Despite coffee volume growth slowing down in the total out of home coffee market, coffee consumption is booming in bakeries and sandwich shops, with sales increasing 15.4% year-on-year. Lincoln & York’s latest coffee report reveals the trends behind this data.
Coffee driving footfall to bakeries and sandwich shops
According to Lincoln & York’s new report, a staggering 81% of consumers say the quality of the coffee is major factor in which bakery outlet they choose, with almost half of consumers (47%) buying coffee from a bakery or sandwich shop once a month and one fifth of 25 to 34-year-olds doing so once a week. What’s more, 68% of consumers would recommend a bakery or sandwich shop to family or friends, based on the quality of the coffee alone.
So, what’s driving coffee drinkers into this channel? 40% of consumers say it’s a half and half split when they purchase coffee from a bakery and sandwich shop; they always buy coffee, but only half of the time they buy food alongside it. And over 50% of 25 to 34-year-olds rarely or never buy food with their coffee in a bakery or sandwich shop.
Ian Bryson, managing director at Lincoln & York, a leading UK coffee supplier roasting, packing and supplying private label coffee to retail, wholesale and hospitality businesses across the UK and globally, commented: “It would be easy to assume that coffee is an afterthought in bakery and sandwich shops, when consumers visit to buy breakfast or lunch, but our research shows that’s far from the case. Coffee is driving consumers into this channel and is being purchased, even when food isn’t.”
Cold coffee driving value spend
Latte is the most popular coffee order in bakery and sandwich shops, but this is driven by coffee drinkers aged 55 and over. 53% of 55 to 64-year-olds tend to order a latte in a bakery or sandwich shop, which decreases to 26% of 18 to 24-year-olds. Cold coffee is now the most popular coffee order in this sector amongst this demographic, with 51% ordering an iced coffee or frappe. 40% of 18 to 24s also admit to either always or sometimes seeking out speciality coffee in a bakery or sandwich shop, for its quality and flavour.
“The significance of the younger demographic in coffee isn’t new news, but what we must take from this is that the bakery and sandwich sector needs to continue to meet their demands for new and exciting flavours to ensure they continue to get their caffeine fix in this channel,” continues Ian Bryson. “The tastes and preferences of these younger shoppers will undoubtedly shape the direction of the coffee category for the future, meaning if cold and speciality coffees aren’t on your menu you’re missing a trick with this audience.”
Lincoln & York’s report shows that younger coffee drinkers are driving value spend in this sector too, with 74% of 18 to 24-year-olds spending between £5 and £7 on coffee at a bakery, and 79% of 25 to 34-year-olds claiming the same. In addition, 15% of those aged under 25 typically spend more than £7 on a coffee at a bakery.
Ian Bryson concluded: “Consumers are increasingly seeking high-quality, convenient coffee experiences that fit seamlessly into their day, and bakeries are rising to meet this demand with innovation, consistency, and accessibility. Prioritising quality coffee in this channel is crucial to winning new consumers and maintaining loyalty amongst existing visitors.”
