Independent coffee shops are on an upward curve according to recent reports. The UK’s independent coffee shops and smaller chains are enjoying high sales, and overall, the UK is number one in Europe for growth in branded coffee outlets.
Brits love their caffeine — but what sets the independent coffee shop apart from the global coffee chains and why are they proving successful amid stiff corporate competition? Here, we’ll explore the success of the UK’s independent coffee shops and show why — and how — businesses like these can compete with the big-league players.
The UK Coffee sector
Over 24,000 coffee shops line the streets in the UK and the market is worth of around £9 billion with this figure set to rise to 15 billion by 2020, according to a report by Allegra World Coffee Portal — but how much of the market is independent?
Out of the total number of coffee shops in the UK, approximately 6,500 are thought to be independent, and it appears that the independent coffee scene is holding its own even in the face of sharing the market with multi-national, household names — like Starbucks and Costa Coffee. Following a survey by Café Culture, John Richardson — a business advisor — commented: “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.”
But, what makes an independent coffee shop a success? According to executive vice president and chief financial officer of Starbucks, Scott Maw, said: “What we have acknowledged is the collective group of independent coffee shops out there. They are doing a lot of what Starbucks has been so good at for so long.”
Perhaps it’s the ability of smaller coffee businesses to adapt quickly to evolving trends in the sector that helps them keep up with the larger brands. According to an article published in The Telegraph, the typical coffee consumer is becoming choosier — expecting more health-conscious options, faster Wi-Fi to use when enjoying drinks, and the chance to download and use engaging brand apps. It can be argued that making significant changes to services and products — such as switching menus to incorporate healthier dishes, offering later and earlier opening hours and providing a more digital-friendly environment — for customers in thousands of stores on an international scale is far more time-consuming and difficult than doing the same as a single outlet. As a result, this could also be helping drive traffic to independent shops.
What’s more, experts state that coffee consumers are moving towards artisan products and a premium coffee experience — typically offered by indie shops. Managing director, Jeffrey Young, at industry monitoring firm, Allegra, claims that the artisan coffee scene is “widespread” and entering a “new era of exceptional professionalism”. Offering a more personal service, bespoke décor and unique atmosphere could also be reasons that the independent coffee shop is thriving over more recognisable stores that offer similar menus a replicated layout and service. Offering fair trade coffee products can also enhance footfall into the shop, especially with consumers looking for more ethical products nowadays.
Other factors may also be encouraging the growth of independent coffee shops — such as pop-up businesses. The pop-up market is worth around £2.3 billion, according to a Britain’s Pop-Up Retail Economy report by EE, which also found that nearly half of people asked claimed to have visited a pop-up store between 2016 and 2017. Due to the relative simplicity of setting up this type of business and the low start-up costs, people looking to start their own coffee shop have another avenue into the industry, with the ability to drum up brand awareness and gain a loyal following within a certain locality in the process.
Evidently, there are many reasons that independent coffee shops are successful in the UK — but how do you ensure that yours is?
How to make your coffee shop successful
What can you do to match the big brand coffee suppliers?
Mintel food service analyst, Trish Caddy, says: “People want an experience when they’re drinking coffee out of home, and independent coffee shops try to package their products so people remember the experience around the coffee.”
It’s key that you enhance the customer experience. Determine your target audience and create an environment that they will enjoy spending time in. Whether your consumer appreciates eco-friendliness and vegan options, or they love cosy interior designs and traditional menu options; tailor your brand to them to ensure returning custom.
Think about being sustainable
Businesses that are environmentally minded are typically held in high regard from a consumer point of view — particularly in this sector. According to Mintel research, 87% coffee drinkers try to get rid of packaging in recycling bins, while 40% claim that they don’t mind being charged extra for hot drinks served in completely recyclable coffee cups.
As an independent business, you have the ability to swiftly implement green initiatives and attract the type of coffee consumer that will appreciate them. Switch to paper coffee cups or reusable mugs, ensure your products come from sustainable sources, use energy-efficient LED light bulbs, and buy local produce as often as possible to help reduce the carbon emissions that come with transport and storage.
Change up your menu
The trend for coffee has led to many innovations in the sector. From Kombucha tea to nitro cold brews, there’s a world of variety out there — are you capitalising on the choice? If you’re trying to set your brand apart from your independent and big-brand competitors, you must consider what you’re offering your consumers. Can they get the same latte and cappuccino over the road? If so, why would they choose you?
Another thing that you should consider, is having an attractive menu printed. Menu printing companies are easy to find and can add a nice little touch to the consumers in-store experience.
By examining your menu and learning how to brew new, exciting and innovative drinks alongside the traditional favourites; you can capture a new demographic while not trading off on your current, loyal customers.
Independent coffee shops are a thriving and integral part of the UK coffee industry. How will their success transform their products, venues and services further down the line?
Choosing the right POS system is one of the most valuable steps when you open a coffee shop. First, make sure the system is all-in-one — this means you don’t need to buy two different software for front-office (actual Point of Sale) and back-office (management console for owners and admins). This will become an active headache prevention in the future. So, what a POS system is needed for? It allows you to track sales, finances, and inventory optimizes the working process and makes everything much easier. It is better to implement a POS system at the very beginning.
A reliable software also helps coffee shop:
- to avoid theft;
- to increase the quality of customer service;
- to build strong marketing strategies;
- to make an inventory check;
- to calculate employees payroll and trach their worked hours, etc.
Hopefully, now there are no doubts that your coffee shop definitely benefits from using a trusty POS system.