U.S. Coffee Chains Face Two-Year Recovery From Covid Sales Hit
- Industry’s $11.5 billion sales plunge wiped out 24% of market
- Allegra Group sees return to pre-pandemic sales levels by 2023
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U.S. coffee chains will take two years to fully recover from an $11.5-billion sales plunge that wiped out a quarter of their market in a year when Covid-19 kept customers from cafes, according to market researcher Allegra Group.
The U.S. branded coffee chain segment, which is dominated by Starbucks Corp. and Inspire Brands Inc.’s Dunkin’ Donuts, saw sales plunge 24% to $36 billion in the past 12 months predominantly due to Covid-19 disruptions, the London-based group said Monday in a report. The industry will return to pre-pandemic sales by 2023, Allegra said, adding that 65% of surveyed U.S. industry leaders say trading conditions will improve during the next 12 months.