Silver Chef Hospitality Report - Coffee Trends

SILVER CHEF
HOSPITALITY REPORT

Coffee Shop Trends

WHO IS SILVER CHEF

With nearly 30 years’ experience and industry knowledge, Silver Chef is Canada’s
only dedicated provider of flexible rental funding for hospitality equipment.
Our Rent-Try-Buy finance solution provides access to quality coffee equipment
enabling business owners to preserve their hard-earned capital and focus
on growing their business. The Rent-Try-Buy model has helped over 18,000
business owners live their dream to date.
We look to our customers’ future business potential, instead of just personal
history, and support people in setting up and growing their business with the
equipment they really need.

COFFEE THROUGHOUT CANADA

$10.2

billion

generated by coffee shops annually

7,504

coffee shop businesses nationally

6% increase 101112 1 2 65%
93
in fresh coffee bean 87 6 54 drank coffee
sales in the last year
24in the last

hours

3.2 CUPS 5.1%
CONSUMED
PER DAY projected annual
industry growth till 2020

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COFFEE SHOP TRENDS

65% 22%

OF PEOPLE of people

drink coffee daily prefer to buy from

SPECIALITY

coffee shops

INDUSTRY PROFIT 14

6.6=%MARGIN billion

OF REVENUE cups of coffee

2 consumed annually

CONSUMPTION BY TIME OF DAY

% of Consumers who drink coffee at different times of day

16% 11%
in the
afternoon in the
evening

25% 85%

in the morning of people drink
after breakfast coffee in the morning

37% Consumption in

of people prefer to 10%restaurants has grown
consume coffee in
a coffee shop in the last 5 years.

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WHAT’S DRIVING GROWTH?

DEMOGRAPHICS SPECIALITY COFFEE –
FASTEST GROWING SEGMENT.
• THE 18-30 AGE BRACKET ARE THE
INDUSTRY’S HIGHEST SPENDERS. 4.4% annual growth in the number of coffee
shops will be primarily driven by a segment
• 35.8% OF DEMAND COMES FROM THE known as the‘3rd Wave’. This segment can
HIGHEST INCOME EARNERS. be differentiated through:

CONVENIENCE • More premium coffee such as high
quality espresso, as well as siphoned
Convenience, value for money and time and filtered coffee beverages.
are strong drivers of the modern coffee
shop customer. Busier lifestyles, higher • Premium pricing from increased
incomes and longer work hours are driving popularity of FairTrade and Organic
demand for convenient food and beverage beans.
across all hospitality sectors. Coffee shops
which adopt service structures that cater to • Positioning coffee as an artisanal
the time poor will reap the benefits. product whereby origin of the bean is
important, much like wine.

COFFEE SHOP REVENUE GENERATORS

51% coffee 12% other
34% food: donuts, beverages:
cookies, pastries shakes, teas,
3% other: packaged hot/iced
coffee, drinkware chocolate

4 Hot drink sales in coffee shops

“ ”will grow 8.5% by 2019

The coffee culture is ingrained into lifestyles of many
Canadians. This culture has driven growth of coffee
shops faster than all other hospitality sectors.

MARKETING

SOCIAL MEDIA

• 50% of small business owners
reported getting new customers
though Social Media.

• 51% of Facebook users and
64% of Twitter users are more
likely to purchase from brands
that they know.

Coffee shops don’t need to
spend much for results.

• 60% of small businesses spend
less than $100 on Social
Media.

• 74% of small businesses don’t
employ anyone to manage
their Social Media.

yelp

THE IMPORTANCE OF “ ”Effective Social Media marketing is
MOBILE DEVICES about engaging your audience into
conversation.
78% OF LOCAL, MOBILE SEARCHES HOW DOES YOUR COFFEE SHOP RANK
RESULT IN AN OFFLINE PURCHASE IN THE TOP 3 ONLINE LISTINGS?
• 80% of people use smart
Yelp Urbanspoon Tr ip Advisor
phones for internet searches.
• People are 67% more likely to Vancouver 4,943 6,400 1,964

buy a product if their mobile Toronto 13,454 14,019 3,820
friendly experience is positive.
• 65% of Facebook users, 80% of Calgary 3,515 3,471 1,401
Twitter users and 80% of Pinterest
are on mobile. Montreal 7,040 6,199 2,510
Following Google’s recent mobile
friendly update, mobile friendly Yelp, Urbanspoon and Trip Advisor are currently the most
websites are all but necessary favoured online listings for hospitality businesses
for coffee shops to be found and
engage customers online.

6

CUSTOMER EXPERIENCE

LOYALTY PROGRAMS REUSABLE CUPS

In the midst of an industry with growing Growing environmental concerns will
brand competition, growing and marketing increase the popularity of reusable cups.
to the network of faithful customers has a As people become more inclined to
new level of importance. Customers can adopt environmentally friendly habits,
now receive rewards via email, apps, social coffee shops that endorse reusable cups
media and on their smart phones. will attract goodwill and loyalty. Reusable
cups will also position coffee shops to:
28% of loyalty-club • Save on supplies and trash hauling.
• Sell cups and add another line of
members are likely
to decide where revenue to your shop.
to dine based on • Advertise for free by showcasing your
who they have a
membership with. brand.
• Drive repeat business and customer
77% of loyalty
loyalty with reduced prices on refills.
members say
that e-mail is their WIFI
preferred method
of receiving reward Access to internet around the clock is a
communications. simple reality of today. Additionally, coffee
shop patrons are a combination of
70% would be regulars who want a cup of coffee, college
students who want a hip place to work
more likely to sign up and displaced office workers with flexible
if they knew that their working arrangements.
personal information The need for high-speed internet access
is protected. has been proven as an experience touch
point again and again by giants such as
Starbucks.
As the industry progresses, coffee shops
who value the customer experience will
need to make certain that their customers
can access the web effortlessly and quickly.

7

OPPORTUNITY
INTERNATIONAL

Silver Chef are proud partners of Opportunity International Canada,
who empower people living in poverty by providing microfinance loans.
Just as we provide customers a chance to live their potential through
our funding model, Opportunity International gives those living in
poverty a helping hand to transform their lives, allowing them to
maintain their dignity and create their own success story.

Empowering people in poverty

“ ”to create their own success.

8

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CONTACT US TO FIND OUT MORE

Call Email Find out more online at
TF 1-844-831-8345 [email protected] www.silverchef.ca

Silver Chef Canada

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887 Great Northern Way,
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