategic menu development and even forays into packaged goods, they’re also seeing rising sales and patronage, according to Technomic.
To help c-store retailers stay competitive, CSP Kitchen analyzed the newly released 2016 Bakery & Coffee Cafe Consumer Trend Report from Technomic, a Winsight company and sister brand to CSP. Read on to learn seven ways the segments will continue to drive sales ...
Operators will spur food sales through convenience
A majority of bakery (71%) and coffee (85%) cafe patrons visit these locations at least monthly for beverage-only occasions, according to the Technomic 2016 Bakery & Coffee Cafe Consumer Trend Report. Affordability, quality and convenience are keys to driving more food sales, consumers indicate, and Technomic points to combo meals in particular as a crucial way to help beverage patrons make a food purchase.
Cold-beverage trends will keep growing
Technomic anticipates cold drinks will continue to permeate bakery- and coffee-cafe menus. Cold coffee drinks are especially appealing to younger consumers, who are particularly likely to say they are more interested in cold-brew coffee now than they were two years ago. Consumers in general indicate they prefer lemonade and smoothies as lunch or dinner options at both bakery and coffee cafes.
Alcohol-beverage programs will expand
While adult-beverage options are relatively rare at cafes today, expect to see the category proliferate in years to come. Roughly three-tenths of millennials would be more likely to visit cafes in the evening if they offered alcohol, according to the Technomic Bakery & Coffee Cafe Consumer Trend Report.
Packaged beverages will cater to convenience
Thirty-four percent of consumers say portability is very important when deciding where to purchase a beverage, according to the report, and about a quarter of consumers say they are interested in packaged iced coffee at cafes. Operators including Caribou Coffee, Peet’s Coffee & Tea and Stumptown are taking note, rolling out branded, ready-to-drink options for shoppers on the run.
Technology will propel sales
Mobile ordering, app-based loyalty programs and other tech amenities will increasingly drive sales in the bakery and coffee-cafe segments. It’s a movement propelled by Starbucks and Panera Bread and appreciated by younger consumers: More than a third of millennials say it’s very important that cafes offer the ability to preorder items for pickup.
Delivery and catering will rise in prominence
Expect the bakery- and coffee-cafe segments to leverage both third-party delivery services and catering opportunities to increase sales through off-premise ordering. Both appeal to younger consumers, according to the Technomic Bakery & Coffee Cafe Consumer Trend Report, as they become more accustomed to summoning restaurant meals to their doorstep.
New formats will broaden reach
Bakery- and coffee-cafe brands will continue to experiment with small-footprint, reduced-menu concepts to meet demand for quick and convenient coffee occasions. Look out for tech amenities such as ordering kiosks to further streamline the process. On the flip side, larger-footprint concepts, especially in urban markets, will focus on experiential attributes.