I read an interesting summary of the coffee shop market in the new format Independent today (More on the new format soon).
I’ve never quite got on with Coffee Republic, the faux cheekiness of “latte to flee” just irked me the wrong way. I much prefer Nero or Costa out of choice, and pretty much stay clear of Starbucks unless need outweighs principle.
Anyway, the article does a good job of summarising the current state of play, which I’ll boil down even further: Coffee Republic are struggling, and this is a last attempt to gain traction; They’re rebranding to ‘New york style eateries’, but face stiff competition. Likewise they’re offending their existing ‘lounger’ customers who hang around (how dare they) for too long on their coffee.
Bah Humbug, say I. But I digress: Nero is doing well (profits recently!), and Starbucks expanding still (The count on Fleet Street and surrounds is now six within about 400 metres from Ludgate Circus; Plus others. We have three ‘premium’ coffee shops under our office or directly opposite). Costa, owned by the beer-less Whitbred - is doing well too, running joint ventures with banks and such like.
All an interesting state of affairs. Are we at the end of the coffee shop popularity boom? Not likely. But the end of the corporate expansion, or at least a major consolidation, is upon us. I’d be very surprised if Coffee Republic wasn’t the first casualty.
Entries (RSS)
October 2nd, 2003 at 12:40 pm
Two interesting fact-ets.
Recently spoke to a brit whose brother worked for starbucks in the US before they had even hit the UK. When asked whether he thought the concept would work in the UK he replied no (as I think many of us would have years ago…..the rest is history).
Saw a documentary a couple of years ago which concluded that only two of the big players would survive……
October 7th, 2003 at 6:23 pm
I’ve always prefered Cafe Coco when I was in Chiswick.
Cheaper than all the chains, family run and they always remembered your name and drink choice.
Free drink card (buy 7 get one free) which they often double stamped was always a bonus.
Being right across the High Street from my flat was certainly helpful too.
Chains would never be that giving.
October 27th, 2003 at 11:22 am
Do we think there is room for a new type of coffee shop in the market if it did things a little differently. I suggest maybe a more ‘bar’ style atmosphere or staying open later. Different decor with more emphasis on nature ?