Following new price increase announcements from Costa Coffee Express machines across the UK;

Ramsey Baghdadi, Foodservice Analyst at GlobalData, a leading data and analytics company, offers his view:

“Costa Coffee’s price rise will find a tough audience in cash-strapped Brits, many of whom are being forced to tighten their purses. GlobalData’s research shows that close to two thirds (59%)* of UK consumers are worried about their financial situation.

“Vending machines are at a higher risk of backlash from customers compared to restaurants or coffee shops due to three main factors: consumer expectations, dining occasions and the out-of-home experience. Given the rate of inflation, self-service vending channels such as Costa Coffee Express may lose customers to home-made instant coffee and retail meal deals if they can’t meet customer expectations – putting many between a rock and a hard place.

“Even though Costa is an established brand, its name may not be enough to sustain its self service machine staying power as the machines do not provide the same experience that you would get from going into one of its shops. As such, the introduction of regular promotions, discounts or a range of lower-priced items in its vending machines will be necessary in the long-term for Costa to retain value-seeking and busy customers.”

*GlobalData’s 2022 Q3 UK Consumer Survey, August 2022, Sample Size 553 Respondents, 59% of respondents are ‘extremely’ or ‘quite’ concerned about their financial situation