With the news from the high street being dominated by stores and restaurants closing there are winners out there!
Yes, the cost of food and the increases in minimum wage, combined with rents ever increasing is making life very difficult. There are however currently about 24,000 coffee shops in the UK – non-specialists, independents and major chains such as Starbucks, Costa and Caffe Nero. All the major brands are continuing to expand their portfolios via acquisition, different store formats and new product development and are proving the market has yet to reach saturation. Small and medium-sized boutique chains such as Joe & the Juice, Boston Tea Party and Taylor Street Baristas amongst others are also gaining momentum and driving comparable sales growth across the sector.
This is all being driven by “Younger millennials and parents make up the core consumers for coffee shops. Younger millennials are drawn to new offerings while parents care about ethical sourcing and premium-quality experiences’ according to Mintel.
Hopefully the coffee shop market will keep growing; with café operating costs lower than restaurants, more economical on space and above all increasing demand!