In times of inflationary pressure, consumers might turn their backs on coffee shops and opt for both value and premium formats. A rise in usage of instant coffee and mixes provide money-saving value options for consumers, but are posing a threat to coffee shops, as people visit them less often to save money.
How can coffee brands tap into arising opportunities resulting from this consumer behaviour and what can coffee shops do to remain relevant? Mintel’s research on coffee marketing reveals that, ultimately, familiarity remains the key purchase driver, with brand equity, health, and indulgent claims helping unlock consumer spending.
Read the full article on the Mintel website
NAM Implications:
- At £2.50 per 100g making 55 mugs @ 4.5p per mug…
- …vs £2/mug in a coffee shop.
- This has to be a no brainer…
- i.e. hospitality has to make the customer experience so superb that it overrides this price difference…
- …or watch their business trickle away.
