US branded coffee shops will only return to pre-pandemic sales levels next year after the COVID-19 pandemic wiped out nearly a quarter of their turnover last year, according to research and consultancy firm Allegra World Coffee Portal.
The firm estimates that sales at US branded coffee shops, which include household names such as Starbucks, JDE Peet's and Dunkin' Brands, fell by 24% last year to $36 billion, and will only grow to $40 billion this year, which is below 2019 levels.
It says that 208 out of a total of 37,189 branded coffee stores closed shop permanently in 2020, which is equivalent to 0.6% of the market.
"Light At The End Of The Tunnel"
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"The US coffee shop market is enduring the worst trading environment in living memory. However, with a changing political situation, mass vaccinations and operators rapidly adapting with new trading formats, there is light at the end of the tunnel," Allegra Group CEO Jeffrey Young said.
"We expect trading to begin stabilising from summer 2021, however, it will take a number of years for operators to fully readjust to the 'new normal'," he added.