Coffee franchise Market Expected to Reach $200.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Coffee franchise Market," The coffee franchise market was valued at $90.7 billion in 2021, and is estimated to reach $200.3 billion by 2031, growing at a CAGR of 8.3% from 2022 to 2031.

Due to the success of the tested business ideas, there is less risk involved in owning a franchise of a well-known, established company in the coffee franchise market. Franchisees have a greater success rate, according to a recent study and this factor tends to contribute in the coffee franchise market trends. A franchise business has an 80% probability of surviving, but an independent business has a 20–30% chance. A coffee franchisee for a well-known company has a following of devoted customers. Franchisors have to use half of its marketing money to promote coffee shops if one chooses to become a franchisee. The brand name and trademark will draw customers to coffee franchisees, hence contributing to the coffee franchise market growth globally. 

Coffee franchises are well-liked due to their well-established business models, recognized brand names, built-in clientele, and sincere mentoring, training, and support, and likely contribute towards demand in the coffee franchise market forecast period. Due to the anticipated increase in metropolitan areas, franchisees prefer to open coffee shops there. Rural locations offer untapped potential for growing the coffee franchise sector. Likewise, a substantial section of the inhabitants in rural areas affords industry space for expansion. The well-known rival has a great deal of potential to offer a reachable product to distant parts of the globe. 

The coffee franchise market is segmented based on delivery type, cuisine, and region. Based on delivery type, the market is categorized into dine-in and dine-out. According to the cuisine, the coffee franchise market is fragmented into lunch, brunch, and coffee & bar. Region-wise, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, Switzerland, and the rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, and the rest of Asia-Pacific), and LAMEA (Brazil, South Africa, UAE, Argentina, Saudi Arabia, and the rest of LAMEA).   

By delivery type, dine-in had the largest coffee franchise market share in 2021 with a CAGR of 8.2%. In the coffee franchise sector, the quality of the food and beverages greatly influences how customers relate to the brand. Most of the market's patrons are pulled in by the deliciousness and high caliber of the cuisine. Also, good food can compensate for any shortcomings in the dine-in client experience. Also, a coffee franchise's level of customer service has a significant impact on customers' choices. Coffee franchise firms differentiate themselves from one another by cutting down on the time needed to make orders and deliver them to consumers on time. The dine-in portion of the coffee franchise market is therefore quite popular. 

By cuisine, the coffee & bar had the highest coffee franchise market size in 2021 i.e., $42,601.2 million in 2021, and is expected to reach $96,826.7 million by 2031 at a CAGR of 8.6%. The specialist coffee franchisees of the coffee & bar division produce specialty drinks such as espressos, macchiatos, and americanos as well as different roasting and preparation methods for coffee. Contrarily, cafés often offer food as their main course in addition to a few coffee beverages. Also, they are more likely to offer options for full-service meals. Due to its various benefits, including its capacity to boost productivity and strengthen working relationships, coffee is extremely popular. The comfort and relaxation that coffee & bars provide is one of the main factors influencing the expansion of the coffee franchise industry. The demand for coffee and bars is therefore anticipated to increase in the predicted year. 

By region, Asia-Pacific holds the largest share in 2021 i.e., $29,491.2 million in 2021, and is expected to reach $70,898.0 million by 2031 at a CAGR of 9.2%. Also, as more people desire for cozy social situations, there has been an upsurge in the demand for coffee franchises. The warmth and comfort it may offer is another important element that has contributed to the coffee franchise's enormous adoption over the past 10 years. This impression is strengthened when comparing coffee shops to rival establishments like eateries, bars, and fast-food chains. Also, coffee franchises provide a distinctive, tranquil setting where people may assemble with their loved ones to enjoy hot beverages and mouthwatering cuisine. As a result, coffee franchises can now find a rich market in the Asia-Pacific region. 

The major players operating in the global coffee franchise market analysis are Nescafe Coffee Shop, Café Coffee Day, Starbucks, Barista, Frespresso, Coffee-bike, Brewberrys Cafe, Euro Café, Ellianos Coffee, Café Barbera, Ziggi’s Coffee, Coffee Beanery, Dunn Brothers Coffee, The Human Bean, Xpresso Delight, Cafe2u, Biggby Coffee, Tim Hortons, Bottoms Up Espresso, Aroma Joe’s Coffee, Ritazza, Pacific Coffee, Greybox Coffee, Fisheye Café, Esquires Coffee, Costa Coffee, Gloria Jean’s, and Michel’s Patisserie. 

Key findings of the study  

• By delivery type, the dine out segment is anticipated to grow at a CAGR of 8.7% during the forecast period.   

• By cuisine, the coffee & bar segment is estimated to witness significant growth, registering a CAGR of 8.6% during the forecast period.   

• By region, Asia-Pacific was the dominant region in 2021, occupying a major share of the market.