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US coffee chain Biggby Coffee founded in 1995 first established in East Lansing, Michigan grows US presence.

The chain is gaining its market share rapidly catching up to the big coffee chains in the US such as Starbucks and Dunkin’.

It currently has 243 stores but has 103 locations in development. It could be closing in on 350 outlets, if it all materialises.

Biggby coffee’s business model is franchise only, which they believe is the key to its rapid growth. All the branches are franchised and as are the ones in development.

Even during the pandemic where there’s uncertainty, there has been a steady growth of 17 new stores in 2019, and another 16 new branches in 2020.

The company has concentrated its stores in eleven states including Michigan, Indiana, Kentucky, North Carolina, Florida and New Jersey rather than nationally, but it is heading West and branching out into Arizona and Idaho.

The company generated $128 million in 2018 and boosted to $141 million in 2019. Despite the pandemic, numerous stores were closed during lockdown, but around 50% of the stores offer third-party delivery to boost sales.

Drive-thru sales also play a part in their increase of sales.

Co-CEO Michael McFall says,

Our sales are through the roof, its drive-thru sales, including a recently new modularly built drive-thru, are spiking revenue.

People are more comfortable staying in their car during a pandemic. Hence the spike in drive-thru revenue.

In the second quarter of 2020, sales dipped 2.3%, but third quarter revenue rose 17.8%.

The goal for Biggby Coffee is to become “the specialty coffee for middle America and your everyday coffee shop.”


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