New Report Shows UK Branded Coffee Shop Sales Grew 5.2%
CoffeeNetwork (New York) - Now in its 25th year, Allegra World Coffee Portal’s Project Café UK report shows the £6.1bn UK branded coffee shop grew 5.2% over the last 12 months to reach 11,456 outlets. In a highly competitive trading environment, many operators are focusing on value-for-money to attract Value in the spotlight as competition heats up in £6.1bn UK branded coffee shop market.
Project Café UK 2025 shows the UK branded coffee shop market added 570 net new outlets over the last 12 months
Costa Coffee remains the UK’s largest branded coffee chain with 2,671 outlets, followed by Greggs (2,610) and Starbucks (1,354)
71% of operators report positive sales growth over the last 12 months, a 7% year-on-year decline
Project Café UK 2025 forecasts the total UK branded coffee shop market will exceed 11,450 outlets in 2026 and reach 13,260 by January 2030
World Coffee Portal’s annual survey of over 50,000 UK coffee shop consumers shows that the proportion making multiple coffee shop visits per week has increased from 56% to 60% over the last 12 months, marking a recovery from the height of the cost-of-living crisis.
Early morning coffee shop activity increased from 22% to 24% amid a rise in commuter footfall as more workers return to offices. Meanwhile, average coffee shop spend has risen 5% to £6.23, bringing it back above 2023 levels following last year’s unprecedented decline. In total, 119 UK-based coffee chains increased their store footprint over the last 12 months, while 40 saw net store closures.
World Coffee Portal’s annual survey of UK industry leaders shows price consciousness is now perceived as the most important consumer trend in the UK branded coffee shop market – overtaking the growth of independent coffee shops. With the average price of a regular latte rising 5% to reach £3.64 over the last 12 months, many major coffee chains, including Costa Coffee, Greggs and Tim Hortons, have adjusted loyalty schemes to reduce spending thresholds for redeeming rewards, or have broadened perks to include free or discounted menu items.
Further demonstrating that market-wide price increases have unsettled previously loyal consumers motivated by routine, Starbucks has frozen beverage prices over the last year, Ole & Steen has introduced a pastry of the week for a set £2, while coffee and food to go chains Leon and Yolk have introduced value-focused subscriptions to compete with Pret A Manger’s Club Pret.
The UK branded coffee shop market is more competitive than ever before, with a host of boutique branded chains, a strong independent coffee shop segment and value-driven non-specialist operators vying for market share. In the specialty segment, WatchHouse, EL&N, Black Sheep Coffee and BEAR have all raised investment over the last 12 months to open more UK stores.
The UK drive-thru coffee segment also continues to grow, adding 51 stores over the last 12 months to reach 855 sites. UK drive-thru coffee market leader, Costa Coffee added 27 sites to reach 373 over the last year, with Starbucks, Greggs and Caffè Nero also investing in the format.
Meanwhile, non-specialist operators with premium coffee offers, such as McDonald’s, JD Wetherspoon and major supermarkets continue to ramp up competition with established branded coffee chains, particularly on value.
UK operators continue to voice concern over high operational costs, including record high green coffee prices, greater wage and taxation burdens and persistently high energy costs. 71% of operators reported positive sales growth over the last 12 months, a 7% year-on-year decline.
Nevertheless, despite short-term apprehension there is long-term optimism for a broader economic recovery and further branded chain expansion. World Coffee Portal forecasts the total UK branded coffee shop market will exceed 11,800 outlets by January 2026 and more than 13,200 by January 2030 at five-year outlet growth of 3.0% CAGR. Sales are expected to exceed £8bn over the same period, representing five-year growth of 5.7% CAGR.
Alexis Rubinstein




