Coffee shops and cafes are dotted over the High Street of Exeter. With 3 Caffè Neros in the space of 400 metres of each other, 2 Costas 200 metres away, a Starbucks, and many more, big chain brands fight to maintain and increase their market share. As more shops open, is the space for independent coffee businesses becoming increasingly suffocated?
In the UK, Costa has the largest market share of 27%. Costa, Starbucks, and Caffè Nero amount to 43% of the market share. Though Caffe Nero has 12% of the UK market share, it has the most shops in the centre of Exeter. The shops owned by these chains are in the pride of place, front and centre of town. The convenience and accessibility of these stores bring in more customers. Whilst only big brands can afford the High Street, it is because of the location that big brands are able to draw more customers in and grow even bigger. Their growth comes at the expense of independent shops that are struggling to compete. Caffè Nero has placed a shop on each end of the High Street, diminishing reasons to go elsewhere. Brand loyalty plays a large role, as customers will ignore independent shops for brands they recognise and feel comfortable with.
Not only may new customers go to big brands out of convenience, but customers that have tried and tested become unwilling to go elsewhere. It is, essentially, impossible to compete with this as an independent coffee shop.
Brand loyalty plays a large role, as customers will ignore independent shops for brands they recognise and feel comfortable with.
Despite the statistics, I would argue that Exeter is different on this front. The Tiny Tasting Room, for example, is hidden away in the fold of Martin’s Lane off of the High Street. Whenever I’ve been in there it has always been bustling full of customers and sometimes even difficult to get seats. On Queen Street, Zukis and the Exploding Bakery attract plenty of customers with their uniqueness. There has been enough space for The Jar, another independent coffee shop, to have opened on Queen Street (rather than another branch). Not to mention the multiple independent coffee shops on Sidwell Street, far outdoing the big brands.
Though they may be slightly more hidden, independent coffee shops certainly have the space to coexist among branch coffee shops. Not only are these shops kept alive, but they seem able to thrive.