Coffee and sandwich specialists are doubling down on NPD as they look to use menu innovation to drive differentiation and deliver stronger margins.
According to the latest Quarterly Menu Tracker from Lumina Intelligence which analyses how out of home operators are managing menus, the average number of food & drink items on menus at coffee and sandwich shops rose from 131 in Q1 2025 to 148 in Q1 2026, representing an increase of 13%.
This is in contrast to other operators in the market, such as pubs & bars and restaurants, which have seen a 3.2% and 2.8% dip in the average number of menu items, respectively.
“QSR and coffee & sandwich specialists are doubling down on NPD, using menu innovation to defend relevance and drive differentiation in an increasingly competitive market,” the report states.
When it comes to prices, coffee and sandwich shops remain the cheapest with the average price of food items coming in at £4.85, compared to a wider market average of £9.63. However, coffee and sandwich shops have seen the largest increase at 59p, representing a 13.9% rise.
“Operators are leaning into sides and extras to drive spend per head, offering a sense of greater choice and customisation while cushioning headline price increases,” according to the report.
Price rises on same-line items is relatively subdued compared to Q1 2025, with just a 1.9% increase vs a 6.9% increase on all dishes.
“Hence, it is evident that NPD is being used to introduce premium-priced items with stronger margins, limiting inflation on core lines. This strategy protects perceptions of fairness for price-sensitive consumers, while keeping menus profitable and feeling fresh,” Lumina added.
Looking at the trends operators are tapping into with NPD, the analysis pointed to an increased focus on hot options, specifically chicken and cheese dishes as well as pizza while sandwiches “continued to retract”. Indulgence and comfort superseded health in Q1, with multiple brands continuing to focus on drinks and desserts as well as sweet bakery innovations.
Tying into this, familiar favourites remain high on the agenda. For example, the All-Day Breakfast Triple at Pret A Manger made its debut in March featuring three different sandwich halves in one box, including BLT, egg mayo and all-day breakfast. Starbucks, meanwhile, rolled out it signature bakery collection nationwide. Designed to boost food attachment alongside coffee, new items included a Pistachio Scroll and Raspberry Jam & Custard Doughnut.
“These reformulated classics and new cakes reflect growing demand for more premium bakery across morning and afternoon coffee occasions,” Lumina Intelligence noted.
Want to know more about the NPD and trends playing out in the UK out of home market? Then dive into British Baker’s exclusive Bakery Market Report 2026.
No comments yet