Germany’s coffee shop market increased its turnover by an average of 2.2% annually during the last five years, but growth in the number of branded outlets has flatlined as operators concentrate on improving the profitability of their stores, Allegra Strategies has said.
There are more than 25,000 outlets across the country – including coffee-focused American-style chains, large bakery chains, fast food outlets, petrol stations and other travel operators – with a combined value of almost €3.5bn. The coffee-focussed market showed growth of 1.6% in the number of outlets during the last 12 months, with small chain Coffee Fellows adding the most stores, with ten, and market leader McCafé taking its total up to 867 outlets with the addition of seven stores.
In the next five years, annual average outlet growth for branded coffee-focused chains is expected to level at 1.1%, due to intense competition for out-of-home coffee and snack spend, in particular from bakeries.
Allegra Strategies’ research also outlines how consumers are moving away from the filter coffee that was traditionally popular, with latte macchiato – the beverage of choice for one in five consumers – now the most commonly ordered coffee shop drink.
And, while consumers still drink more coffee at home and in their place of work than in coffee shops, takeaway demand is expected to grow and consumers will continue to seek convenient locations to get their caffeine fix, Allegra Strategies said.
Largest branded chains in Germany
Director of insight for Allegra Strategies World Coffee Portal, Anya Marco, said: “From the research we can see that two things really make a difference to the success of operators. First, German consumers have become increasingly mobile and seek convenient places to have a coffee. This presents an excellent opportunity for businesses to expand their coffee offer in locations with high footfall or at traffic hubs. Secondly, consumers demand increasingly higher coffee quality and are keen to try out new drinks. Although still strong, there is a trend away from a traditional filter coffee led culture to a more diverse and experience-centered at out of home coffee consumption.”
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