Coffee & Tea Franchises: Facts & Figures
The Franchise Advantage: Brewing Success in the Coffee and Tea Industry
Are you a passionate coffee lover or a tea enthusiast with dreams of owning your own business? The coffee and tea industry in the UK offers a thriving landscape for aspiring entrepreneurs through its diverse array of franchise opportunities.
Franchising has emerged as a popular and proven business model, enabling individuals to tap into established brands and business systems. When combined with the ever-growing demand for quality coffee and tea, this presents a potent recipe for success.
A Sip of the Industry Trends
The UK’s hot beverage culture has experienced a monumental shift in recent years. Here are some trends that underscore the industry’s vitality:
- Rising Coffee Consumption: The UK is witnessing a significant rise in coffee consumption, with speciality and premium coffee becoming a daily indulgence for many.
- Tea Reinvented: While tea has been a traditional favourite, innovative blends and premium options have captured the attention of a new generation.
- Mobile Coffee: The trend of mobile coffee shops has gained traction, catering to busy urbanites and events.
Why Choose a Coffee or Tea Franchise?
Investing in a coffee or tea franchise business offers distinct advantages for budding entrepreneurs:
- Proven Business Model: Franchises come with a tested business model, reducing the risks associated with starting from scratch.
- Established Brand: Leveraging a well-known brand like Costa or others can attract customers right from the start.
- Training and Support: Franchisees receive comprehensive training and ongoing support, even if they’re new to the industry.
- Access to Suppliers: Franchisors often have established relationships with suppliers, ensuring a consistent stream of quality coffee beans and tea leaves.
Diverse Types of Coffee and Tea Franchises
The coffee and tea franchise landscape is as diverse as the beverages themselves. Here are some types of franchises you can consider:
Coffee Shop Franchise: Classic brick-and-mortar coffee shops remain a staple in the industry, providing cosy spaces for customers to savour their favourite brews.
Mobile Coffee Franchise: For those who want to bring their beverages directly to customers, mobile coffee vans or carts offer flexibility and convenience.
Café and Tea Room Franchise: Tea lovers can explore the world of speciality teas by investing in a tea room or café franchise.
Numbers and Statistics
Over the last decade, there has been an increasing trend in the number of coffee houses operating in the UK, including independent operators and non-specialists as well as branded chains. The number of non-specialists in particular has grown in recent years, as non-traditional vendors such as supermarkets and pubs started offering specialized coffee menus.
- The branded coffee shop market value in the United Kingdom was £4.4bn in 2021. The number of branded coffee chains in the UK was 8,222. The consumer spending on restaurants and cafes in the UK was £92.32m in 2021.
- According to The Guardian, UK consumers spent more than £4bn getting their caffeine fix from high street coffee shops in 2020.
- Spending at big brand coffee shops, from Costa Coffee to Starbucks, reached an all-time high this year, with sales up £1bn since 2015.
- In the UK, we now drink approximately 98 million cups of coffee per day. For an average cup of coffee consumed in the UK, up to 76% of its value is estimated to be produced in the UK. The coffee industry creates over 210,000 UK jobs.
Industry Trends
Sustainability: Consumers are increasingly concerned about the environmental impact of their coffee and tea consumption. This has increased demand for sustainable and eco-friendly products, such as reusable cups and biodegradable packaging.
Speciality coffee: There has been a growing trend towards speciality coffee, with consumers seeking out high-quality, artisanal blends. This has led to an increase in the number of independent coffee shops and roasteries.
Health and wellness: Consumers are also becoming more health-conscious, leading to a rise in demand for healthier options such as herbal teas and low-sugar coffee alternatives.
Convenience: With busy lifestyles, consumers are looking for convenient options that fit into their daily routines. This has led to a rise in demand for takeaway hot beverages, as well as mobile ordering and delivery services.
Turning to tea: Mintel’s tea market research indicates that it has the potential to benefit from the alcohol moderation trend; 48% of over-18s who buy and drink tea sometimes turn to the brew as an alternative to alcoholic drinks. In the longer term, consumers’ focus on health and wellbeing will continue to support the UK tea market
Bubbling with promise: Although it’s been around for a while, bubble tea has gained a large following over the last few years and it seems the public can’t get enough of it. It’s expected to continue its rapid growth in the coming years.
Navigating Your Path to Franchise Success
If you’re eager to embark on your coffee or tea franchise journey, keep these steps in mind:
- Research Thoroughly: Understand the different tea and coffee franchises available, their terms, and what they offer.
- Assess Your Passion: Choose a franchise that resonates with your passion.
- Budget Wisely: Consider the initial investment and ongoing costs while evaluating the potential returns.
- Connect with Franchise Partners: Reach out to existing franchisees to gain insights into the experience.
The High Street Awaits: Seize the Tea and Coffee Franchise Opportunity
With the UK’s penchant for quality beverages and the franchise model’s allure, the coffee and tea industry presents an inviting prospect for aspiring business owners. From traditional coffee shops to innovative mobile ventures, the choices are as diverse as the drinks themselves. Embrace this flourishing industry, sip by sip, and establish your own caffeinated or steeped success story.
