The UK coffee shops market has reached 5% growth since the crisis in 2009, this is probably a direct consequence of the impact of the recession. Therefore, shifting consumers buying habits from a more expensive meal to a quick bite in the many and diverse coffee shops that are available nation wide (Hospitality & Catering News, 2013).

Looking at today’s UK coffee shops market size, which accounts for £1.4bn, it still is quite an under explored market if compared to the Italian market (£5.3bn). Nevertheless, a wide variety of diverse cafes (such as sandwich bar & bakeries) are opening to compete again high street cafes giants, confirming the changing trend in consumer behaviour (Hospitality & Catering News, 2013).

 

Coffee Shops Positive Impact

Coffee shops not only directly impact the wellbeing of the individual customer, but they also indirectly increase high street visits, which benefits from Coffee Shops expansion. Interestingly, in a survey conducted by Intelligent Business Systems (2010), 95% of customers interviews identified coffee shops has the main factors which increases vitality of local area as well as sense of local community.

This positive impact it’s the key to this market and shows dynamic changes in customer’s habits, showing a recent large growth in this market, which creates increase potential new opportunities for new local coffee shops.

Consequently, this can be a really fun and interesting market to explore, however also very challenging especially in the local area. Therefore, differentiation is a must, in order to appeal to a specific audience segment as well as increasing reputation based on the value added factors such as quality of service and experience offered (BigHospitality.co.uk, 2015).

 

 

Coffee Shops Successfulness

As just mentioned, local coffee shops need to have a highly differentiated selling point, which otherwise would not create value to customers and dramatically reducing the changes for success. In my experiences certain factors are essential for a coffee shops to become unique and remarkable, and these factors are:

Know your food, differentiate by selling a specific choice of food to build up your reputation based on what you are best at, thereby creating a positive association to the brand image.

Creation of Unique experience, giving customers an unforgettable customer service, amazing location or a great atmosphere within the shop.

Quality food, quality is essential to create value. Fair prices and product quality is definitely a great combination to increase customer loyalty and therefore generate higher levels of repeat buying’s.

Excellent customers service and manners, everyone wants to feel welcome and conformable when spending time in a coffee shop. The most effective way to create this atmosphere is by being friendly and accommodating with you customers, developing a sense of community.

Shop display, look inviting and desirable, both from outside and inside, tempting potential customers to come in as well as convincing them to stay in to enjoy their specialties.

 

So, why not?

Investing in a coffee shop can be challenging at first, but very exacting when combining a unique idea to hard work, rapidly enhancing visibility and reputation. Therefore remember that differentiation and location are the key factors, which will set you apart from other competitors, to develop an amazing business opportunity.

 

 

 

 

References

 

Hospitality & Catering News, (2013). UK coffee sales continue to rise. [Online] Available at: http://www.hospitalityandcateringnews.com/2013/06/uk-coffee-sales-continue-to-rise/ [Accessed 18 Feb. 2015].

 

Ibs-systems.co.uk, (2015). Coffee shops have a highly positive impact on local businesses – IBS: EPOS Systems UK – EPOS Hospitality Retail Solutions and Restaurant pub EPOS software . [Online] Available at: http://www.ibs-systems.co.uk/morning-briefing-from-propel/coffee-shops-have-a-highly-positive-impact-on-local-businesses/ [Accessed 18 Feb. 2015].

 

BigHospitality.co.uk, (2015). Coffee shops boosting our high streets. [Online] Available at: http://www.bighospitality.co.uk/Trends-Reports/Coffee-shops-boosting-our-high-streets [Accessed 22 Mar. 2015].