III. Industry Analysis
[Company Name]directly or indirectly competes with all foodservice providers nearby our Cafe that offer similar dining experiences. Competition will come from supermarkets, restaurants, Cafes, bakeries and other retail establishments. Direct competition will come from companies offering brewed coffee and grab n’ go food productssimilar to [Company Name].
Industry Statistics & Trends
The Cafe industry is set to surge ahead over the next five years. The industry has plenty of room for growth and aggressive store openings by major players is set to continue as consumer demand increases. The broader economic environment is expected to improve during the outlook period, meaning growing consumer spending and confidence will spur revenue growth. Industry revenue is expected to grow 3.0% per year on average over the next five years . This is a slightly slower rate than the previous five years, but much stronger than GDP growth over the same period. In the next five years, the industry is forecast to earn $8.5 billion in revenue and account for a greater share of the broader food service sector.
The U.S. economy’s continued recovery over the next five years will play a major role in industry growth. Consumer spending will increase at an annualized 3.1% over the next five years as per capita income and confidence improves. This will stimulate spending on out-of-home meals and enable consumers to splurge on more expensive menu items. While value will remain an important factor for most consumers, the trend toward premiumization within the entire food service sector will continue. As consumer awareness about the nutritional content of products becomes more widespread, bakery cafes will continue to include more healthy offerings. Healthy, high-quality cuisine will become the norm and consumers with higher incomes will be prepared to pay a premium for it, which will further assist industry revenue