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UK workplace catering ripe for coffee shop expansion, says report

23rd Nov 2012 - 10:07
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Abstract
Workplace and public space catering contractors have huge potential to expand their coffee business and lead the way among a broad range of operators, such as bakeries, restaurants, pubs and travel venues, now running coffee shops.

These enterprises are all competing in the sector to now make the UK the flagship in the European coffee market, where customers in 23 countries are served in a total of 13,826 outlets with turnover topping £12 billion.
The impressive figures were revealed in Allegra Strategies’ Project 12 Cafe Europe report presented by managing director Jeffrey Young at the fifth annual Coffee Symposium in Amsterdam this week.
When the influential market analysts began  research several years ago there were around 500 outlets in the UK and Europe coffee chain sector. The numbers have now risen tenfold and are forecast to reach 15,900 by 2015 with the current 4.4% growth increasing to 4.8%.
The coffee culture march across Europe continues unabated headed by Costa Coffee run in the UK by Whitbread with 1623 units and McCafe in Germany (1583) followed here by other progressive chains led by Starbucks and Caffe Nero.
“Our survey has taken us on a journey to discover the trends in major cities across Europe and shows that despite difficult and challenging economic times, there are opportunities,” said Young.
He encouraged the 350 top level industry executives attending the Symposium to “work together through the coming year to ensure the future success of the industry”.
Allegra’s research showed there are optimistic signs in the market with 38% of those interviewed believing trade was improving while 46% felt it was a little early and could see no change this year.
But with growth sustainability in the coffee sector affected by the squeeze on household budgets, 48% said they wanted quality; 44% were attracted by location; and 37% by service; 26% value for money; and 24% by the atmosphere of the outlet. These statistics should be taken into account by UK operators.

See the January issue of Cost Sector Catering for a fuller report on the Symposium, including other speakers and the European Coffee Award winners.

Written by
PSC Team