Price spread between fast-food and coffee chains exceeds 100%
Core items such as cappuccino and latte prices rose by about 9%, whilst speciality drinks have surged even more sharply.
The difference in pricing between fast food like McDonald’s or Popeyes and the UK’s leading coffee chains like Costa Coffee or Starbucks exceeds by as much as 100% as pricing pressures continue to mount, a report by Meaningful Vision found.
The average price of hot drinks increased by nearly 9% year-on-year in September, surpassing the overall fast-food average increase of 7%.
Core items such as cappuccino and latte prices rose by about 9%, whilst speciality drinks have surged even more sharply. Seasonal drinks, such as pumpkin spice or gingerbread lattes, cost on average 22–25% more than standard offerings, representing an 11% increase compared to a year ago.
Meanwhile, delivery is adding another layer to the price equation and making coffee even more expensive. The average markup for drinks ordered through apps is 15%, meaning an in-store coffee priced at £3.80 can easily reach £4.35 or more when delivered.
Delivery prices are rising faster than in-store: if coffee prices in coffee shops increased 10%, delivery equivalents rose 12%. Thus, for top coffee items, the difference in price growth is about two percentage points.
“Coffee is amongst the categories we see significant price growth this year. Higher prices for delivery and faster price growth in this channel may impact sales, especially with products like hot coffee, which consumers require delivered at a temperature matching their expectations, but which often arrives lukewarm or cold, or having been spilt in transit,” Maria Vanifatova, CEO of Meaningful Vision, said.
“This explains why the menu assortment on offer may be limited and why consumers routinely report the delivery option less favourably than the in-store experience. As competition intensifies and consumers become more selective about when and where they spend, coffee brands may benefit from rethinking their value proposition and how it aligns with their competitors.”
