Coffee House Business – The New Social Beverage Of Choice

The coffee house business is the second most profitable business after the petroleum industry, experiencing tremendous growth over the last few years. Coffee has in fact become the world’s most popular beverage and coffee houses have been around for over 450 years throughout Europe.

In the 1960s the coffee house appeared in the Americas with folk music in tow creating a desire for fresh coffee beans that people could take home and brew and drink at home. As a result prior to the 1970s the majority of coffee drinkers still drank their coffee at home either brewing it from the canned varieties of coffee or at restaurants.

Coffee drinking experienced a brief decline in popularity at the end of the 1970s due the negative publicity related to coffee and the effects of caffeine, but since the 1990s the trend in the popularity of coffee has been upward.

Today there are more than 150 million people who drink coffee on a daily basis, with over 30 million drinkers of gourmet coffees such as specialty blends of coffee, mochas, lattes, cappuccinos, espresso based beverages, frozen coffee beverages, and iced coffee beverages.

In many social situations coffee has replaced alcohol as an acceptable beverage for social or business occasions, since coffee is acceptable any hour of the day not just for cocktail hour.

Coffee is considered a great accompaniment to socializing with friends, conversation and listening to live music, it goes well with lunch and as a quick pick me up for getting through the rest of the day at work.

The Coffee House Business Competition

The biggest competition may be large chains but the smaller independent business has a level of flexibility that the larger chains don’t have. The marketing expertise of the large chains in educating the public about the benefits of drinking coffee can be a plus for the small business since a small business can make capitalize on the marketing of the larger coffee shops.

Although a smaller business cannot compete with the marketing dollars spent by the larger chains, the smaller coffee shop can still have a successful business through top quality coffee products and having top quality staff and presentation of the business’s persona. Coffee is one of those drinks you can get just about anywhere, but not everywhere is a competitor. The most competition in addition to the large coffee shop chains may be other coffee shops, retail coffee and tea stores, bakeries and donut shops, and mobile coffee/espresso carts.

Coffee House Business Trends

• Improvement in product quality of unblended and blended coffees developing more solid niches based on the regions where they are grown not just the country of origin. There will be more flavored coffees, more decaffeinated coffees, and an increase in organically grown coffees.

• There will be an increase in coffee cafes which include espresso carts and espresso bars.

• Retail roasters will continue to fine tune particular types of bean for a specific market or product line.

• Consumers will continue to purchase from both specialty coffee stores and those that sell coffee in bulk.

• Consumption of iced and frozen coffee will continue to rise.

Paying attention to the trends and market leaders can help anyone wanting to enter the coffee shop business to make decisions that lead to success.

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For some great information on starting a cooking business including the coffee shop business a great reference is:

• Restaurant and More by Entrepreneur Magazine

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