Coffee shop sales boosted by breakfast trade

Latest figures from the NPD Group have shown coffee shop sales have increased by 5% since 2009, with breakfast visits increasing by 9% on average every year between 2009 and 2012. The research found that breakfast now accounts for just under 20% of total out-of-home eating visits with consumers making an extra 25.6 million visits each year compared to 2009. On-premises coffee consumption is also growing in popularity with visits up 3.5% between 2011 and 2012. Commenting on the research, Guy Fielding, director of business development for the NPD Group said: “The surge in breakfast is great news for the likes of Caffè Nero, where this occasion accounts for just over a quarter of their total visits. This is particularly important as snacking is slowing, and this is impacting some of the Quick Service coffee operators. “So the enduring popularity of coffee is compensating for the snack slowdown. But in spite of the coffee uplift at breakfast, all the branded coffee players are still feeling the impact of the slower snacking market, most notably Costa Coffee, where snacking constitutes 57% of all visits – the highest among the ‘big three’.” Outlets that have not traditionally focused on coffee are now aware that a good quality coffee proposition will attract new customers, and prompt them to spend more per head. Tesco recently announced its investment in high street ‘artisan’ coffee chain Hoole and Harris, which will be managed by the team behind Taylor Street, a small chain of coffee shops in London. Fielding added: “There is no doubt that British consumers have embraced a coffee culture and have become far more sophisticated and educated in their tastes. While the core coffee chains were the first to capitalise on this trend, the high street sandwich shops and bakeries, not to mention pubs and even petrol forecourts, are all getting in on the action.” NamNews - Wednesday 5th June 2013