Latest Pricing Survey insights revealed
WINTER 2024
We are proud to produce the most comprehensive coffee menu pricing report in existence.
Bi-annually, we survey availability, price & size across every sector in the UK & I - Food focused chains, Coffee-focused chains, Independent cafés, Hotel & Leisure, Retail & Supermarkets, Restaurants & Pubs, Speciality Coffee ad Coffee To Go... to name but a few. Analysed amongst geographical locations and location types, there isn't a question we can't answer.
We've pulled out some key considerations from the last Pricing Survey contacted in January 2024. If you would like more information, please get in touch with your Account Manager.
Increasing coffee prices reveal shift in consumer preferences.
With rising cost pressures in the industry, it's no secret that café operators are looking to increase coffee prices. Whilst Latte and Cappuccino have typically always been the most popular beverages, there is rising demand for Iced Lattes and Mocha as a mainstream beverage with changing trends and preferences and as a result, scope for price increases.
Top 5 average price increases in the last 12 months –
1. MOCHA 27p increase (£3.34 2023 vs £3.61 2024) 2. ICED LATTE 27p increase (£3.34 2023 vs £3.61 2024) 3. LATTE/CAPPUCCINO 23p increase (£3.10 2023 vs £3.33 2024) 4. FLAT WHITE 22p increase (£3.01 2023) vs (£3.23 2024) 5. AMERICANO 20p increase (£2.80 2023) vs (£3.00 2024)
The Rise in Iced Beverages
It’s now estimated that 18% of UK consumers purchase iced beverages 2-3 times per week. Iced latte and Iced tea are the most popular iced beverage platforms.
The average price of an Iced Latte in February 2024 is £3.61 for a 12oz serve, an increase of 27p from 2023. Across the sectors surveyed, food-focused chains charged the highest price on average for an Iced Latte at £3.92, versus £3.73 on average at both Coffee focused chains and Speciality coffee.
Rising in popularity within the last year, Iced Tea saw a higher increase in average price, +38p from 2023 to 2024, now £3.44 for a 12oz. In contrast, from the sectors surveyed, Travel and Coffee To Go charged the highest price on average, at £4.50 and £3.95 respectively whereas food-focused chains typically charge lower than the national average, at £3.25.
INSIGHT Seasonal drinks have had a clear role in the rise of mainstream Iced Tea beverages. With leading chains having their own Refresha tea range and the likes of bubble tea adding to the iced tea craze, its clear there is a strong market for iced tea this summer. Make sure to try our range of Iced tea recipes this Summer, keeping your customers and bottom line satisfied.
Understanding quality perceptions of Speciality Tea
Speciality Tea is not only a product or range of products, it’s also a movement, community of tea lovers with a passion for real tea, who care about the quality, standard and presentation at all levels of the tea value chain. Today’s tea consumers do not like to pay for a run of the mill tea bag they can get at home. It’s important to elevate the tea serve and make it a memorable experience for customers.
Using loose-leaf tea creates an enjoyable tea experience and offers the highest margins, especially when complemented with the teapot serve.
On average, operators are charging 46p more for a 12oz teapot served with loose leaf tea from a standard tea bag ( £3.09 vs £2.66 respectively) compared to £2.78 for the same loose leaf tea when served in a mug.
INSIGHT Make sure you choose a good quality loose leaf tea, charge enough and ensure to invest in the tea serve, in order to reap the additional 31p in profits per tea sold.
Worried about operations or complexity? Suki pyramids offer the same big, tasty loose-leaf tea in a handy string and tag. With a roomy bag to allow the leaves to uncurl and flavour to develop, and completely plastic-free too!
Chains continue to drop surcharges for Alternative Milks whilst Independents charge more
Between February 2023 and 2024, there were minimal price changes for Alternative milks. Independent cafés are charging 11p more on average for alternative milks than Chains (34p in independents vs 23p in chains).
Soya milk saw the largest price difference, with independents charging 30p on average compared with 15p on average for coffee shop chains, followed by Oat with 34p and 23p respectively.
INSIGHT According to the latest Allegra Project Café report, swapping to non-diary milks is one of the most popular drink customisations, with 36.4% of respondents like to do this often, peaking to 43.1% among the under 35s. Following this, many chains have centred recent campaigns around customisation including Costa’s Costamisable, advertising alternative milk options with free substitutions for Soya, as well as Starbucks offering all alternative milks at no extra cost for customers.
SOYA
Independent 30p
Chains 15p
OAT
Independent 34p
Chains 23p
ALMOND
Independent 36p
Chains 27p
COCONUT
Independent 34p
Chains 28p