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Professional Spotlight
             High Street Hospitality - the strong winds of change














                   The winds of change sweeping                         keeping prices competitive
                  through Britain's high streets create                 requires innovative thinking.
                  turbulent conditions for coffee                       Simply raising prices risks
                  shop operators. These conditions                      alienating price-sensitive
                  present both headwinds and                            customers and causing a
                  tailwinds that require careful                        downdraft.

                  navigation of this evolving                           Looking forward, successful
                  landscape.
                                                                        coffee shops will need to trim
                   Recent data from the British Retail                  their sails and adjust course
                  Consortium reveals concerning                         beyond the traditional model.
                  crosswinds: high street growth                        Success will require creating
                  slowed to merely 0.4% in December,                    stronger community connections
                  whilst footfall continues to decline.                 through events and local
                  For coffee shops, which have                          partnerships, developing hybrid
                  historically depended on a mix of                     spaces that serve different
                  destination visits and spontaneous                    purposes throughout the day, and
                  drop-ins from shopping traffic,                       expanding revenue streams
                  these shifting currents demand                        through retail coffee bean sales
                  urgent attention.                                     and equipment.


                   The traditional model of coffee
                  shops benefiting from retail-driven
                  foot traffic is being blown off
                  course. With high street footfall
                  down 2.8% year-on-year and
                  shopping malls experiencing an even
                  steeper 7.2% decline, coffee shop
                  operators need to create their own
                  gravitational pull rather than
                  depending on neighbouring retailers
                  to drive customer flow.

                   These gusting challenges come                                                                    JANUARY/FEBRUARY. 2025 | ISSUE 40

                  against a backdrop of rising
                  operational costs. With wage
                  inflation at 4.3% and food costs
                  following a similar trajectory,
                  maintaining profitability while





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