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Matthew Hopkinson, Director at Local Data Source following the launch of their coffee shop report discussed the current market and coffee shop trends on the BBC news. The following points and observations are worth noting:

  • Office spaces are squeezed and coffee shops are offering alternative business meeting zones
  • Coffee shops feel and are safe
  • What are the ways that coffee shops use their space apart from selling beverages?
  • Coffee shops are an extension of the office and living rooms partly due to wi-fi connectivity and variety of seating arrangements.
  • Dwell time; get the customer comfortable, they spend more time in your store and then more money.
  • McCafe concept launched in Paris and anticipated to launch in London in 2010. Coffee store competition anticipated to heat up.

Following the McCafe story Bussiness Week covered McDonald’s development intentions in an article. Below is an extract and here is the whole article.

“McDonald’s is rushing to grab market share where Starbucks has hesitated. While Starbucks continues to avoid Italy, for instance, McDonald’s opened its first Italian McCafé in Milan in 2005. Today it has 65 of them across the country. And McDonald’s is undercutting Starbucks on price. At McCafés in Paris, an espresso costs $2.50, vs. $2.80 at Starbucks.

….

mccafe shop 02European franchisees like McCafés because they encourage customers to stop in for breakfast and during off-peak hours. … And the cafés increase McDonald’s appeal to women. “It’s impossible to bring [children] to a traditional French café,” says Nelly Bourji, a Parisian who drops in at a McCafé once a week. “You can’t all fit around the tiny tables.” As for Starbucks, she says, “There are too many teenagers.”