Branded Coffee Shops Struggle

Commenting on the report findings, Allegra Group Founder and CEO Jeffrey Young said:

“While there is no doubt the UK’s branded coffee shops are here to stay, Covid-19 has had a devastating impact over the last 12 months. With the market suffering a near 40% sales decline in 2020, World Coffee Portal forecasts it will take at least three years before the segment returns to pre-pandemic levels.

“Recovery will require significant innovation, discipline and leadership, with successful operators adapting to on-going trading challenges with smart, technology-led solutions and new store formats.

“Unfortunately, we anticipate further casualties over the next 12-18 months and further government assistance may well be required to ensure the short-term viability of many coffee shops and the wider hospitality industry.”