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August 24, 2021

Are coffee houses losing market share to single serve machines?

The coffee industry's push to sell machines that make single-serve specialty brews has upped the amount of joe Canadians are drinking at home.

Coffee drinkers average more than two cups per day and two-thirds of them are brewing at least some of their drinks at home, according to the NPD Group, a market research firm.

41 per cent of those with single-serve machines like those manufactured by Keurig report using their coffee device more this year than last year. 

So far, the big chains don't seem to be all that worried. But perhaps they should be.

Aside from the highly subjective taste factor, there are two main things that drive peo­ple to cof­fee shops, the first being con­ve­nience and the sec­ond being price. Steadily improving brew-at-home devices seemingly provide both. 

“People are still looking for ways to spend less, and are really benefiting from the convenience and control of brewing at home,” says Robert Carter, executive director of Foodservice at The NPD Group. “The more sophisticated single-serve devices get, the more appealing making the perfect cup at home will become.”

Starbucks and Timothy's coffees are already available in K-cup format. And Tim Horton's recently said it would be following along. But will that move affect your shopping choices?

Are you drinking more home brew? Or are you still getting your caffeine fix over the counter?

By Gordon Powers, MSN Money

Photo: Agnes Sim

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...