Report on Major Coffee Houses in the United Kingdom



Major players such as Starbuck have started opening outlets at every nook and corner of the country to gain popularity and pose threats to its competitors. The competition has become so deadly with more and more entrants joined the market and started their innovative style in product and service. However, recent research findings show that "after a prolonged period of consistent year-on-year growth, much of the coffee shops market is now entering a phase of consolidation, as consumers and operators alike hunker down in reaction to the current economic recession" (Coffee Shops – Current and new strategies for success). Moreover, the trend in the market has also changed from conventional outlet to pubs and fast food especially among youth. At this juncture, this research paper explores the status of the coffee industry in the United Kingdom by means of a variety of methods such as PESTLE Analysis. The study covers the PESTLE analysis of four major players in the coffee industry of the country. The coffee houses selected for the present study are Starbucks, Caffe Nero, Costa Coffee, and Coffee Republic. The study begins with the preparation of a perceptual positioning map and its relevance. The study covers those coffee shops where coffee is a major item of sales and majority of the consumers visit the shops to consume branded coffee because of their loyalty to the brands. The research is not confined to a particular type of coffee. Instead, it includes different types of coffee products such as cappuccino, latte, mocha. For the purpose of the research coffee shops include venues such as individual stores, kiosks and concessions. It is also to be noticed that the research does not cover other coffee establishments such as in-, tea shops, store cafes or traditional cafes, restaurants, and sandwich shops. The study takes a sample survey among 30 coffee consumers of various brands. It seeks to explore that how the consumers of various coffee products rate their brands and what motivate them to buy their brands. A Brief Account of the Profile of Selected Companies Starbucks Established in the year 1980 by Howard Schultz, Starbucks is a large coffee retailer conglomerate having around 11000 cafes spread across 40 countries around the globe. The main reason for the company’s success has been its focus on quality and highest beverage processing standards including selection of the best coffee ingredients. The raw materials that go into making the coffee are extracted from the best Arabica coffee beans and there are no mixtures or additives.