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Specialist coffee shops
in Australia see vigorous expansion
Author: Olivier Hofmann
3
Feb 2006 Specialist
coffee shops in Australia are becoming a lucrative sector, as a result of a growing
coffee culture and increasing franchising opportunities, according to a new report
by Euromonitor International – “Consumer Foodservice in Australia”.
In 2004, the number of outlets in Australia grew by 25%, the number of transactions
through coffee shops grew by 7% and value sales grew by almost 29%. Australia's
strong coffee drinking culture has heavily influenced growth in specialist coffee
shops, especially among the younger generation. Coffee drinking has become an
integral part of the modern lifestyle in Australia and specialist coffee shops
have become more than just a place for coffee. Increasingly, coffee shops serve
as places to meet for business and pleasure - a location for peace and quiet away
from home and office. It has also become apparent that consumers are willing to
pay more for an interesting view. This resulted in strong growth in the number
of specialist coffee shops located in places overlooking parks and gardens, the
beach, and main thoroughfares. The
major chains and many of the independent specialist coffee shop outlets that operate
in Australia also engage in promoting premium varieties of coffee by educating
their customers about the different coffees that are available. This strategy
has led to increased sophistication among coffee drinkers and accounted for the
disproportionate rise in the value sales of specialist coffee shops, compared
to the number of transactions in 2004. The
popularity of franchising as a business opportunity in Australia has also had
a significant impact on the number of chain specialist coffee shops, such as Gloria
Jean's and Coffee Club, which expanded mainly through franchising. Euromonitor
International's research shows that the Gloria Jean's chain had the largest increase
in outlets in 2004, thereby boosting its market share from 28% in 2003 to 37%
in 2004. The company is also planning to expand its operations globally. Euromonitor
International's Consumer Foodservice in Australia report offers a comprehensive
guide to the size and shape of the market at a national level. It provides foodservice
sales, the number of outlets and the number of transactions by sector, allowing
you to identify the foodservice sectors driving growth. It identifies the leading
companies, the leading brands and offers strategic analysis of key factors influencing
the market - be they eating habits, lifestyle changes, tourism spending or legislative
issues. Forecasts to 2009 illustrate how the market is set to change. | 
