Our Understanding: The Current Environment is Highly Competitive and Success Hinges on Making Informed Decisions
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There are more than 60,000 coffee shops nationwide and 3,030 coffee shops in Chicago alone. That’s a lot of competition. Consider, nationally, the average lifespan of a coffee shop is three years, and an April 2019 study found that more than 50% of coffee shops close within the first five years. (Source: SmartScrapers)
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According to multiple studies, more than 80% of consumers are likely to read Google Reviews prior to visiting a business. (Meaning, when convenience is somewhat equal, ratings, reviews, and word-of-mouth are the most important factors in the decision to purchase somewhere. Great experiences lead to great reviews, loyalty, and word-of-mouth advertising; bad experiences lead to negative reviews and negative word-of-mouth advertising.)
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As a coffee shop owner or manager there are thousands of decisions that need to be made that impact sales and profitability from getting new customers in the door, building loyalty, purchasing goods and equipment, and paying wages and providing benefits to employees.
Yet most coffee shop owners and managers make decisions based on gut feeling and limited information. Whether your shop is new or old, has a consistent flow of customers or not, learning what other shops are doing (or not doing) to succeed can help streamline operations, optimize costs, and enhance customer experiences. At Sprout23, we firmly believe that micro-moments matter and everything a coffee shop does from decor, ambience, customer service, equipment, products/goods, marketing, and more, impact the customer (and employee) experience.
Join our benchmarking study and unlock the potential for your coffee shop to thrive. By participating, you'll gain valuable insights and data that can help you enhance your operations, customer and employee satisfaction, and increase profitability. Don't miss this opportunity to learn from industry trends and best practices. This is a collaborative and unique survey unlike any other coffee benchmarking study. Why talk and listen to a few shops when you can receive input from hundreds? Whether your shop is in a city of bright lights or a rural outpost in the middle of America, we invite you to participate and help the coffee community grow. Together, we can elevate your coffee shop to new heights.
How does it work?
1. Review the information on this page and see if it’s something you are interested in. If so, fill out the inquiry form here by May 1, 2025, at 11:59 pm PT. Feel free to share 1-2 questions or topics you’re interested in learning more about in the study. We'll review those questions and topics to inform and finalize the survey.
2. After 100 shops have signed up, we'll begin programming the survey. After the survey has been uploaded, you'll receive an email with the survey link. (If you prefer, we can email a hard-copy version as well). We recommend you set aside about 15 minutes to complete the survey as it is both high-level and granular. We’re crafting a survey so it's more engaging than others you're used to (including a lighter, conversational tone, education, and humor). It's not that we aren't serious about the survey, it's that we value your time and want you to take a less mundane survey.
3. We’ll send some reminder emails out to those who haven’t completed the survey and let you know when the survey will close. We expect it to be open for about a month; however, that depends on the number of completed surveys.
4. After the survey closes, we’ll analyze all of the results and send a spiffy report to you including key findings, overall results, and some recommendations. (See below for the main areas covered in the survey.)
5. Optional: follow-up discussions and deeper dives into areas of interest. Additional thoughts are welcome, so the next iteration is closer to perfect.
* You become a coffee shop data expert that uses the report as supplemental information to make decisions, freeing up more time in your day, adding more money to your pocket, and maybe making some new friends along the way. *
What to expect in the study
Below are sample draft questions from the survey. Responses will be collected using a variety of formats, including single-select, multiple-choice, ranking, slider scales, and open-ends.
Skip/Display logic will be used so respondents only see the questions that are relevant to them.
How your data will be used
The data collected from these questions will be analyzed (testing for statistically significant differences; e.g., a 5-employee shop compared to a 10-employee shop) and shared with you. Key findings will be pulled out in a comprehensive report to help you make decisions. All store-level answers/data will remain anonymous and confidential and will only be shared in the aggregate. You will be able to compare your store data to other store participants.
Financial / Operations
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What percentage of your total store sales (including online ordering) in 2024 came from coffee/tea?
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What percentage of your shop’s revenue is from third-party delivery/takeout apps?
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What are your biggest challenges/frustrations when it comes to expenses (like rising costs of goods) and what, if anything, are you doing to save money/remain profitable?
Marketing
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In the past year, what marketing channels (including paid) have you had the most success with?
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In the next 6-12 months, what communications or marketing tools do you plan to invest more time or resources in?
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What marketing channels do you wish you were more effective at?
Staff / Employees
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How are you attracting top talent to apply and join your team?
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How do you usually reward or show appreciation for your employees to help with retention?
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What is your starting pay for a barista?
Have a few questions you'd like to ask other shop owners?
Great! We want this study to be as helpful for you as possible and we understand each store’s challenges and goals are different. Share your questions in the inquiry form. Don’t worry about question format perfection; you can suggest a topic or subject area, and we’ll do the rest. For example, you can write, “I want to know more about recommended two-group espresso machines.”
Reasons to Participate
Less guesswork and more time for what matters.
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Ever spend hours conducting your own research, scouring the web on products/goods trying to balance cost/quality and how that will affect your bottom line, only to still feel unsure if you’re making the right decision? Don’t have enough time for marketing?
Benchmarking studies improve operational efficiency (by refining processes and practices) so you have more time do things outside of work. This study differs from other studies in that you’ll receive aggregate results within weeks (i.e., not a year) of the survey going “live” so you can make quicker decisions.
It’s Collaborative – Get Answers Directly from Fellow Coffee Shop Owners.
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For local Chicago coffee shops, you get “first dibs” – yes, kind of like saving a parking spot, but no chair necessary. We’re giving Chicago shops the opportunity to share their suggested questions; thus, the survey is partly designed by small business coffee shop owners/managers like you, to provide the data you need (not just overall trends) to confidently make the granular day-to-day decisions. Why are so many shops moving to cups with built-in sleeves? How are coffee shops handling a rise in prices (goods and wages)?
Make Smarter Business Decisions Without the Hefty Price Tag.
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Some industry research agencies charge $275+/hour for this research. Coffee shop studies like the National Coffee Association’s (NCA’s) Fall Report is $1,499 and show national trends that are nice to know, but don’t provide value in making a plethora of business decisions. This study costs just $75 and gives real, practical insights you can actually apply in your shop.
See How You Compare and What to Improve
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Are your profits in line with other shops your size? Are you undercharging (or overcharging)?
The results from this study help you make smarter decisions without having to figure it out alone. You’ll have a better understanding of the local and national markets.
Better Data = Happier Customers and Employees
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From what to sell, to how to build a stellar customer and employee experience, this data helps you make decisions that keep your customers coming back and your team engaged.
A thriving coffee shop is built on more than just great coffee; it’s built on smart decisions from experts in the community.
FAQ
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How do I pay?Sprout23 accepts Chase QuickAccept, credit card, Zelle, Venmo, PayPal, check, cash, and good conversations over cups of coffee. You’ll be sent an invoice via email or it can be dropped off in person (if you are in the Chicagoland area) or I have a volunteer in your city.
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Why is this more affordable than other studies?As a new business and one full-time employee, we are offering introductory, low pricing because our overhead costs are low. We’d like to gain as many customers as possible and prove our value before settling in on a pricing strategy. Eventually, and periodically, we will raise our prices.
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Where will our data be stored?Store level data will be stored on Survey Monkey following its privacy rules. We will hold on to data for up to five years (in case you would like to participate in a future study). We can delete your data at the conclusion of the study.
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What other services do you offer?Essentially, everything related to marketing. Check out our website (www.sprout23.com) for a list of services. We are flexible and adaptable. With over 15 years in client side and client facing marketing roles, there are few things we haven’t worked on.
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How often do you recommend we collect customer feedback?All the time. Google and Yelp reviews contain a lot of bias and aren’t a true measurement of your store’s value to customers. The customers at your store who make suggestions can be helpul at time, but you want to be able to quantify data and use smaller sample sizes for directional use. At the least your shop should collect customer feedback once a year.
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Can you give a presentation of the data?Yes, I can present the findings for an additional fee. We offer both virtual and in-person options.
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Why do you refer to Sprout23 as “We” and “I”?Sprout23 is a sole corporation, but “we” bring in our network of professionals if there’s an area we feel we could provide more value to clients (e.g., Canva, accounting/payroll, advertising from a CMO).