Coffee is a major factor in consumers’ choice of bakery outlet, recent research has revealed.
According to a new report by coffee supplier Lincoln & York, 81% of consumers say the quality of coffee is a major factor in which bakery outlet they choose. What’s more, almost half of consumers polled (47%) say they buy coffee from a bakery or sandwich shop once a month, and a fifth of 25 to 34-year-olds do so once a week.
For the report ‘The rise of bakery coffee: trends, insights & opportunities’, the firm spoke to more than 1,000 consumers and received over 16,000 responses during a two-week period in July 2025.
It highlighted that bakery and sandwich outlets are increasingly focusing on their coffee offer, whether in a food-to-go format or in a ‘linger longer’ venue. It added that as consumers seek to manage costs, they’re more frequently opting for quality coffee venues rather than full-service restaurants, providing an opportunity for businesses to tap into this spend.
Rodeo Doughnuts, for example, recently expanded its menu to include hot beverages such as coffee, while Warrens Bakery has upgraded its coffee with an artisan supplier. Elsewhere, retailer M&S has recently opened several new Food stores featuring a Coffee Bakery concept.
“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,” said Ian Bryson, managing director at Lincoln & York. “Coffee is driving consumers into this channel and is being purchased, even when food isn’t.”
The nation splashed out a whopping £1.2bn on coffee over the past year, a rise of 15.4% from the year prior [Worldpanel by Numerator 52 w/e 15 June 2025]. This represents 480m cups of caffeine.
Latte is the most popular coffee order in bakery and sandwich shops, but this is driven by coffee drinkers aged 55 and over as just over half (53%) of 55 to 64-year-olds tend to order a latte in a bakery or sandwich shop. The figure decreases to 26% of 18 to 24-year-olds.
Cold coffee drives value
Cold coffee is now the most popular coffee order in this sector amongst the younger demographic, with 51% ordering an iced coffee or frappe.
“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,” adds 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.”
Currently, only 27% of those polled say they usually buy food with their coffee, with an additional 42% saying they sometimes do. When it comes to the food consumers enjoy most with their coffee in the channel, 40% say they usually choose a pastry, followed by cakes, sandwiches, cookies, and muffins. However, the baked good of choice varies depending on the consumers’ age.
“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,” Bryson concluded.
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