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Do coffee shops need to re-evaluate their value proposition?

  • Writer: Peter Backman
    Peter Backman
  • Jun 3
  • 1 min read

In this week’s issue, I cover more insight from across the pond.  First up, is coffee expenditure.  Recent data show that 85-90% of American coffee moments occur at home and only 10-15% in cafés. Whilst out-of-home consumption is slightly higher in the UK at 20-25%, the vast majority of coffee is prepared domestically.  Is the coffee shop sector fighting a losing battle against the home coffee machine?  Is it time for foodservice operators to re-think their value proposition?  Perhaps the answer lies in complementing rather than competing?


In my insight, I share an innovative initiative from the Kraft Heinz Company.  Americans dining via Uber Eats can now easily identify restaurants serving Heinz Ketchup via a “Heinz Verified” badge of honour.  The scheme – currently live in Chicago, Dallas, Denver, Los Angeles, Miami and Pittsburgh - offers participating restaurants a comprehensive support package including consumer data, trend analysis, product samples, branded merchandise, and marketing assistance. Customers ordering through the app receive $5 off orders above $30 from these ketchup-approved venues.





 
 
 

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