If you think coffee bars are tatty relics of the 1950s, take a fresh look at the retail sector and wake up to the coffee outlets boom of the 1990s.
All the major chains have ambitious expansion plans as competition for thirsty customers hots up (see Analysis, p48). There are currently around 200 branded outlets around the country but that could mushroom to seven times that, according to one of the main players.
The expanding coffee shop chains need money to grow if they are to cash in on our craving for designer caffeine. One, Coffee Republic, is already listed on the Alternative Investment Market, with two, Seattle Coffee Co and Madisons Speciality Coffee Bars, set to float. More will follow.
A coffee outlet can be as small as 93m2 (1,000 sq ft) or so and needs only A1 rather than A3 use. Potential demand for over 1,000 units tots up to a lot of space – and a lot of fees.
