Quick-service restaurants stealing share from coffee shops

Claire Dodd

Claire Dodd

22 August 2017

Foodservice operators such as fast-casual dining chains have grown their coffee sales three times faster than specialist coffee shops over the last nine years, according to new research.

New data from the NPD Group shows that Britain’s high street specialist coffee chains grew their individual coffee servings by 21% since the year ending June 2008. However, quick-service restaurants increased their sales of coffee three times faster, at 63%, while pubs increased servings by 18%.

'Britain’s coffee market is highly competitive, with specialist outlets not just competing against each other but also taking on the high street quick service brands,' Cyril Lavenant, foodservice director UK at the NPD Group, said.

'It’s no exaggeration to say that offering high-quality coffee is the lifeblood of the British foodservice market.'

The NPD Group says coffee is a key tool for operators to grow custom outside of conventional trading hours, especially by creating new daytime food trading opportunities.

Established brands need to wake up and smell the coffee to take on competitive threats from both extremes of the foodservice sector

Cyril Lavenant

Lunch time trading provides coffee shops with 50% more spend than snacking. Although lunch time now provides coffee shops with 27% of their trade, they’ve only achieved a marginal increase in their share of lunchtime food trading.

However, specialist coffee shops have increased visits by 22% since 2008 from 120 million to 659 million visits a year. Quick-service restaurants have only increased visits by 10% during the same period.

Britain’s high street coffee outlets now account for 6% of the visits of the entire British foodservice industry, and account for 41% of out-of-home coffee servings, meaning there’s still room for other food and drinks operators to steal share.

Lavenant added: 'The established brands have become bland. They need to wake up and smell the coffee to take on competitive threats from both extremes of the foodservice sector.'




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