Office commuters are trending up their morning caffeine routines
Image: Starbucks
On-the-go consumers are trending up their morning caffeine routines so they can ‘get up and go’ back to the work, well, that is, back to the office — something many have not done on a regular basis for quite a while.
A new report from market research firm Circana™, formerly IRI and The NPD Group, reveals an increased consumer appetite for specialty coffee, teas, and donuts as many employees return to the office post-pandemic.
The data highlights a 4% upswing in traffic for gourmet coffee and tea quick-service restaurants (QSRs), and a 3% rise for donut quick-service restaurants in September 2023, compared to the same month in 2022. Additionally, case sales by leading broadline distributors for quick-service gourmet coffee and tea operators rose by 15% in September versus the year prior, pointing to elevated consumer demand.
The rise in popularity of these specialty items is not only reflected in traffic and servings, but also in the expansion of quick-service restaurants selling these gourmet offerings. Unsurprisingly, driving the trend are gourmet coffee and tea shops, which, per Circana, witnessed a surge of 3,500 new locations in March 2023 compared to March 2022 as retailers catered to growing consumer demand.
“We’re seeing a notable increase in interest in these specialty items as consumers opt for on-the-go beverages and snacks while rediscovering their morning routines,” said David Portalatin, senior vice president and industry advisor, food and foodservice, Circana, in a statement. “With a rising number of employees returning to the office post-pandemic and the fall season, gourmet coffee, tea, and donuts offer a small sense of indulgence and convenience for busy consumers.”
The analysis from Circana found that specialty coffee segment (which included various flavours and lattes) experienced a 4% rise in popularity in September compared to the same month last year, emphasising consumers’ desire for new and unique taste experiences. Nearly half of all gourmet coffee, tea, and donut consumers (47%) purchased a pumpkin-flavoured coffee in September, highlighting the pivotal role of seasonal, limited-time offers in capturing consumer attention and loyalty.
The pumpkin spice latte has become a staple on coffee shop menus around the world and spurred many other pumpkin spice beverages. Fans crave the limited-edition autumnal flavour so much that rather than debut in the fall, pumpkin spice beverages hit coffee shops, cafés and QSRs in August, and the release date seems to move up each year. (See Pumpkin spice and everything nice…).
The report noted that energy drink purchases are also on the rise, with many consumers looking for a pick-me-up as they readjust to their daily routines. Servings of energy drinks at quick-service coffee and tea restaurants were up 55% for the three months ending in September, compared to the same time period last year.
Circana’s quick-service restaurant insights unveil shifting consumer preferences, which is good news for foodservice operators in all segments (coffee shops, cafés, QSRs, etc), many of which are still struggling to rebound post-Covid. The transition from ‘fall flavour’ to ‘holiday flavour’ beverages began in early November with returning favourites like peppermint mochas, sugar cookie or eggnog lattes and gingerbread chais debuting on menus. In January, many foodservice outlets will switch to their ‘winter beverage offerings’, which tend to boast various turmeric and cardamom coffee and tea drinks. I am curious to learn if this ‘specialty beverage in the morning’ trend – all of which are higher ticket items – will continue through the holidays and into the new year.
All this talk about specialty limited edition beverages has me jonesing for a festive coffee, but which one to try…
- Vanessa L Facenda, editor, Tea & Coffee Trade Journal.
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