Illycaffe continues to expand its presence in the U.S. with a long-awaited IPO still brewing

Italian coffee chain Illycaffè is actively expanding its presence in the United States as part of a broader international growth strategy. The United States is now Illycaffè’s second-largest market, accounting for approximately 20% of its total revenue.

In 2019, the company publicly announced plans to grow its branded coffee shop portfolio in the U.S. from around 17 cafés to more than 200, seeking a retail partner and even considering selling a stake in the company to facilitate the growth. Currently, most of Illycaffè’s mix of wholly owned and franchised cafés and retail shops in the United States are typically found in premium settings such as top hotel brands, international airports, high-end retail malls, and first-rate office buildings.

The company reported record financial results for 2024, with revenues reaching €630 million (about $680 million), a 6% year-over-year increase, and strong sales growth particularly in key markets such as Italy, the United States, Spain, France, and the United Kingdom. In the U.S. specifically, sales rose by 11% across all distribution channels, with online sales advancing by 18%, underscoring the market’s strategic importance to illycaffè.

“With the new board structure, illycaffè is fit for fight and ready to accelerate toward a potential doubling of the business in the short to medium term. We are prepared to face this moment of uncertainty, fully aware of our solidity and equipped with targeted strategies and planning,” commented Andrea Illy, President of Illycaffè.

In response to recent tariff pressures and rising costs, Illycaffè has increased global prices by an average of 4% in 2025 and is considering establishing a manufacturing facility in the U.S. to offset the impact of tariffs imposed by the U.S. government. CEO Cristina Scocchia confirmed that the company is conducting a feasibility study for a U.S.-based roasting and assembly line, although most production will remain in Italy for now. A move would not only help mitigate tariff-related cost increases, but also further solidify Illycaffè’s commitment to the American market.

While the competitive U.S. coffee chain landscape is still dominated by giants Starbucks (NASDAQ:SBUX), Dunkin’, and Dutch Bros. (NYSE:BROS), other upstart chains such as Scooter’s Coffee, Dunn Brothers Coffee, Black Rock Coffee Bar, Gregorys Coffee, Blue Bottle Coffee, Philz Coffee, and Stumptown Coffee Roasters are expanding their presence. Restaurant Brands International’s (QSR) Tim Hortons chain is also pursuing further growth.

Looking ahead, Illycaffè is reportedly preparing for a potential initial public offering by 2026, with CEO Scocchia emphasizing that expansion in the U.S. and China is a key part of the company’s pre-IPO strategy. However, the timing of the IPO is now uncertain due to market conditions, particularly with the volatility in raw material prices.