MINTEL report_Research - Contents: Coffeehouses and Donut...

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                           Contents:  Coffeehouses and Donut Shops - US - July 2008 - Executive Summary  [Report Section]  Coffeehouses and Donut Shops - US - July 2008 - Competitive Context  [Report Section]  Coffeehouses and Donut Shops - US - July 2008 - Analysis: Starbucks  [Report Section]  Coffeehouses and Donut Shops - US - July 2008 - Analysis: Dunkin’  Donuts  [Report Section]  Coffeehouses and Donut Shops - US - July 2008 - Interest in  Coffeehouse Attributes  [Report Section] This report is supplied in accordance with Mintel's terms and conditions. © Mintel International Group Limited.
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Coffeehouses and Donut Shops - US - July 2008 Executive Summary   In a nutshell Buoyed popularity of the “coffee culture” market growth has been healthy for  coffeehouses and donut shops.  All of the leading companies have seen sales grow, with the exception of Krispy  Kreme , which has tumbled from its earlier heyday, but is undertaking restructuring efforts that  appear to be helping the company. Of the top six companies, Starbucks and Dunkin’ Donuts are by far and away the  leaders , with a combined 90.3% share of big-six sales in 2007.  In 2008 Starbucks has stumbled , with sales on the decline, which could potentially  result in market share growth for the smaller coffeehouse chains and independents, and tapered  growth ahead.  Dunkin’ Donuts is focusing on growth , and with Starbucks closing stores, Dunkin’  stands to narrow the margin on market share between the two companies. Systemwide sales at the top six coffeehouses and donut shops grew 30.4% during 2005-07, from  $9.65 billion to $12.6 billion (Starbucks’ share of sales are from company-owned units only).  Competitive context  Cannibalization onus finally arrives.  The coffeehouse and donut shop industry need only look  at themselves to see one of the greatest competitive threats – cannibalization.  Starbucks (which plans on closing 600 stores in 2008) and Krispy Kreme (which has  gone through a gut-wrenching reorganization) serve as examples of what can happen when an  overly ambitious expansion plan backfires.  QSRs pose a significant threat  to the coffeehouse and donut shop segment, as chains ramp up  breakfast and coffee offerings and budget-conscious consumers head to the spot where they  know they can get a great value. Coffee and coffee drinks are generally cheaper at QSRs, and  many are now offering substantial breakfast value menus with items priced around $1.00. Healthy options are notably absent on QSR morning menus
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MINTEL report_Research - Contents: Coffeehouses and Donut...

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