As the coffee market continues to evolve, the bakery and sandwich sector is emerging as one of the most dynamic and exciting channels. Find out why.
Coffee consumption is booming in bakeries and sandwich shops, with sales increasing 15.4% year-on-year [Worldpanel]. Now, independent research from private-label coffee roaster, Lincoln & York, reveals the trends behind this data, which delve into consumer habits and reveal the areas for growth available to bakery and sandwich operators.
As a taste of what’s to come in the full report, here are just some of the must-know insights for success in bakery and sandwich outlets when it comes to all things coffee.
Caffeine-fuelled footfall
According to the 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.
While it would be easy to think coffee is an afterthought in bakery and sandwich shops, the research demonstrates this to be far from the case. In fact, 40% of consumers say it’s a 50/50 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. Plus, over 50% of 25- to 34-year-olds rarely or never buy food with their coffee in a bakery or sandwich shop, therefore demonstrating once again the importance of prioritising coffee in this space.
However, the quality of the coffee available is key to truly meeting consumer demand, with consumers ranking the quality of both food and coffee as the two most important considerations when choosing where to visit. The research shows younger consumers, aged 18-34, are more likely to state coffee quality as the most important consideration and 68% of all consumers would recommend a bakery or sandwich shop to family or friends, based on the quality of the coffee alone.
Cold coffee is getting hotter
Although a latte is the most popular coffee order in bakery and sandwich shops, 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. Among this demographic, cold coffee is now the most popular coffee order, with 51% ordering iced coffees or frappes when visiting bakery and sandwich shops.
With the study also revealing 74% of 18- to 24-year-olds spend between £5 and £7 on coffee at a bakery, and 79% of 25- to 34-year-olds claiming the same, catering to the tastes of the younger demographic by offering options like iced coffees drives purchase frequency and boosts value spend.
Loyalty is loved
With almost 55% of consumers saying they use a loyalty scheme when buying coffee, the appeal of loyalty cards and apps shouldn’t be overlooked.
Mechanisms such as free drinks after a certain level of spend or number of visits is a great way to drive footfall and reward brand loyalty and operators should consider them as a key driver of consumer engagement and repeat custom.
Brewing success
As consumer expectations around coffee continue to rise across the out-of-home space, there’s no better time to enlist the help of an expert coffee partner to make sure your coffee is consistently hitting the spot and take advantage of the rising demand for quality coffee in the sector.
Backed by 30 years of knowledge working with the biggest names in high street coffee, independent coffee shops and wider retail and hospitality venues, Lincoln & York’s Rise of Bakery Coffee report has been compiled by a passionate team of coffee experts and category insight specialists.
Download it for free here and discover actionable insights to navigate this evolving market and opportunity for growth.
