Business development officer

Thinking About Starting a Coffee and Sandwich Shop in the Uk?

Description:

This article reveals statistics and trends in the Coffee shop and sandwich shop busines in the UK

Content:

The market for coffee and sandwich shops continues to grow in the branded sector, in terms of both numbers of outlets and turnover at the major operators, despite the reported saturation within the market. However, growth of the branded shops is at the gradual expense of the small independents and minor multiples, as the majors expand outside London and the South East into high streets at popular historic, university and tourist towns. They are also taking new business at out-of-town shopping centres, concessions within other retailer’s outlets, and travel-related locations such as railway stations, airports and motorway service stations. Profitability of the branded operators is assisted by the fact that outlets outside London, in particular, are likely to reach a level of profit more quickly than those in high-rental, prime central-London locations.
Growth is supported by the continued increase in the proportions of 45 to 54 year-olds within the total population, of ABs and of women in employment all of whom are prime customers of coffee and sandwich shops. The preference for eating at these venues, rather than having lengthier and more expensive lunches at restaurants, is sustained by the continuing need for shorter lunches within a busier working life. In addition, many women choose to eat at coffee and sandwich shops, as they are perceived to offer a ‘lighter’ and more friendly atmosphere.
The leaders in the branded coffee-shop segment are Starbucks, Costa and Caffe Nero, while their equivalents in the branded sandwich-shop segment are Subway, Pret A Manger, Bakers Oven, O’Briens and Benjys. These are gaining share within the total branded outlets sectors, particularly through their offering of a wider range of food and drink products. These are often higher-margin items, improving profitability, with this tactic blurring the distinction between coffee and sandwich shops in general.
The ‘top ten’ branded coffee-shop according operators are estimated to a study available on www.marketsensus.com to now represent 59.3% of the total branded sector in terms of outlet numbers and 70.6% by turnover. All branded coffee shops are estimated to account for 31% of the total coffee-shop market by outlet numbers, and 34% by turnover.

The sandwich-shop sector is more complex, with one estimate putting the total number of
cafes and takeaway food shops at around 30,000. The more major branded sandwich shops represent only a very small share of this total, although Subway, Pret A Manger and Bakers Oven account for an estimated 72.2% of the ‘top 10’ branded shops by outlet numbers, and 79.1% by turnover.
Despite growing competition from other retailers such as grocery multiples and department or variety stores the branded coffee- and sandwich-shop sectors are predicted to grow at a rate of between 7% and 11.8% per year in value terms over the period from 2005 to 2009. The total coffee-shop sector is estimated to grow at a rate of between 3.9% and 5.3% per year, reflecting anticipated gains in share by the branded coffee-shop operators.

Author: Josephine Jenno

About Author:

Josephine Jenno
Indepth Business Intelligence
http://www.marketsensus.com

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