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Bakery Cafes in the US Industry Market Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Oct 09, 2013, 02:00 ET

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The industry has surged ahead of the food service sector, driven by changing consumer preferences.

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Los Angeles, CA (PRWEB) October 08, 2013 -- The Bakery Cafes industry is heating up as consumers warm to the idea of moderately priced, high quality menu offerings. Bakery cafes specialize in serving flour-based baked goods and complementary food items such as sandwiches, salads and soups for immediate consumption. The industry has surged ahead since the recession and outperformed the overall food service sector, driven largely by changing consumer preferences. Consumers are increasingly demanding healthy, gourmet and custom-made cuisine at an affordable price. Based on these trends, industry revenue is expected to grow at an impressive rate of 6.5% per year on average over the five years to 2013. As operators add more stores in 2013 and consumer awareness of this relatively new segment increases within the food sector, industry revenue is expected to jump 7.2% in 2013 to $7.1 billion.

According to IBISWorld Industry Analyst Andy Brennan, "The industry has undergone heavy consolidation over the past five years as major chains such as Panera Bread, Einstein Bros. Bagels and Tim Hortons have expanded rapidly." The franchise model most of the major players operate under has accommodated the rapid growth in establishments as operators require less capital and take on lower risk while growing market share. A number of small, independent bakery cafes which have traditionally serviced local markets have been pushed out of the industry, unable to compete with the geographic reach and marketing spend of the major chains. However, many savvy independents have made profitable businesses with niche, high-end offerings such as cupcakes or macaroons.

The Bakery Cafes industry is expected to continue on a growth trajectory over the next five years as many of the same trends that have influenced the industry continue. Economic fundamentals such as consumer spending and disposable income are anticipated to perform strongly over the outlook period, creating a favorable operating environment for bakery cafes. "To avoid price-based competition and protect profit margins, operators are expected to target markets with greater potential for growth, such as the breakfast crowd," says Brennan. The breakfast market has traditionally been less competitive, and bakery cafes are expected to bolster sales by offering a greater range of breakfast sandwiches, bagels and coffee.

The Bakery Cafes industry exhibits a medium level of market share concentration. As the largest industry operators continue to expand their market presence, smaller operators are expected to be forced out of the market place. The emergence of "fast-casual" dining poses a threat to Bakery Cafes. Small local bakery cafes are expected to struggle the most in this industry, and IBISWorld expects that they will continue to fend off large operations to maintain their markets

For more information, visit IBISWorld’s Bakery Cafes in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld.

Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189.

IBISWorld industry Report Key Topics

This industry comprises companies that produce food that is flour-based in an on-site oven for immediate consumption. Typical products include bread, cakes, pastries, pies and bagels, as well as complementary products such as sandwiches, soups and salads. Purchases may be consumed on-site or taken to go.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Gavin Smith, IBISWorld, +1 (310) 866-5042, [email protected]

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