UK Coffee Franchise Market Expected to Reach $12,788.6 million by 2035—Allied Market Research

According to a new report published by Allied Market Research, titled, “UK Coffee Franchise Market Size, Share, Competitive Landscape, and Trend Analysis Report by Cuisine and Delivery Type: Opportunity Analysis and Industry Forecast, 2024-2035.”

The UK coffee franchise market size was valued at $5,317.7 million in 2023 and is projected to reach $12,788.6 million by 2035, registering a CAGR of 7.6% from 2024 to 2035.

A coffee franchise is a commercial arrangement in which a franchisor licenses its brand, products, and business model to independent owners in exchange for fees and royalties. This model is prevalent in the UK, where popular coffee brands expand through franchise partnerships to reach new markets. Franchisees gain access to established suppliers, staff training programs, and operational guidance, ensuring efficient store management. Coffee franchises often target high-footfall locations such as shopping centers, train stations, and busy urban streets, capitalizing on consumer demand for quick-service beverages.

Brunch culture has gained substantial traction in the UK, contributing significantly to UK coffee franchise market growth. According to a report by UK Hospitality, a trade association representing the hospitality sector in the UK, brunch dining has increased by 30% in the past five years, with coffee shops increasingly integrating brunch menus to attract customers. Millennials and Gen Z consumers have driven this shift, frequently visiting coffee shops that offer breakfast options, pastries, and all-day brunch menus in UK coffee franchise market. Franchises have responded by enhancing their food menus, combining specialty coffee with trendy brunch dishes such as avocado toast, smoothie bowls, and artisanal baked goods. In addition, franchises are incorporating vegan, gluten-free, and organic options to cater to health-conscious consumers. The evolving café culture has transformed coffee outlets into lifestyle destinations where socialization, casual meetings, and remote working thrive. To meet this demand, franchises are investing in comfortable seating, complimentary Wi-Fi, and flexible working spaces to attract remote professionals which are expected to propel the growth of UK coffee franchise industry

In addition, partnerships with local bakeries and artisanal food producers have enabled franchises to diversify their offerings with fresh and unique menu items. Coffee franchises incorporate social media-friendly aesthetics, featuring elegant décor, vibrant lighting, and artistic latte designs to entice customers seeking Instagram-worthy experiences in coffee market. This blend of premium coffee, diverse food offerings, and inviting ambiance has strengthened customer engagement, encouraged repeat visits and longer dwell times. Coffee franchises effectively attract a broad customer base ranging from morning commuters and social groups to freelancers seeking productive yet comfortable environments by successfully integrating brunch concepts and fostering café culture which is expected to propel the growth of the UK coffee franchise market.

Rise in trend of remote work and flexible working arrangements offers significant growth opportunities for coffee franchises in suburban and residential areas. According to the Office for National Statistics (ONS), 44% of UK employees worked remotely in some capacity in 2023, underscoring a shift in consumer behavior. As individuals increasingly seek local dining and socialization spaces near their homes, coffee franchises capitalize by expanding into suburban neighborhoods. Unlike densely packed city centers, suburban regions offer reduced competition, lower rental costs, and access to untapped customer bases. Families, freelancers, and home-based workers in these communities are frequent visitors to local coffee shops, driving demand for comfortable spaces with quality beverages and light snacks. Franchises that incorporate workstations, free Wi-Fi, and family-friendly environments effectively cater to these demographics. The rising remote work and evolving UK coffee franchise market trends are expected to create more opportunities for the players in the upcoming years.

In addition, partnerships with local suppliers and bakeries enhance product variety, fostering customer loyalty. Expanding into suburban markets allows franchises to offer delivery services, meeting consumer preferences for convenience. With rise in suburban population, coffee franchises are increasingly establishing outlets near residential complexes, parks, and leisure hubs to target these communities. Coffee franchises develop a loyal customer base while reducing reliance on highly competitive urban markets by aligning with remote work trends. This strategic expansion offers sustained growth potential, enabling franchises to capture long-term consumer demand in emerging residential hotspots which is expected to boost the growth of the market during UK coffee franchise market forecast. Leveraging these opportunities through localized marketing and tailored offerings ensures consistent sales and brand visibility in developing suburban markets.

The UK coffee franchise market is segmented into cuisine and delivery type. By cuisine, the market is fragmented into lunch, brunch, and coffee and Bar. By delivery type, the market is divided into dine-in and dine-out.

By cuisine, the coffee and bar segment held the major UK coffee franchise market share in 2023 and is anticipated to maintain its dominance during the forecast period. The popularity of coffee and bar-style franchises in the UK is driven by consumers seeking versatile dining experiences that cater to both daytime and evening preferences. Coffee and bar concepts appeal to individuals looking for a relaxed café environment during the day, offering specialty coffees, artisanal pastries, and light snacks. In the evening, these venues seamlessly transition into vibrant social spaces featuring cocktails, craft beers, and small plate menus, attracting groups for casual gatherings. This hybrid model effectively maximizes operating hours, allowing franchises to generate consistent revenue throughout the day which expected to propel the growth of coffee franchise market.

By delivery type, the dine-in segment dominated the UK coffee franchise market in 2023 and is anticipated to maintain its dominance during the forecast period. Surge in preference for dine-in coffee franchises in the UK is fueled by consumers seeking immersive, comfortable, and social dining experiences. Modern coffee shops are evolving into lifestyle destinations where customers relax, work remotely, or engage in social gatherings. Dine-in franchises are increasingly investing in spacious seating arrangements, stylish interiors, and ambient lighting to create inviting environments. According to UK Hospitality, a trade association representing the hospitality sector in the UK, over 60% of consumers prioritize venue ambiance when choosing dining locations, underscoring the importance of comfort and aesthetics for coffee franchise market. Coffee franchises are enhancing their food menus with brunch options, desserts, and specialty beverages to extend customer dwell time. In addition, providing complimentary Wi-Fi, charging points, and quiet zones has made dine-in coffee shops popular among remote workers and students which is expected to create more UK coffee franchise market opportunities in the upcoming years.

The key players profiled in the UK Coffee Franchise Market Analysis include Costa Coffee, Caffe Nero, Starbucks, Esquires Coffee, Coffee Republic Limited, Dunkin’ Donuts, Mooboo Bubble Tea and Coffee, Heavenly Desserts, Black Sheep Coffee, and Caffè Ritazza.

Key Findings of the Study

• By cuisine, the coffee and bar segment was the highest revenue contributor to the UK coffee franchise market in 2023.
• By delivery type, the dine-in segment was the highest revenue contributor to the UK coffee franchise market in 2023.