Our Markets
Coffee shops
We estimate that there are currently 3,800 branded coffee shops in the UK. They delivered revenues of £1.53 billion for the calendar year 2008.
The branded coffee shop sector is highly competitive in the UK and has experienced rapid growth during the last five years. 2008 was no exception and marked another good year as total sector turnover grew by 15%.
Competition is intense as consumer expectations around product, service and value rise. Competition is also increasing from other operators such as pubs and fast food outlets looking to cash in on the coffee shop image and popularity.
Coffee shops have become, in a short space of time, a mainstream destination enjoyed by a wide cross section of consumers. The latest consumer research reveals that 50% of the adult population visits a coffee shop at least once a month and nearly a quarter visit a coffee shop at least once per week (Allegra Strategies). Coffee shops are now as important as pubs in terms of meeting venues and have universal appeal in a multicultural society.
According to Mintel 2009 there is optimism for future growth deriving from both high street locations and alternatives such as motorway service areas, health clubs and hospitals, for example. The total branded sector is estimated to increase to over 5,000 branded outlets with a combined turnover of over £2 billion by 2013.
