The UK’s love of speciality coffee shows no sign of waning as independent coffee shop owners report growing confidence in their business.
According to new research[1] by the Caffè Culture Show (#CaffeCulture2015) exploring life behind the coffee machine (#Cafeconomy), nearly six in ten (59.2 per cent) owners of independent coffee shops and cafés saw business performance improve in 2014 compared to 2013.
92 per cent are confident and optimistic about their business in the coming year, 80 per cent expect turnover to grow and over half (53 per cent) will increase staff numbers.
Three in ten plan to open more cafés within the next two years. Customer loyalty, business maturity and improvements to operations, and the strong London economy are among reasons given for this positive outlook.
Investment is a priority for 2015 with 93 per cent of independent café owners set to invest in their business this year. Nearly a quarter (22 per cent) plan to spend over £10,000 with equipment, marketing, training and staff the key priorities.
Attracting more customers is the main commercial priority for the next two years (72 per cent), followed by achieving higher profit margins (61 per cent) and offering a better product range (50 per cent).
Passion, it seems, is at the heart of the UK’s indie café scene.
Enjoying what they do, providing great customer service (both 83 per cent) and providing the best quality cup of coffee possible (71 per cent) are what matters most to independent café owners.
42 per cent say it was their passion for food and drink that motivated them to start up their business in the first place and 65 per cent make all the food sold on-site from fresh.
35 per cent of independent café owners say customers visit on a daily basis and 48 per cent two or three times a week. Over four in ten (43 per cent) say customers spend over £5 per visit.
Latte is the biggest-selling coffee-based drink sold in independent coffee shops and sandwiches the most popular food item.
Café owners predict that the biggest consumer trend in the industry in the year ahead will be increased demand for healthy options including low-fat, low-sugar, and allergy and intolerance-friendly food and drink products (30 per cent).
Event Director Cheryl Carroll says: “The entrepreneurs at the helm of our thriving independent coffee shops and cafés are playing a major part in fuelling the UK coffee boom.
Their commitment to customer service and passion for quality is encouraging many of us to be more discerning about our coffee-drinking experience.
Despite facing major competition from the branded chains, supermarkets and others, the independents are more than holding their own in the market, doing what they do brilliantly.
It’s particularly heartening to see the vital role the independent café industry is playing in supporting the UK economy with nearly half (48 per cent) sourcing products from local suppliers and a third (36 per cent) from artisan producers.”
Caffè Culture Show speaker, business adviser and ‘Coffee Boy’ John Richardson says: “This research is a fascinating insight into the real world of independent coffee shops and cafés, which couldn’t be further removed from the headline stories of Starbucks, Costa and Caffe Nero high street domination.
The results show that despite the relentless growth of ten large chains, there is still substantial growth and confidence within the independent sector with plenty of scope to take the large chains on, regardless of what is often claimed.
More than 77% of respondents are single site, single owner operations.
Our own experience with some of the excellent single site operators out there shows that there are still large opportunities to provide better coffee, better food (often markedly better) and higher service levels than the big chains can manage.
The critical factor for independents is to also provide the consistency and trust that drives many customers to the chains.”
According to hospitality industry consultancy Allegra Strategies[2], the UK coffee shop market grew 6.4 per cent between 2012 and 2013, with 38 per cent of UK coffee drinkers drinking their out of home coffee in an independent café.
It predicts there will be 20,500 coffee shops in the UK by 2018 with a combined turnover of £8.7 billion.
There are thought to be approximately 6,500 independent coffee shops in the UK.
The Caffè Culture Show (#CaffeCulture2015) is the leading annual event for the UK café industry and takes place on 13-14 May at London Olympia.
It attracts thousands of visitors with a passion for the business of coffee from across the UK including baristas, café and coffee shop owners, and senior industry buyers.
The show provides invaluable advice and inspiration from leading lights of the UK coffee scene in the Business Theatre and Taste Experience Stage, national barista competitions (#CIGS2015 #CupTasters2015), artisan food and drink products, and the latest kit from hundreds of leading wholesalers, equipment manufacturers, technology companies and suppliers to the café industry.
[1] Caffè Culture Show research amongst 206 owners of independent cafés and coffee shops, February 2015
[2] Project Café13 UK, Allegra Strategies, http://www.fdin.org.uk/2014/01/uk-coffee-shop-market-demonstrates-strong-sales-growth/
