UK coffee chains box clever with widening range of automated coffee solutions

Petrol stations remain the most popular locations for premium vending machine coffee purchases (61%), ahead of convenience stores (48%), supermarkets (42%) and hospitals (22%). 

While 96% of UK consumers surveyed indicate that modern machines are easy to use and 71% say they are visually appealing, concerns remain about the cleanliness of units, particularly machines installed at third party locations. Forty-two percent of UK consumers attempting a premium vending coffee purchase over the last 12 months found the machine out of service, while 26% encountered a machine they considered too unclean to use. 

A We Proudly Serve Starbucks self-serve kiosk | Photo credit: Selecta

Demand for dairy alternatives set shape next generation of premium self-serve machines
  

A majority (77%) of UK premium vending and self-serve consumers surveyed emulate their coffee shop order when using a machine. As plant-based dairy alternatives gain traction across the UK branded coffee shop market, 76% of industry leaders surveyed state demand for dairy alternatives in premium vending machines as significant. 
 

Oatmilk is the preferred dairy alternative for a premium vending and self-serve machines for 50% of consumers. Inclination towards oatmilk was higher than the following four dairy alternatives combined – soya milk (14.4%), almond milk (13.7%), coconut milk (13.4%) and hazelnut milk (3.7%). Seventeen percent of consumers surveyed had ordered a premium vended beverage with a dairy alternative within the last 12 months. 

However, the risk of cross contamination and the provision of allergen information remain issues, particularly in older machines which lack the fridge space and mechanisms to keep dairy and non-dairy products separate.  

Consumers still value the human touch in coffee shops 

Advanced super-automatic espresso machine technology is closing the gap between the speed of service and consistency of coffee beverages produced by baristas and automated machines. More than 20 branded coffee chains in the UK currently use super automatic bean-to-cup coffee machines in-store, including Starbucks, Greggs and Pret A Manger. 

While super-automatic espresso technology is currently present in 46% of all UK branded coffee shops, 47% of consumers surveyed disagreed they would be open to a fully automated coffee shop experience – with many operators blending automatic technology while retaining barista control over milk frothing, steaming and handcrafting latte art. 

Commenting on the report findings, Allegra Group Founder and CEO Jeffrey Young said: “Given the need for convenience in coffee consumers’ busy lifestyles, it is very encouraging to see how the UK coffee industry is responding to this demand. Eleven percent annual unit growth is an impressive achievement in a highly challenging economic climate.”  

The Automation Report UK 2023 identifies the size of the UK premium vending market, in terms of units and growth rates, providing an in-depth strategic examination of the current retail environment. With over 2,000 online surveys with UK premium vending and self-serve coffee consumers and more than 100 in-depth interviews with leading industry insiders in the UK, the report provides a compelling analysis of key market topics and unpacks the key opportunities and potential future barriers to growth in the segment.

To purchase the report or to make an enquiry, contact:

Sam Shuckburgh, Commercial Partnerships 

sshuckburgh@allegra.co.uk

 +44(0)20 7691 8800