Executive Summary
Cadence Coffee is a coffee shop that provides services to support local endurance athletes in the community. Our shop offers traditional drinks, a small selection of house made food, baked goods from local bakeries, donuts from a local donut shop and a membership service that provides specific perks that assist endurance athletes with their training and lifestyle.
Endurance athletics can be a lonely venture for people, as most events within the sport can be done individually. Cadence Coffee wants to improve community amongst athletes within and across sport disciplines such as running, biking and swimming. Teams and groups exist within Davis, so we want to work with those organizations to further their support for athletes.
Competition
Coffee and cafes are recovering from the COVID-19 pandemic. In the US, the number of coffee shops dropped in 2020 because of the pandemic, but they are back on the rise. A net ~100 shops were lost between from 2019 to 2020, but in 2022 the number of shops nationwide was a net positive ~1000.
From 2015 to 2022, the coffee industry in the US has seen a 52% growth and supplies over 2 million people with jobs. Since coffee is drunk more than tap water, the growth of the coffee industry will keep growing.
California drinks the most coffee in the US, and California is the birthplace of two large coffee chains Philz and Peets. Both in northern california San Francisco and Berkely respectively.
People want coffee and community.
There are currently 10-12 dedicated coffee shops in Davis depending on how some locations define themselves. The 10-12 figure does not include Starbucks locations in Safeway grocery stores. 10 of the locations are in downtown Davis and are labeled below in the map. 9 of the locations are east of B st. which makes Cadence Coffee the only option, besides the Coffee House on the UCD campus, on the west side of downtown. The Coffee House primarily attracts UCD students. Non-student community members rarely go. Cadence Coffee would also be the closest location to the Davis Farmers Market which happens on Wednesdays and Saturdays. This makes Cadence Coffee a nice location to stop by before or after. However, during the Saturday farmers market, Pachamama sets up a tent and sells coffee.
Menus and prices of shops
The next competition in the “sit and drink” experience are boba shops in Davis. There are ____ locations downtown, and boba is extremely popular within the Davis community. The boba shops will be in competition with us and all coffee shops, but the overlap time when competition would happen during the day is limited. The mode of opening time of boba shops is noon. The time of day when most coffee is consumed is before noon. When boba becomes an option as competition for coffee shops, many consumers wouldn’t be considering coffee anyways. Many boba consumers enjoy getting boba products in the evening when coffee shops are closed anyways.
There are many restaurants that offer coffee on their menus, but consumers who intend to go to those locations are not intending for the coffee shop experience. Restaurants like Crepeville, Cafe Bernardo, Black Bear Diner, etc. are not direct competition.
The other main competition to Cadence Coffee and other coffee shops are smoothie locations in town of which there are no dedicated smoothie shops downtown.
A unique competitor in Davis is Root of Happiness. Their product centers around kava, a traditional pacific island drink to promote relaxation. Root of Happiness is a unique drink location like small coffee shops are unique, so there is a draw for people to visit and try something new. The product and experience of the kava drink is antithesis to coffee and caffeine. People do enjoy coffee while they relax but not necessarily as a relaxant. Root of Happiness has Sacramento locations.
