ALLEGRA PROJECT CAFÉ UK 2024 INSIGHT
The latest report from Allegra is in. We've done the hard work so you don't have to, identifying the 4 key takeaways for the year ahead.
Project Café UK 2024 is Allegra World Coffee Portal's latest research focused on the developments and trends within the UK branded coffee shop market.
Project Café UK identifies the growth, size and value of the branded coffee shop market and provides up to date research on major trends affecting the UK coffee industry.
How the data is collected:
With over 40,000 online surveys with UK coffee shop consumers.
Over 150 in-depth consultation interviews with industry leaders.
THE KEY TAKEAWAYS
1
New innovation and sales channels as the competitive landscape increases.
UK coffee shops have began to adapt different strategies to attract and retain customers.
With Costa leading the marketing innovation, as the first large chain to launch Bubble Tea in the UK and introduction of their new hot milkshake product range.
Food-focused chains like Greggs are now experimenting with an affordable iced coffee range, as the market demand for cold beverages increases.
Similarly, Pret A Manager with the introduction of their iced range last year and doubled down efforts on their Club Pret loyalty subscription with additional discounts on food and drink.
Our Recommendation:
Make sure your drinks offering stays relevant in the market, with something fresh and on-trend. Browse our range of seasonal drinks and plan ahead.
2
Basket spend decreases whilst prices increase
With the cost-of-living crisis having a negative impact on consumer disposable incomes, average spend fell 4% year on year, with consumers either more likely to only purchase a beverage or spend less overall on food items.
Declines in daily and weekly order frequency have also reduced overall footfall. Despite this, branded coffee chains have increased average coffee prices by approximately 9%.
Our Recommendation:
Is your pricing in line with your direct competition?
We have the most comprehensive pricing survey in the UK&I with an interactive breakdown on geographical scope, industry type and more. Get in touch with your Account Manager for more details.
3
Customisation is Key
Adding a syrup to a beverage remains the most popular form of customisation. Caramel remains the preferred flavour overall (19.4%) with vanilla second (16.9%) and hazelnut third (14.1%).
Salted caramel was in the top 3 in 2023, but has dropped to 4th place followed by Gingerbread.
Milk alternatives has become the 2nd most common customisation, with 36.4% of respondents like to do this often peaking among the under 35s at 43.1%.
Oat milk continues to increase in popularity, and overtaken skimmed milk as the third mostly liked choice.
Our Recommendation:
It's important to cover the core syrup and alternative milk preferences as a minimum. Make sure to clearly advertise your customisation choices and alternatives to suit all dietary preferences.
4
Quality is more important than ever.
When considering what represents a high quality coffee shop, consistent beverage standard ranked as most important with 93.2% of consumers agree.
Followed by staff attentiveness (91%) rising to 93.5% for those aged 55 and over, barista skill (84%) and ethical credentials (67%) increasing greatly amongst the under 35s at 72%.
Our Recommendation:
Make sure your staff are fully trained and confident behind the counter, both in beverage making and staff relations.
Looking for some support? We have industry-leading barista training courses and a host of online E-learning support. For more details, read below or contact your Account Manager.