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Cafes and coffee shops are stealing coffee customers from restaurants


Competition remains fierce in specialist coffee shops in Canada, with this channel also facing strong competition from fast food, with players such as Tim Hortons having a strong focus on quality.

by Euromonitor Intl.


  • The growing need to maintain a point of difference is meanwhile resulting in established players rethinking their strategies. New store concepts are notably being used to attract consumers. Second Cup continued its rebranding in 2015 under the guidance of CEO Alix Box, who formerly worked in marketing for Starbucks and Holt Renfrew. The chain is undergoing a three-year organisational transformation that started in 2013, with its Store of the Future concept offering sleek décor and a “Steampunk” coffee brewing system. continuing to be rolled out across its chain. 2015 also saw the chain introduce a customer loyalty programme and a reduced sugar range of cold drinks.


  • Starbucks remains the leading player in overall cafés/bars, with this company accounting for 19% value share in 2015. This is thanks to the company’s strength in specialist coffee shops, where it accounted for over 49% value share in the year. Starbucks was impacted by the failure of Target Canada in 2015, with this mass merchandiser chain having featured Starbucks concessions in around 145 stores. This resulted in 3% outlet volume decline for Starbucks in 2015.


  • There is expected to be an ongoing focus on reinvention among the leading players in specialist coffee shops, with Starbucks and Second Cup also the leading chains in overall cafés/bars. Second Cup is expected to continue to roll its more modern and premium store concept out across its chain in the first half of the review period. Starbucks is however set to see more dramatic changes, with the introduction of a wine, beer and tapas menu at night, alongside an increase in the number of drive-through locations and also the introduction of home delivery.