Starbucks workers 🤝 steelworkers. Plus, the United States coffee market heats up, and young Vietnamese entrepreneurs are leaving their jobs to open coffee shops.
‘Value Becomes Competition Hot Spot in $54bn US Branded Coffee Shop Market’ – via World Coffee Portal
According to a report conducted by World Coffee Portal, the branded coffee shop market in the United States is expanding: although the US isn’t the “branded coffee shop capital of the world” (that would be China), shops like Starbucks, Dunkin’ and Panera grew their market value in the country by 7.4% over the last 12 months.
But increasing costs and competition are pushing more brands to focus on value to attract new customers.
The report says there are 42,773 branded stores across the country and identified 500 “unique branded chain concepts.” This number includes familiar chains like the aforementioned Starbucks and Dunkin’, but also includes new entrants like Black Sheep Coffee from the UK and Italy’s Café Barbera. The number also includes 44 independent companies that “graduated to branded coffee chain status after surpassing five outlets.”
The report also broke down pricing trends. Chains have raised prices over the past year—the average 16-ounce latte is now more than $5. World Coffee Portal notes that “value has become a key battle ground in the US, with many operators exercising caution on further price rises as consumers continue to cut back on discretionary spending.” For example, Starbucks and Dunkin have both introduced cheaper food and drink options to their menus in response to competition from lower-cost rivals.
Industry leaders surveyed for the report are “cautious” and “gloomy” about the short-term future for coffee chains. Less than 40% think things will improve over the next twelve months as businesses face rising costs, lower consumer confidence and increased competition. Longer term, however, they are more bullish, with 82% believing that “there remains significant growth potential for branded coffee chains in the US.”
‘Vietnam’s Young Coffee Entrepreneurs Brew Up a Revolution’ – via MSN
Generally speaking, most parents wouldn’t be too keen on their child quitting a lucrative investment banking job to open a coffee shop. And that’s exactly what happened to Vu Dinh Tu, who opened a coffee shop called Refined in Hanoi, Vietnam.
“At first my family didn’t know much about it,” Tu told Alice Philipson for the international news agency AFP. “Gradually they found out — and they weren’t very supportive.”
Tu is one of a growing number of young Vietnamese entrepreneurs “using espressos to challenge family expectations around work,” Philipson writes.
“Cafes have become a way to break norms around family pressure to do well in school, go to college, get a degree… work in something that is familiar and financially stable,” anthropologist Sarah Grant from California State University told Philipson.
Vietnam is the world’s second-largest coffee exporter, and coffee is a big part of the country’s culture. Its cafe industry is growing fast, mostly comprised of local startups—foreign brands have struggled to gain a foothold. Starbucks accounts for just 2% of the market, which Philipson notes could be due to its focus on arabica beans rather than the robusta that is most popular in Vietnam.
Tu has been successful in his cafe business endeavors. Refined now has four locations in Hanoi, and he says that his parents have begun to come around. He plans to open more shops and hopes more people earnestly pursue coffee: “I want to build the mindset that this is a serious career,” he said.
More News
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‘Sustainable Harvest Announces Location for Let’s Talk Coffee 2025’ – via Global Coffee Report
‘Can You Really Find Good Coffee Shops By Reading Two-Star Reviews?’ – via Sprudge
‘Green Bean Exports Top 110 Million Mark for the Second Time: ICO Report’ – via Global Coffee Report
‘Is Starbucks Affordable? Not According to This Survey’ – via Restaurant Business Online
‘Minnesota Company Sues TreeHouse Over Pod Production Secrets’ – via Daily Coffee News
‘Best of Yemen 2024 Auction Sets New Global Benchmark’ – via Global Coffee Report
The Week in Coffee Unionizing
Unionized workers at a Starbucks in Waterloo, Ontario, have secured a collective bargaining agreement with the company, becoming the first of five Ontario locations represented by United Steelworkers (USW) to win a contract with the coffee giant.
Workers voted to join USW in May 2023, and the bargaining process was described as “largely cooperative” by director Kevon Stewart. “This arbitration decision is a huge win and a positive outcome for our members at Starbucks,” Stewart said in a press release.
Negotiations hinged on whether unionized workers can “borrow” shifts from other locations: Starbucks wanted to end this process for unionized employees, but the arbitration board sided with USW. “While the bargaining process was largely cooperative, we are glad to have reached a resolution that protects our members’ rights and scheduling flexibility,” Stewart said.
Stewart noted that the agreement sets a strong precedent for bargaining with the other unionized stores in Ontario and across Canada. “We look forward to continuing a productive relationship with Starbucks as we work towards fair contracts for workers,” Stewart said. “This decision is a step towards ensuring better conditions for employees, and we remain committed to standing up for their rights.”
Is Coffee Good For You?
Can you drink coffee while pregnant?
This question comes up often and has been the subject of much study (like most things coffee-related). Both Britain’s NHS and the American Pregnancy Association say you can drink coffee, but advise against drinking more than 200mg of caffeine per day.
However, an analysis of observational studies published in BMJ Evidence Based Medicine found “no safe level of caffeine consumption” during pregnancy because of risks including miscarriage and stillbirth.
In the past, coffee consumption during pregnancy has been found to affect brain development in utero. However, a new study from the University of Queensland in Australia failed to find any link between drinking coffee while pregnant and neurodevelopmental difficulties in children.
For the study, published in Psychological Medicine, researchers conducted a genetic analysis of data from tens of thousands of families in Norway. “Our study used genetic data from mothers, fathers and babies as well as questionnaires about the parents’ coffee consumption before and during pregnancy,” said co-lead author Dr. Gunn-Helen Moen.
“The participants also answered questions about their child’s development until the age of 8, including their social, motor and language skills. Our analysis found no link between coffee consumption during pregnancy and children’s neurodevelopmental difficulties.”
The researchers still recommend following the advice of healthcare providers about how much caffeine to consume during pregnancy and point to studies that have shown caffeine can adversely influence other aspects of fetal development.
Beyond the Headlines
‘What Is The Best Coffee Song Of All Time? We Have Some Thoughts’ by Jackson O’Brien
‘Surviving a Sales Slump’ by Michael Butterworth
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