“Coffee shops have countered brand fatigue by experimenting with quick-service formats and better food options. Price-led concepts rival non-specialists that are eating into the market share. Meanwhile, efforts in cutting down packaging waste and reducing added-sugar content give coffee shops an edge over competitors.”
– Trish Caddy, Foodservice Analyst
This report will cover the following areas:
- Low-cost coffee can win customers’ favour
- Efforts to reduce coffee cup waste can attract customers
- Coffee shops offer better food options in a competitive eating out market
Coffee shops are faced with competition from a raft of non-specialists, such as pubs and sandwich shops, eating into the market share.
Steps taken by branded coffee shops to give the sector an edge over its rivals include quick-service formats to meet the needs of time-poor city dwellers as well as to provide higher quality of food options to strengthen their offering in the lunch space.
In reaction to disruptors such as JD Wetherspoon that are playing on price with £1 tea and coffee in takeaway cups, a new age of price-led coffee shops have emerged, with easyCoffee as the front-runner. Across the market, coffee shops are making efforts to cut down on packaging waste as well as to reduce added sugar to appease public concerns.
This Report covers those foodservice establishments where coffee is the primary sales item. They are based on the European and North American coffee shop models, typified by Starbucks, Costa Coffee, Caffè Nero and Coffee Republic, offering a wide variety of coffee drinks, eg cappuccino, latte, mocha, etc. Other items are usually on sale, such as pastries, tea, coffee beans, etc. However, the food offer may be restricted.
Coffee shops include venues such as individual stores, kiosks and concessions. These may operate in a number of locations – motorway service areas (MSAs), health clubs and hospitals, for example, as well as standalone outlets. However, they must be independent of the facility they are located in.