The allure of starting your own business is strong, and more people are looking to make their own way in the world. However, choosing what industry in which to open your new business is a hugely important decision. Often, people follow their passion towards a sector where there isn’t money to be made or space for another competitor. When opening a new business, it’s essential you are aware of the climate of the industry and any chances for success that exist.
This need for a thriving industry is why many people are choosing to open their own coffee shop. Entrepreneurs are not just selecting the industry out of love for morning coffee, but because they understand the huge potential that still exists in the sector. Here, we outline just some of the primary reasons all hopefull businessmen and women should be looking at the humble coffee shop for their ventures.
A Continually Growing Industry
You have probably spotted on your local street or commute to work just how many coffee shops are now in business. In 2018, the coffee shop industry achieved its 20th consecutive year of growth in the UK. There are currently over 25,000 coffee shops across the country, all contributing to a market value of over £10bn.
What’s particularly exciting in regards to this growth is how diverse the market is, creating customers for all manner of coffee chains. Branded coffee shops (such as Esquires Coffee) continue to find success and are expected to exceed 10,000 outlets by 2023. Meanwhile, the premiumisation of the industry is creating a ‘5th wave’ of artisan independents with scalability to deliver significant revenues.
A Business with Strong Foundations
The coffee shop industry has seen continued growth for many years. However, the last few periods are perhaps the most notable. At a time when UK high-street stores are losing money, the coffee shop continues to generate profits. In 2018, industry sales grew by 7.9%, with branded outlets achieving nearly 9% store growth.
The coffee shop industry is one of few to continually deliver growth during one of the most perilous times for business. Confusion over Brexit has left many sectors paralysed, but the coffee shop industry has continuously produced results.
Modern Consumer Appeal
One of the primary reasons why the coffee shop has thrived despite broader economic pressure is the changing habits of consumers. A range of factors, including changing tastes and a desire for experience-led retail has made these locations intrinsic to the UK lifestyle. These changing habits are why many industry experts expect to see continued growth for coffee shops going forward.
A Modern Community Hub
Industry growth has been achieved despite a reduction in overall high-street footfall, primarily due to the closure of other stores. Again, this is mainly because visiting the coffee shop has become part of habit for many UK consumers.
One of the main reasons for this is their new role as hubs for the local community. People visit coffee shops to meet up with friends, catch up with family or even as a meeting place for their club. Coffee shops have taken on this role, helping to support local events and groups. The give-and-take relationship has made coffee shops intrinsic to their local community, creating unrivalled levels of consumer loyalty.
The Workplace of the Future
However, the coffee shop doesn’t just have an appeal as a gathering place. Many people also use their local outlet as a place to work. Whether it’s freelancers on their laptops or people having informal meetings, coffee shops are an essential location for business people. This demand is only likely to increase in the future, as more people move into self-employment, and office space becomes a premium. With a regular, loyal clientele who are willing to pay more for the service, the coffee shop industry is well-placed to excel in the future.
Opportunities in the coffee shop industry continue to grow, and entrepreneurs can make money with the right industry knowledge. However, despite this growth, it remains one of the most competitive industries around. For this reason, many people choose to enter the industry with the support of an established brand like Esquires Coffee. When you join the top coffee shop franchise in the UK, you benefit from years of successful launches in the UK but keep the creative freedom of an independent. With enviable continued growth now and in the future, all business people should be considering this industry for their next venture!