Overview
- Caffè Nero’s Gerry Ford said cafes are unlikely to reduce prices even if bean costs ease, opting instead for longer gaps between increases.
- Sector researchers forecast £5 as routine for standard coffees within a few years in the UK, reinforcing expectations of sustained high menus.
- Arabica prices have surged on weather-hit harvests and trade costs, while milk, energy, labour and shipping expenses are anchoring higher retail prices.
- Consumer behavior is shifting as 37% report making more coffee at home in a Citigroup survey, own‑label shares rise, and UK coffee-machine sales jumped 43% during Black Friday.
- Lower-cost drive‑through and convenience outlets are gaining visits as per‑store traffic declines at some big chains, though Caffè Nero reports rising sales and plans further UK expansion.