The coffee sector has seen rapid growth in the past decade (from larger chains to independent coffee shops) with the market now valued over £10.1bn in the UK alone.
‘Project Café UK 2019, Allegra World Coffee Portal’s market-leading report on the UK café industry, reveals the total UK coffee shop market is valued at £10.1bn across 25,483 outlets*. A 7.9% annual sales increase cemented two decades of UK coffee shop growth’ - Project Cafe UK, Allegra / January 2019
Although, the coffee market has seen continued growth, it is reaching a saturation point. The market is extremely competitive - everyone is offering coffee, from large coffee shops to fast-food.
In order to survive this market, coffee shops need to stand out from the crowd. To help drive growth and profit, the coffee sector is increasingly looking towards technology as a means to differentiate in an increasingly competitive market. Coffee shops must go digital - from loyalty apps, interactive menus, data, and click and collect - this digital engagement can make all the difference.
Here are current market trends and ways Vita Mojo OS can help push the coffee sector forward using technology.
- Click and collect is now growing 10% faster than the rest of the market-place. While it currently makes up only 1% of the market, it still represents about £150m of spend and is increasing extremely quickly.
- 2% of coffee orders in the UK were digital, in China that figure was 11%, equivalent to £500m in sales.
- NPD carried out a survey on the market and found the number one factor of why customers go to a particular coffee brand is convenience.
VMOS Benefits to the Coffee Market:
- Pre-Order App - Having a pre-order app not only allows convenience for customers, but allows baristas to spend less time at the till and more time to do what they do best - make quality coffee.
- Data - Pre-Order apps and loyalty sign-ups provide valuable details and data like email addresses to target these new app users with individualised advertising and promotions.
- Kiosks - Providing a digital kiosk for your customers allows both personalisation and a chance to upsell. When presented with a range of optional extras, many customers will choose to buy more than they would have otherwise.
- Improved Customer and Barista Interaction - As the barista spends less time on inputting customer orders into an EPOS till (a repetitive task which can be easily automated), they can spend more time and focus on building an interaction with the customer whether it’s to ask the customer about their day or just generally build a connection.
Overall, Vita Mojo Operating Systems can help drive efficiency and consistency across your business whilst improving customer service through digital ordering, kiosks and data - helping your business stand out in a competitive market.
Market analysis: Dominic Allport, insights director at the NPD Group, evaluates the UK and global coffee market, looking at key trends, opportunities, consumer usage and developmental potential.