It would appear people up and down the country like to wake up and smell the coffee, if the number of new coffee shops opening around the UK is anything to go by. Once the world’s leading tea drinkers, the British (in particular the bearded hipsters among us) today prefer flat whites.

According to our research, the number of nationally operating coffee shops in the UK has grown by 39 per cent since the end of 2013. In Scotland, they have almost doubled in two years (up by 45 per cent). The UK now has close to 4,000 nationally operating coffee shops, not to mention all the independents that have started grinding beans on what seems like every street corner.

Operators, including Costa, AMT Coffee, Cafe Thorntons, Caffè Nero, Caffè Ritazza, Patisserie Valerie and Starbucks, have all expanded over the last two years, with some operators growing their respective portfolios by over 300 per cent. Other retailers, such as McDonald's and KFC, which are not formally coffee-led, are making changes in order to become competitive.

Not only is the number of outlets on the increase, in many cases, so too is the size of each unit as the function of the coffee shop shifts. A number of national operators are now looking for retail units twice the size required two years ago to support extra seating and dedicated work stations as they recognise the rise in remote working.

The shift in consumer habits and the uptick in coffee shops can be witnessed in town and, of late, out of town, too, as landlords actively encourage operators to take space in drive-thru pods and on retail terraces in out-of-town retail and business parks.

Will the coffee shop market peak and demand for space ebb? We think it’s unlikely: so long as the British keep drinking coffee, the market looks set to stay frothy.

Further information

Contact Savills Retail & Leisure