Growth Strategies in Cafés/Bars:Getting the Experience Right

Introduction

Scope

Key findings

A foodservice continuum, with growing overlap

Alcohol consumption figures reveal a changing market

Product diversity is key

Global Overview

Cafés/bars now a US$450 billion global category

A 2-year sales slump goes on

Cafés/bars worst-performing category in 2010

Western Europe still crucial

Weak performance in Europe drags down overall numbers in 2010

Bars close to 75% of global sales

Bars/pubs predominate, but significant variance exists

Coffee shops, juice bars key bright spots

Bars and pubs drive demand in largest markets

Grim showing for Eastern Europe markets

A mature category

Competitive Landscape

Specialist coffee shops lead chained players

Independents dominate, with one exception

Chained cafés/bars a limited category

A UK/Japan phenomenon

Chained cafés a semi-captive niche

Localisation vs standardisation

Category Analysis

Innovation picks up, yet remains elusive for many

Specialist coffee shops continue to grow

The power of Starbucks

New entrants emerge in coffee shops

A global growth story

UK, US, and Japan key to largest branded coffee shops

Five coffee shops to watch

Select few markets drive juice/smoothie bar sales

Largest juice/smoothie bars markets reveal interesting mix

US chains dominate juice/smoothie bars

Egypt’s independent juice sellers a powerful force

Bars/pubs, cafés

Bar/Café split reveals strong regional differences

Bars a major component of traffic in several markets

Cafés drive foodservice demand in Mediterranean

Food sales vary significantly

JD Wetherspoon navigates a difficult operating environment

Three key growth drivers

Category blurring expected to intensify

Global Prospects

Slow growth ahead

No let-up in Western Europe

Out with the old, in with the new

The entire industry, in essence

Highly-traditional cafés/bars remains in flux

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