How Profitable is a Coffee Shop in the United Kingdom?

The United Kingdom is one of the leading countries with a strong coffee shop industry. With the British coffee market growing about 10% every year and the industry currently making up about £ 17.7 billion of the economy, the business continues to grow.

Coffee shop owners in the UK can earn around £46,000 and £120,000 gross per year. If you live in the United Kingdom or are planning to relocate, it is a profitable idea to open a coffee shop in the country. The coffee shop industry has made more than £ 10.1 billion in 2018 and is expected to rise by 6 billion euros in 2020.

We will learn more statistics about the coffee industry in the United Kingdom and the popular trends to capitalize on as you open your coffee shop in the country.

10 Coffee Shop Industry Statistics in the United Kingdom with Tips on How to Capitalize on Each One

View these 20 coffee shop industry statistics in the United Kingdom and you will be even more convinced to start your coffee shop business in the UK! There are even a few tips under each statistic for you to capitalize on each industry benefit.

1. The United Kingdom is the fifth-largest coffee consumer in Europe.

• • • Locate your coffee shop in a central hub of the UK to operate successfully and fruitfully.
    • Host an online coffee shop on your website to increase sales.
    • Market your coffee shop in a variety of ways to reach the UK populace.
      • Flyers are posted at partner businesses.
      • Social media.
      • Website.
      • Word-of-mouth.

2. UK individuals drink about 95 million cups of coffee per day.

• • • Streamline your coffee brewing tactics to be quick, easy, yet effectively tasty for all your clients.
    • Provide a variety of hot and cold brew coffees on your menu to dedicate to all tastes.
    • Like Panera Bread ($8.99 per month for unlimited coffee), consider offering a monthly coffee subscription.
      • Free for 1-2 months depending on your desired marketing technique.
      • Then after a free trial, set a reasonable rate.

3. £ 3.2 billion was generated in turnover from coffee sales at coffee shops in 2017.

• • • Partner with notable coffee brands to increase brand awareness about your shop.
    • Maybe brand partners can sponsor you as a new coffee business in the UK.
    • Include in your business plan the popularity of each branded coffee name in your coffee shop, so you are thorough in your sales forecasting.

4. Over 210,000 jobs come from the coffee industry in the United Kingdom.

• • • Have at least 5-8 baristas employed on a rotating part-time and/or full-time schedule depending on the sales you generate.
    • Hire a Manager, Assistant Manager, and Shift Lead for the leadership team.
    • Have a co-owner step in on your behalf for days that you need to take off. This helps you to take some personal time away from the business so that you can recuperate accordingly.

5. £ 222 million worth of coffee is consumed in offices throughout the country.

• • • Start a loyalty program for individuals and/or businesses to encourage drinking more coffee at your shop.
    • Have a delivery service for large coffee orders to offices.
    • Make sure your Keurig K cups and coffee grounds bags are always stocked for office representatives to purchase for use at work.

6. 65% of UK individuals drink their coffee at home.

• • • Sell brand name Keurig K-cups or coffee grounds in a bag for customers to bring home to drink after they visit your coffee shop.
    • You can sell your own blend of coffee to spread brand awareness about your coffee shop.
    • To even have a leg up in the market, sell coffee pots and coffee systems at your establishment alongside your coffee products selection.

7. October 1st is National Coffee Day in the United Kingdom.

• • • Host promotions for the few days leading up to this national day.
    • Tell your customers about these promotions on social media and your website.
    • Order extra stock on coffee products for that week.

8. As of 2015, there are over 20,000 coffee shops throughout the country.

• • • Find a niche in the coffee industry that no one else does and capitalize on it.
    • Locate nearby some competition. It could actually encourage sales as you continue to develop your niche.
    • Interact with customers to find out what they want most out of a coffee shop.
      • Leave surveys by the register.
      • Send customers an electronic version of this survey.
      • Or try a customer service survey emailed to them after their transaction at your coffee shop.

9. The 3 leading coffee shops are Costa Coffee, Caffe Nero, and Starbucks.

• • • Sometimes looking at the name-brand competition can help you to learn from the best in the industry to help your coffee shop succeed even better.
    • Look up their missions and visions. What sets them apart from other coffee shops?
    • Which products are top-selling and what is the sales forecasts?
    • What is their back story as to how they became so successful?

10. The United Kingdom is the 7th largest importer of green coffee beans.

• • • Try coffee menu offerings with green coffee beans and see how they perform in your shop.
    • Bag and sell your own special blend of green coffee beans and post this statistic as a marketing tool with this product.
    • Hand out samples of coffee made with coffee beans to see how your customers like them.

3 Key 2020 Coffee Shop Trends in the United Kingdom

There are various trends in the coffee shop industry in the United Kingdom happening in 2020 that are portraying it as lucrative to start a coffee shop in the country this year.

The 3 key 2020 coffee shop trends in the UK are:

• • • The ease of customization options.
    • Specialty coffee shops are becoming more popular.
    • Cafes are offering more healthy coffee options.

1. The Ease of Customization Options

From choosing a coffee brew to a type of creamer (or no creamer) and whatever sweetener that fits the client’s taste, it has never been easier for customers to customize their own cup of coffee. No two customers have the same taste or coffee cup build. Giving the client demand on how their cup of coffee is made is one of the reasons for the coffee shop industry’s success in the United Kingdom.

2. Specialty Coffee Shops are Becoming More Popular

Specialty coffee shops have been a widespread trend since the early 2000s that have continued in an upward motion of popularity even in 2020. Young Millenials in the United Kingdom are enjoying high-quality artisanal and premium coffee no matter the brand.

65% of the specialty coffee shops in the United Kingdom are discussing opening up more shops in the country over the coming years. This will spread specialty coffee options throughout the UK and increase its popularity across many target markets.
https://perfectdailygrind.com/2018/11/the-rise-of-specialty-coffee-in-tea-loving-britain/

Check out our article on unique foods to offer at your cafe HERE!

3. Cafes are Offering More Healthy Coffee Options

As some United Kingdom residents become more health conscious, cafes are getting on the up and up in making sure that they offer healthy coffee fixings to all clients.

Non-Dairy Creamer Options

Vegan coffee drinkers are appreciating non-dairy creamer options such as soymilk, coconut milk, cashew milk, and more. Even some coffee creamer brands are creating vegan-based products for health-conscious coffee drinkers that you can make available to your customers at your coffee shop.

More Spices and Vegetables

Some coffee blends now have more vegetables and/or spices blended in to make the coffee healthier for the consumer. As more individuals incorporate coffee into their daily lives, they are found to suffer less risk of heart disease according to Sungkyunkwan University researchers located in South Korea.

To Open or To Not Open a Coffee Shop in the UK? That’s the Question!

Just by the statistics and trends in the UK’s coffee shop industry that we have analyzed, it is lucrative to open a coffee shop in 2020 in the country. Just be sure to:

• • • Analyze statistics in the area of the UK in which you want to open your coffee shop.
    • Decide your target market based on said statistics.
    • Discover the best ways to market your business to your target market.
    • Don’t forget to market to your submarkets that will also make your coffee shop even more profitable.

Frequently Asked Question

To learn more on how to start your own coffee shop checkout my startup documents here

Please note: This blog post is for educational purposes only and does not constitute legal advice. Please consult a legal expert to address your specific needs.

Shawn Chun

Hi! I’m Shawn Chun

My adventure in coffee began when I first launched my first coffee shop back in the early 2000s. I had to figure out so many things on my own and to make it worse within 2 years of opening two large corporate coffee chains moved in just blocks away from me!

As I saw smaller and even some larger coffee shops in the neighborhood slowly lose customers to these giant coffee chains and slowly close up shop, I knew that I had to start getting creative…or go out of business.

I (like you may be) knew the coffee industry well. I could make the best latte art around and the foam on my caps was the fluffiest you have ever seen. I even had the best state-of-the-art 2 group digital Nuova Simonelli machine money could buy. But I knew that these things alone would not be enough to lure customers away from the name brand established coffee shops.

Eventually, through lots of trial and error as well as perseverance and creativity I did find a way to not only survive but also thrive in the coffee/espresso industry even while those corporate coffee chains stayed put. During those years I learned to adapt and always faced new challenges. It was not always easy, however, in the end, I was the sole survivor independent coffee shop within a 10-mile radius of my location. Just two corporate coffee chains and I were left after that year. All told the corporate coffee chains took down over 15 small independent coffee shops and kiosks and I was the last one standing and thriving.

Along the years I meet others with the same passion for coffee and I quickly learned that it is not only “how good a barista is” that makes a coffee shop successful, but the business side of coffee as well.

Hence why I started this website you are on now. To provide the tools and resources for up and coming coffee shop owners to gain that vital insight and knowledge on how to start a coffee shop successfully.

Stick around, browse through my helpful blog and resources and enjoy your stay! With lots of LATTE LOVE!

Shawn