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Perhaps OT but how did you arrive at >over 220M cups purchased daily at coffee shops, cafes, bakeries and diners. Starbucks is the largest chain, but they only
by opportune 7y ago
Perhaps OT but how did you arrive at
>over 220M cups purchased daily at coffee shops, cafes, bakeries and diners. Starbucks is the largest chain, but they only process 2.5% of those daily sales.
220M is quite a lot for a single day, representing about 1 cup per day for roughly 80-90% of adults in the US. I could believe this if the statistic were "brewed" and included coffee bought in bulk from supermarkets/other suppliers and brewed at home or the office. Even if this metric is using "cup" as a unit of volume and not a single sale (since a venti coffee at starbucks is many cups) it still seems very high to me.
I guess this question is at least somewhat relevant since it's how you're pitching your app to investors and represents the size of the addressable market.
One other question: how do you plan to address competition from non-specialized food-ordering apps? My understanding is that food delivery/takeout and other order-ahead services often include exclusivity deals, and I could see many cafes and diners opting to choose a non-optimized ordering experience that allows them to sell and deliver food over one that primarily focuses on coffee.
- timgriffin77 7y agoGood questions all around! What's surprising is that the 220M figure only accounts for daily purchases. Americans actually drink over 400M cups of coffee every day. A cup is definitely an odd metric to measure by, it's just the simplest term to define a coffee or espresso-based drink. To clarify, this is measuring the U.S.-only, the global market is obviously much larger. I know it may seem high, but it's a lot easier to put into perspective that the average American over 18 years old drinks 2 cups of coffee per day. In terms of competition, because coffee is just now warming up to the concept of pick-up, and the majority of the order-ahead market is delivery-focused, we are at an advantage for optimizing that pick up experience and gaining traction from there. We partner with shops that offer every mobile ordering service, we partner with others that only want one - it'll certainly be something we keep an eye on as we grow.
- opportune 7y agoCan you say where you got the figure though, like which source or report?
- timgriffin77 7y agoAh, sorry about that. Yeah there are quite a few stats maintained on the ssca.org website. Harvard also maintains statistics about coffee consumption, and Huffington Post did a big expose on it, as well. There's also a lot of good information from the National Restaurant Association, Statista, Mordor Intelligence and Mintel.