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UK COFFEE SHOP MARKET RESILIENT BUT BREXIT UNCERTAINTY HINDERS GROWTH

UK COFFEE SHOP MARKET RESILIENT BUT BREXIT UNCERTAINTY HINDERS GROWTH



The £9.6 billion UK coffee shop market grew by 7.3 per cent in terms of turnover in 2017, making it one of the UK’s strongest performing sectors.

According to Project Café 2018 UK, a new report from Allegra World Coffee Portal, 1,215 stores were added to the market in the last 12 months, reaching a total of 25,061.

Allegra said the mood in the industry remained confident in 2017, with 71 per cent of coffee sector executives interviewed positive about the trading environment.

However, deep concerns over key Brexit issues, such as trade and jobs, remain – a climate reflected in dampened like-for-like sales and impeded outlet growth.

A lack of clarity over the UK’s future relationship with the EU is a headwind for the industry, but while the fall in Sterling has led to higher equipment and import costs, increased tourism and the popularity of ‘staycations’ has boosted sales for some.

Costa Coffee, Starbucks Coffee Company and Caffè Nero continue to dominate the UK coffee shop market, with 2,326, 956 and 675 outlets respectively. Together, the UK’s top three coffee chains comprise a 52.9 per cent share of the total branded chain market.

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