U. S. COFF EE CHAINS FACE TWO-YEAR RECOVERY

U.S. coffee chains will take two years to fully recover from an Us$11.5-billion sales plunge that wiped out a quarter of their market in a year when COVID-19 kept customers from cafés, according to market researcher Allegra Group. The U. S. branded coffee chain segment, which is dominated by Starbucks Corp. and Inspire Brands Inc.’s Dunkin’ Donuts, saw sales plunge 24 per cent to US$36 billion in the past 12 months predominantly due to COVID-19, the London-based group said Monday. The industry will return to pre-pandemic sales by 2023, Allegra said, adding that 65 per cent of surveyed industry leaders say trading conditions will improve during the next 12 months. The market will recover to US$ 40 billion and exceed US$50 billion by 2025 at a 7 per cent annual growth rate, according to Allegra.