The total value of the UK coffee shop market is to reach £1.45bn by 2016, as convenience increasingly becomes an important factor for consumers, according to research by consultancy firm Pragma.
The survey, which questioned 1,000 coffee drinkers, found that nearly half (43%) tend to go to a coffee shop closest to them and have no loyalty to a brand, against a third that try to go to the same coffee shop or chain where possible.
It found that 41% would prefer to use independents rather than big chains, however only 20% have used only independents in the last three months.
The research also found that whilst the convenience area of the market is highly saturated, one in four people claim to actively seek out new coffee shop concepts to add to their repertoire.
It found that the most popular initiatives were loyalty cards, with 46% of those questioned finding them very/extremely appealing, followed by Free Wi-Fi (41%), free magazines and newspapers (35%) and a discount for using a reusable cup (35%).
Florence Graham-Dixon, strategy analyst at Pragma, said: “If competing on convenience, you will have to take on the big three (Costa, Caffe Nero and Starbucks) who are constantly developing their proposition with ‘on-the-go’ and drive-thru formats, express coffee machines and contactless payment. This appeals to the 45% of those surveyed who consider speed of service very/extremely important when deciding where to go, as well as the 30% who find the idea of express tills very or extremely appealing. Both of these figures are higher in London where the demographic is younger, more work-driven with a higher frequency of visits, and a higher average spend.”
