Bakery Cafes in the US Industry Market Research Report Now Available from IBISWorld

Share Article

The industry has surged ahead since the recession and outperformed the overall food service sector, driven largely by changing consumer preferences, and the industry is expected to continue on a growth trajectory over the next five years as consumer awareness of this relatively new segment increases within the food sector. For these reasons, industry research firm IBISWorld has updated a report on the Bakery Cafes industry in its growing industry report collection.

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

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 a strong rate of 7.2% per year on average over the five years to 2014. As operators add more stores in 2014 and consumer awareness of this relatively new segment increases within the food sector, Bakery Cafes industry revenue is expected to rise 4.7% in 2014 to $7.6 billion.

According to IBISWorld Industry Analyst James Crompton, “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 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,” says Crompton. 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. 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.

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.

Share article on socal media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
+1 (310) 866-5042
Email >
Visit website