Minimum Wage:
Since employment levels in the coffee industry will recover in the short-term and experience minimal growth, the minimum wage will also recover slightly because of greater automation. Currently, the minimum wage for every worker in this industry is $12,589 and is expected to increase to $13,197 in the next five years. The automation of the food-preparation process is considered as the major factor for the long-term trend of declining wages.
Personal Income:
The coffee industry is characterized by low to medium industry revenue volatility because of significant growth in demand from higher-income households that continue to rely on quick snacks and beverages. Therefore, personal income plays a crucial role in determining consumer behavior and trends. The high-income households or individuals contribute to low to medium industry revenue volatility because these consumers are income-rich but time-poor.
Inflation:
Even though the coffee industry is an economic powerhouse and a crucial part of Americans' lifestyles, the financial performance of this industry is determined based on inflation-adjusted figures or terms. The projection of industry sales and profitability is based on these inflation-adjusted terms because of the impact of inflation on the economy (Porjes, 2011).
Exchange Rates, Tax Rates, and Interests Rates:
The profitability of the coffee industry is determined based on earnings prior...
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