Oregon’s Coffee Shops

Coffee shops throughout Oregon provide customers with their daily coffee, lattes, cappuccinos, and other drinks that help wake them up in the morning and keep them awake throughout the day. According to the National Coffee Association of the USA (NCA), which has tracked coffee consumption through annual surveys since 1950, 83% of Americans 18 years and older say they drink coffee and 64% drink it daily. With such a large majority of Americans drinking coffee, it’s no surprise to find several coffee establishments in cities throughout the state, and sometimes multiple shops on the same block.

Coffee shops and stands are classified in the snack and nonalcoholic beverage bars industry. This industry includes other establishments serving items such as donuts, pretzels, ice cream, and frozen yogurt. In 2019, there were 1,575 establishments in this category with an annual average employment of 16,131. About half of these establishments were located in the Portland metro area (i.e., Clackamas, Columbia, Multnomah, Washington, and Yamhill counties). While 2020 annual employment data is not yet available, the number of establishments dropped to an average 1,465 and employment dropped to 12,300 over of the months of April, May, and June 2020 as businesses struggled due to COVID-19 related business restrictions.

Though snack and nonalcoholic beverage bars is a small industry, comprising less than 1% of total statewide employment, it has seen consistent growth from 2010 through 2019. Growth in both the number of establishments and employment in the industry has outpaced the average rate of growth for all industries. From 2001 to 2019, the industry’s employment more than doubled in Oregon, whereas total employment for all industries increased by 22%. Similarly, the number of establishments increased by 118% compared with 56% for all industries. Growth at snack and nonalcoholic beverage bars has also outpaced the larger food services and drinking places industry. However, the COVID-19 pandemic has halted industry growth in this sector, with second quarter 2020 employment levels 24% below levels during the same period in 2019 at 12,300.

Oregonians not only love drinking coffee, we love roasting it too. According to the Bureau of Labor Statistics, Oregon has the second highest number of coffee and tea manufacturing establishments in the nation after California and the second highest location quotient for average annual employment in the sector after Hawaii. Though some coffeehouses roast their own beans, there are several coffee roasters throughout the state from Portland down to Ashland, and east in Sisters, Bend, and Pendleton. The coffee and tea manufacturing industry in the state steadily increased from nine business units employing 440 individuals in 2001 to 82 units employing 1,159 in 2019. During the COVID-19 pandemic, the number of coffee and tea manufacturing establishments dropped slightly to 80 in second quarter 2020. Employment in the sector dropped by 13% compared with second quarter 2019 to 1,002 jobs.

To learn more about Oregon's coffee shops and roasters, read economist Sarah Cunningham's full article here.