Specialist coffee shops was one of the fastest growing foodservice channels globally in 2016. The format can be credited for growing the market for out-of-home coffee consumption, but innovation at the bottom of the ladder is making better-quality coffee more accessible than ever. Quality coffee is democratising, which means the unique selling point of specialist coffee shops is changing. Chained players are embracing format diversification and digital channels to remain competitive.
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Specialist coffee shops have had an impact on consumer preferences towards the coffee itself. Consumers now have more options, they are better informed, and are more confident in what they want.
Channel diversification and innovation at the bottom of the ladder is making quality coffee more accessible and accessibility is making it cheaper.
Chained players are adopting new strategies to compete with channel diversity, developing new formats which are more accessible and more convenient.
Effective digital strategies should include rewards programmes, mobile ordering and in-store payment functionality in order to keep the customer engaged.