| The market for coffee and sandwich shops | | | | are Subway, Pret A Manger, Bakers Oven, |
| continues to grow in the branded sector, in terms | | | | O’Briens and Benjys. These are gaining share |
| of both numbers of outlets and turnover at the | | | | within the total branded outlets sectors, |
| major operators, despite the reported saturation | | | | particularly through their offering of a wider range |
| within the market. However, growth of the | | | | of food and drink products. These are often |
| branded shops is at the gradual expense of the | | | | higher-margin items, improving profitability, with |
| small independents and minor multiples, as the | | | | this tactic blurring the distinction between coffee |
| majors expand outside London and the South | | | | and sandwich shops in general. |
| East into high streets at popular historic, university | | | | The ‘top ten’ branded coffee-shop |
| and tourist towns. They are also taking new | | | | according operators are estimated to a study |
| business at out-of-town shopping centres, | | | | available on to now represent 59.3% of the total |
| concessions within other retailer’s outlets, and | | | | branded sector in terms of outlet numbers and |
| travel-related locations such as railway stations, | | | | 70.6% by turnover. All branded coffee shops are |
| airports and motorway service stations. | | | | estimated to account for 31% of the total |
| Profitability of the branded operators is assisted | | | | coffee-shop market by outlet numbers, and 34% |
| by the fact that outlets outside London, in | | | | by turnover. |
| particular, are likely to reach a level of profit more | | | | The sandwich-shop sector is more complex, with |
| quickly than those in high-rental, prime | | | | one estimate putting the total number ofcafes |
| central-London locations. | | | | and takeaway food shops at around 30,000. The |
| Growth is supported by the continued increase in | | | | more major branded sandwich shops represent |
| the proportions of 45 to 54 year-olds within the | | | | only a very small share of this total, although |
| total population, of ABs and of women in | | | | Subway, Pret A Manger and Bakers Oven |
| employment all of whom are prime customers of | | | | account for an estimated 72.2% of the ‘top |
| coffee and sandwich shops. The preference for | | | | 10’ branded shops by outlet numbers, and |
| eating at these venues, rather than having | | | | 79.1% by turnover. |
| lengthier and more expensive lunches at | | | | Despite growing competition from other retailers |
| restaurants, is sustained by the continuing need | | | | such as grocery multiples and department or |
| for shorter lunches within a busier working life. In | | | | variety stores the branded coffee- and |
| addition, many women choose to eat at coffee | | | | sandwich-shop sectors are predicted to grow at a |
| and sandwich shops, as they are perceived to | | | | rate of between 7% and 11.8% per year in value |
| offer a ‘lighter’ and more friendly | | | | terms over the period from 2005 to 2009. The |
| atmosphere. | | | | total coffee-shop sector is estimated to grow at |
| The leaders in the branded coffee-shop segment | | | | a rate of between 3.9% and 5.3% per year, |
| are Starbucks, Costa and Caffe Nero, while their | | | | reflecting anticipated gains in share by the branded |
| equivalents in the branded sandwich-shop segment | | | | coffee-shop operators. |