Following on from yesterdays blog about the battle taking place between the independents and the larger chains, The Guardian today reports that the cracks maybe starting to appear with the bigger coffee chains.
Costa’s sales have been flat after a healthy 7% sales growth last year. Brexit , the pound, increasing labour and ingredient costs plus business rates and quieter high streets have all contributed. What’s interesting though is they say that we are now entering a “third wave” of the coffee shop revolution where coffee lovers have developed a more sophisticated taste, willing to spend more per cup for better quality.
Jeffrey Young, an analyst at Allegra says, Costa and Starbucks had tried to adapt by introducing flat whites, brick walls and beaten-up sofas, but this was no longer enough. Young adds: “The coffee industry needs to put its foot on the innovation accelerator and to work a lot harder to deliver value. Brands like Costa have become a little bit ordinary.”
So we stand by yesterdays conclusion that the consumer ultimately will decide where they get their flat white , cake and muffin from , shaping the make up of our high streets for years to come.