Independent Coffee shops steal market share from the big players.

Read the full report here:

With the London Coffee Festival just around the corner, a growing coffee culture and millennials being told that they need to cut out the Latte’s if they want to get a mortgage, we investigated how Coffee drinkers were getting their fix analysing whether they were a slave to the slick branding of the big chains, or whether the stronger beans of Independent stores won out.

Coffee wars: Chain vs. Independent

The battle has commenced, McDonald’s launched a campaign recently making fun of the often complicated world of the Independent coffee shop, by highlighting their simple menu of no nonsense coffee, available at a low price.

Through our analysis, using Rippll’s 1st party always-on data, we can reveal that, although chain stores get a higher amount of visits, they struggle to retain those visitors for a second time, indicating that brand loyalty is a weak point, especially considering the market is worth £7.9 billion a year.

The numbers; Chains losing 2nd visits

Left Graph: First visits to Coffee Shops Right Graph: Second visits to Coffee Shops

The above graph shows that Independent Coffee Shops are catching up when it comes to stealing market share from chains such as Nero, Costa and Starbucks, as Coffee drinkers are more concerned with taste than brand loyalty.

Index showing second visit swing in favour of Independent outlets

The chains lost out on almost 20% of second visits from users we analysed, whilst the Independent shops gained just over 25%. This shows thegrowing trend for British caffeine addicts to hunt out the best coffee around, and gives a clear indication as to why McDonald’s have reacted by launching a campaign against the new ‘hipster’ culture.

What does this mean for the big chains?

Despite there being a shift away from the chain Coffee Shop, the brands are still able to keep you in their store for longer. Our data indicates that, with the lure of free Wi-Fi and charging ports, customers spent on average 3 minutes longer in a chain store.

Customers to Chain stores are spending on average 3 minutes longer than those who visit independent stores

This may not sound so impressive, however the highest average dwell time we analysed was at Starbucks, which came in at 47 minutes, and the next two stores, Costa and Caffe Nero both had average dwell times of 42 and 35 minutes respectively. Showing that branded coffee outlets may be losing market share, but are able to keep customers in-store for longer, increasing the potential for added revenue.

Which day of the week see’s the most visits?

We are also able to analyse which days are the most popular for Chain and Independent stores and it seems that Tuesday is the most popular day to visit your favourite Costa, Starbucks’s et al. followed by a Saturday trip, possibly after a trip to the shops.

Visitation for Branded coffee shops

For those who need a shot of espresso to wake up on a Monday morning, an Independent coffee shop is the way to go, with 17% of visits occurring on a Monday.

Visitation for Independent Coffee Shops

Want to get more insights into the UKs growing army of Coffee lovers? Read the full report here:

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