Coffee Shops in the UK – Why The Big Names are Struggling

·         Starbucks – the second largest competitor in the UK, with over 500 owned coffee shops and a further 900 franchises, last year had to close some of its UK outlets as part of a wider global restructuring programme.

·         Pret A Manger, a fast food and bakery chain with a significant coffee offering, has written off a third of the value of its 2018 acquisition by European investment group JAB, last September.

·         the number of coffee shops however in the UK increased by 2.4% in the nine months to September 2025 (source: Meaningful Vision). Growth was driven mainly by premium chains such as Black Sheep Coffee.

·         Parts of the UK coffee industry are thriving, typically smaller, more agile businesses.

·         Black Sheep Coffee is a prime example of this. Founded in London in 2013, the chain has grown gradually through acquisitions and various rounds of funding, expanding into four countries overseas (France, the US, the United Arab Emirates and the Philippines).

·         Blank Street, a matcha specialist founded less than four years ago, has already reached the milestone of 40 outlets and tripled its turnover to almost £36 million (€41.5 million) in the 2024 financial year.

·         The varying fortunes of the brands we have mentioned are also attributable to the changing tastes of young people, which smaller chains are able to intercept more swiftly and effectively.