I don't drink tea or coffee. I like the odd hot chocolate but, not being very healthy (or thirst quenching), I only have them as "treats". But I just can't get over how many coffee shops are springing up everywhere! And it has just been announced that Costa has overtaken McDonalds to become the number three food and drink chain in the UK [click here for more details].
But what has caused this increase? Is this demand led growth (i.e. are we demanding more coffee shops to quench our thirst for premium drinks)? Or it this growth leading to demand (i.e. because coffee shops are so convenient, do we just pop in and grab a latte to go)?
However, the coffee shop owners are clever. They first started springing up in "linger" areas such as train stations, then high footfall areas such as shopping districts. But, the cleverest places they have entered into are in business parks and offices, where employees can grab a coffee as a "pick-me-up" or, to meet colleagues in either a social or business setting. With their WiFi, comfy seats and relaxed atmosphere, it is easy to see why they appeal to workers. Additionally, and I have noticed this a lot around where I live, they are popping up in (busy) residential areas. And they are hoaching. People meeting socially, often mums and babies having a catch-up or retired people. They have also become cool hang-outs for young people and students, desperate to catch-up on gossip before (or instead of!) lectures.
Strangely, it seems that coffee shops are "recession proof" - while I don't holeheartedly agree, this article does seem to suggest that people will cut back on lots of expenses, but not their daily visits to a coffee shop.
My opinion is that the coffee shop marketers have got their 4 Ps of marketing right!
PRODUCT: good quality and range of drinks available at most shops (most now serve chilled as well as hot drinks). And added value of sockets, wifi and comfy seats (or stools)
PLACE: As my rambles above stated, high linger areas, high footfall areas and convenient areas close to homes and offices.
PRICE: In my opinion, well over priced, but obviously not but most people!
PROMOTION: branding is excellent with the big chains. Especially with their branded take-away cups. I'm sure people carry round their cup way after they've finished the drink just because they like holding it.
My only wish is that the independent coffee shops show the same growth as the big chains. I would hate for them to disappear under a cloud of Costa-Starbucks obsession. In my opinion, the only way for the independents to succeed is innovation! So, to the likes of Loopy Lornas (who operate in a very crowded, and brand loyal, market), well done! They focus on tea (not coffee), their cakes are delicious, there is a shop selling tea cosies and other items, they offer added extras (like free nappies) and the teahouse itself is so quirky! So please, Loopy, start doing take-aways!