Chart from Meaningful Vision.
Bakeries and coffee shops thrive as employees return to the office
Foot traffic in the UK's fast-food business rose by 1%.
Whilst nationwide, fast-food traffic has registered a modest 1% increase, the top 25 cities stand out with a notable demand surge, driving the average growth rate in the fast-food sector to +5%, supported by a dynamic shift in office attendance patterns with bakeries and coffee shops gaining the most from this trend, showing higher growth rates, according to the latest data report from Meaningful Vision.
Notably, the categories of bakeries and sandwich shops showcase even higher increases in footfall, leading the pack with a 7% growth rate and 11% in big cities. Coffee shop traffic growth is more modest at 1% nationally and 6% in big cities.
The growth hotspots for bakeries and sandwich shops span Yorkshire, the South-East, and London, with the capital city taking the lead with a 15% growth in total traffic.
In the coffee shop category, York and Bradford emerge as frontrunners, boasting growth rates of 59% and 49%, respectively. In the bakery and sandwich categories, Leeds, Norwich, and York take the lead with growth rates of 23%, 20%, and 18%, respectively.
"Growth in coffee shops and bakery segments has significantly contributed to morning and daytime consumer footfall traffic. This trend is a driving force behind sales in major cities and city centres, aligning with the emerging office attendance patterns, as UK employees now spend 20% more time in the office compared to the previous year. The contrasting dynamics between different cities and urban retail environments, influenced by factors such as competitor penetration and pricing policies, underscore the critical importance of tailoring strategies to specific locations. A one-size-fits-all approach is no longer viable, emphasizing the need for a detailed examination and a comprehensive understanding of local market dynamics as an integral part of any growth strategy," Meaningful Vision CEO Maria Vanifatova shares her insights, stating
Read the full report here.
