Figures published in a new report by industry analysts, Allegra Strategies, show that British high streets are enjoying significant economic and social benefits brought by the rise of branded and independent coffee shops.
The report draws on research with over 2,000 consumers and local businesses.
Boosting high street economies
The Role of Coffee Shops on the High Street 2014 report demonstrates that the presence of coffee shops typically boost local high street economies by 2-4% through a combination of increased footfall and dwell time.
Footfall studies show that branded coffee shops can increase high street footfall by up to 28%. 52% of consumers interviewed for the study are more likely to shop for longer when there are coffee shops nearby.
Key findings
- Coffee shops have a highly positive impact on local businesses: 58% of local businesses interviewed indicated that coffee shops attract more people to their business, an increase on 38% in 2010. 43% of local businesses were positive about the contribution of coffee shops to their individual trading
- Coffee shops create a valuable regenerative effect: 85% of local businesses interviewed agreed that coffee shops improve the viability of the local area, an increase on 76% in 2010
- Coffee shops play a significant role in driving high street visits: 58% of consumers surveyed had planned to visit coffee shops as part of their trip to the high street. Furthermore, 18% of consumers visited the high street primarily to go to the coffee shop
- Coffee shops are fundamental to the wellbeing of British high streets: 95% of consumers interviewed feel that coffee shops improve the vitality of the local area
- Coffee shops produce neighbourhood hubs and foster a strong sense of local community: 85% of consumers state that coffee shops have a valuable role in the local community, an increase from 77% in 2010
Future Developments
The report concludes that over the new few years, coffee shops will take an expanded role in local communities and the evening economy.
Branded coffee shops and artisan independents will make further efforts to strengthen links with communities with more authentic and locally relevant store designs.
The report predicts more widespread partnerships between coffee shops and retail and leisure operators, which will make valuable use of both existing and vacant high street space.
Coffee shops offer more than just refreshment
Jeffrey Young, Managing Director, Allegra Strategies commented: “The report illustrates that coffee shops are helping high streets to evolve away from over-reliance on outdated retail models to embrace the demands of a more experience-led British consumer.
Coffee shops offer much more than just refreshment, providing a space for community events and mobile working, while boosting local employment opportunities.”
Integral role in development of the high street
Jason Cotta, Managing Director, Costa Retail UK and committee member of the Future High Streets Forum commented: “Coffee shops have effectively become more than just a place to enjoy a hot drink.
They play an integral role in terms of the socio and economic development of the high street; from employment opportunities to providing friendly community meeting hubs.
As a panel member of the Future High Streets Forum, we have been working closely with local councils to revive and develop their high streets. I welcome the findings of this report which reinforces the role of coffee shops in driving footfall to the high street, as well as helping to improve the viability of the area.”
Positive effect of coffee shops
Ian Cranna, VP marketing & category, Starbucks EMEA commented: “The UK is the most competitive espresso market in the world and Allegra’s report highlights the positive effect coffee shops like ours are having on their local economy.
Serving great arabica coffee and creating that perfect place between home and work has always been our aim since opening our first store in 1998. It’s terrific to see that this vibrant sector is having such a positive impact and we’re proud to play our part.”
The Role of Coffee Shops on the High Street 2014 report
The report was developed from:
Consumer research
- 1,599 online interviews with consumers from across the UK
- 343 face-to-face interviews with consumers inside branded and independent coffee shops in 6 UK case study locations (Putney, Shoreditch, Edinburgh, Leeds, Sutton Coldfield and Cardiff)
- 16,452 online consumer interviews (Allegra Project Café13 UK)
Business research
- 119 in-depth face-to-face interviews with business owners and managers of local businesses in close proximity to coffee shops in 6 case study locations (Putney, Shoreditch, Edinburgh, Leeds, Sutton Coldfield and Cardiff)
- 24 telephone interviews with industry leaders from branded chains, independent coffee shop owners, planning experts, town centre managers and other relevant specialists
- 100+ coffee industry leader interviews (Allegra Project Café13 UK).
