Coffee Hits All The Right Spots

It can be said that coffee definitely hits the spot. In fact coffee hits a lot of spots! People all over the world enjoy a daily cup of coffee. Japan, for example, ranks number 3 in the world for coffee consumption. There are over 10,000 coffee shops and kiosks to cater to the needs of Tokyo alone. The Japanese even use coffee to get rid of spots! For reducing wrinkles and improving their skin, the Japanese have been known to bathe in coffee grounds fermented with pineapple pulp.

No matter how you like your java, be it rich, dark espresso, a frothy cappuccino or latte, iced or hot; you will find plenty to tempt your taste buds when it comes to coffee selections. In fact, specialty coffee sales are increasing by 20% per year and account for almost 8% of the 18 billion dollar U.S. coffee market. Statistics show that among coffee drinkers, the average consumption in the US is around 3 cups of coffee per day. Also, studies find that over 50% of the population, equivalent to approximately 150 million Americans, drink espresso, cappuccino, latte, or iced coffees.

There are currently around 35,000 coffee shops around the United States, with an average $30 billion a year in sales. Based on market research, there will be approximately 42,000 or more independently owned coffee shops in the US by the year 2011. An enterprising business person should look at the gourmet coffee business as a golden opportunity.

Gourmet coffees, also known as premium or specialty coffees carry an impressive gross profit margin, compared to regular brewed coffees. For example a frothy espresso based drink may retail in a coffee shop for an average price of $2.95, while the average price for brewed coffee is $1.35. Your gross profit margin is approximately 75% on each, thus you would make $2.21 on a frothy creation and only $1.02 on a brewed cup. Equipment might run you an additional $5,000; however, if you made an additional $1.33 per drink on 100 drinks per day, that equates to $48,500 per year in extra income.

The United States imports over $5 billion worth of coffee every year. Juan Valdez and his little donkey must be keeping very busy! Americans drink 460 million cups of coffee every day, which makes the United States the leading consumer of coffee in the entire world.

A scientific report from the University of California found that the steam rising from a cup of coffee contains the same amounts of antioxidants as three oranges. The antioxidants are heterocyclic compounds which prevents cancer and heart disease. Guess what! Coffee is good for you!

Approximately 90% of the American adult population drink some type of coffee product every day. Some people drink 2-3 cups or more a day. People who are getting hooked on specialty coffee drinks are rising every year. It is estimated that over 30 million American adults drink specialty coffee beverages daily; such as mocha, latte, espresso, cafe mocha, cappuccino or other frothy varieties either steaming hot or on ice.

Coffee sales are continually rising year after year. And so are the pricing modules! Coffee is the second largest commodity traded, next to oil. If you are looking for a business to get into, coffee is probably the best business for you to consider. Can you think of any other product that has such universal appeal, is easy to get into, and is relatively simple to operate?

July 01 2009 | espresso | No Comments »