Monthly Coffee Notes June 2020

COFFEE NOTES JUNE 2020

As shopping and spending habits continue to re-form, and consumer anxiety levels begin to ease*, we’re taking a look at the moves being made towards the safe re-opening of the hospitality industry, the concept of the ‘Third Place’ and how they affect café operators.

Last but not least, we’re pitting the flat white against the latte. We hope you’re staying safe and well, and we look forward to bringing you all the latest as we move forward towards a new normal.

Download an exclusive report for Nestlé Professional customers, on the impact of COVID-19 on UK Foodservice.

Source: 1 - https://t.uk.nestleprofessional.com/nes/nesUK_LP.jssp?lpk=%407QZu5hmxfqaYXhkTq5AXww%3D%3D

3-MIN READ

CAFÉ LIFE AFTER COVID-19 With moves being made towards re-opening some UK retail outlets, restaurants and cafés in July — providing certain conditions have been met — we’re taking a look at the immediate measures that café teams in particular can put in place to begin to make strides towards business as usual, whilst maintaining both their own safety and that of their customers.

Our partner brands are building customer confidence in re-opening by implementing clear point-of-sale and directional signage for use across outlets. Take a look at just some of the actions we can expect to see.

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For both served and selfserve outlets, marking safe distances and allowing people to easily adhere to social distancing rules.

Clear communication around hand-off to give waiting customers instructions around how their order will be delivered to them.

Condiments are likely to be kept back-of-house and will need to be requested by customers. This ensures they can still get their favourite hot or cold beverage made the way they like it, while remaining as safe as possible.

Pre-campaign POS and clear instructions like these can be rolled out by café operators and others across the hospitality industry to ensure they give their customers everything they’ll need to feel safe on-site and to begin the process of returning to life after COVID-19.

5-MIN READ

WHAT IS ‘THE THIRD PLACE’?

The idea of the ‘third place’ is not a new one. The concept refers to a space outside of our two typical social environments (home and work) where we go to find calm, comfort and happiness in a familiar location. Now, as we start to see the light at the end of the COVID-19 ‘tunnel,’ we must continue to explore how third places such as the coffee shop can offer us a sense of normality once again.

As the government eases lockdown restrictions, we are beginning to see the gradual reopening of cafés and coffee shops all across the UK. With months spent enduring limited social interaction, the reopening of coffee shops has seen regulars flocking to return to their ‘third place’ for their favourite takeaway beverages, demonstrating just how interconnected and dependent on each other we are.

Having been closed for so long, coffee shops — and all third places for that matter — are in need of this consumer support now more than ever. The coffee shop offers the perfect environment to ease our collective transition back to normality as a trusted space where we can go to enjoy social interaction while being kept safe in the ‘new normal’ of the world. However, coffee shops need to be able to demonstrate that their consumers’ trust in them is well placed, and adapt their business to make customers feel comfortable.

Brands and operators are encouraged to re-design, adapt, or double down on third place services — such as offering comfortable spaces to socialise where social distancing is as simple as possible, or shifting to a cashless experience with an increased focus on contactless payment — to help drive business for years to come. The top priority must be to adhere to safety protocols and keep customers safe.

UK coffee operators must — like countless other businesses — adapt to post-lockdown life, but in doing so they stand to thrive as customers begin to return to their trusted third places.

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2-MIN READ

CONSUMERS CONTINUE TO TRUST THE HOSPITALITY INDUSTRY AMID COVID-19 We’re seeing some positives in research conducted by key food and beverage players across the industry. With 63% of Brits surveyed wanting to get back to their local pubs, bars and restaurants as soon as possible 1 — providing the right safety measures are in place — and 42%1 citing visiting cafés and coffee shops as a priority in particular, let’s take a look at how else consumers are expressing their trust for the hospitality industry, and what safety measures they think operators should put into place.

OVER HALF

OF THOSE SURVEYED SAID THEY WANTED TO SEE HOSPITALITY ‘GET BACK TO NORMAL.’ 2

41%

SAID THEY WOULD BE PREPARED TO PAY A PREMIUM TO SEE ENHANCED CLEANING AND SOCIAL DISTANCING PRACTICES BEING HONOURED. 2

54%

THINK HAND SANITISER SHOULD BE PROVIDED FOR ALL CUSTOMERS AND STAFF. 2

Source: 1 - https://www.worldcoffeeportal.com/Latest/InsightAnalysis/2020/Coffee-shops-and-bars-among-outings-UK-consumers-m 2 - https://www.thecaterer.com/news/majority-keen-support-visit-local-hospitality-businesses-soon-possible-coronavirus-lockdown-reopen

47%

WOULD LIKE ALL STAFF TO BE TRAINED ON A NEW CLEANING PROTOCOL. 2

36%

THINK MANAGERS WHO SPECIFICALLY MONITOR SOCIAL DISTANCING SHOULD BE IMPLEMENTED. 2

22%

THINK ALL STAFF SHOULD WEAR PPE. 2

18%

THINK THEY SHOULD BE ABLE TO ORDER DIGITALLY. 2

2-MIN READ

‘COFFEE OVER CORONA’ MAP CAPTURES COFFEE’S PRECIOUS MOMENTS Coffee shop sales were set to reach an all-time high at the beginning of the year, forecasted to increase by £4 billion in the UK alone.1 But although the COVID-19 pandemic has forced a predictable downturn in café visits and sales, it seems as though the enjoyment of coffee around the world has remained a constant.

Bringing this positive news to light is the launch of a new usergenerated map called the ‘Coffee Over Corona Diaries.’ Created by Alaine Johnson of Singapore-based coffee training academy Bettr Barista, the online map shows captioned photos taken by homebound coffee lovers enjoying their daily fix. It’s incredibly heartening to note that the map has received submissions from coffee-lovers in more than 40 countries from every continent other than Antarctica!

Those of us in the business of coffee may be rightly concerned over the future of our beloved industry, but with the coffee market being as social-led as it is, and with many retailers reporting huge increases in online sales of their coffee grounds and products 2 , the re-opening of coffee shops around the world looks set to see a welcome surge in the return of consumer demand once the pandemic is under control.

READ MORE Source: 1 - https://www.hospitalityandcateringnews.com/2020/03/uk-coffee-shop-spending-2020-set-increase-4-billion-annual-growth-slows/ 2 - https://perfectdailygrind.com/2020/05/how-covid-19-continues-to-impact-coffee-shops-worldwide/

5-MIN READ

IS THE HUMBLE FLAT WHITE OUTSHINING THE LATTE? The flat white: short, strong, and foamy. The no-nonsense coffee with less milk content than its rival, the latte, and less of a pure coffee hit than an Americano. Made with a steamed ‘micro-foam’ (which is what ‘flat’ refers to) it’s the perfect choice if consumers want that strong taste of espresso without losing the creamy mouthfeel of steamed milk. But where did this fairly new menu addition come from, and what sets it apart from a latte?

There’s some debate over the true origins of the flat white — some say 1980’s New Zealand, some say Australia — and it’s noted that both countries were apparently confused by the European import of the cappuccino, using the opportunity to improve upon it and name their version, ‘the flattie.’

Once Australian Peter Hall and New Zealanders James Gurnsey and Cameron McClure opened their ‘Flat White Soho’ coffee shop in London in 2005, their “refined artisan-style coffee” was embraced on café menus all over London. Starbucks began serving the beverage in its London stores in 2010, and its popularity led the chain to introduce the ‘Flat Family’: flat black, flat mocha and coconut flat white.

Over recent years here in the UK, the flat white has become a worthy competitor to the latte for the crown of ‘most popular coffee drink.’ Its history as the ‘coffee connoisseur’s choice’ amplified its popularity with a growing number of consumers looking for that artisanal, high-quality coffee at a reasonable price.

Source: 1 - https://www.independent.co.uk/life-style/flat-white-coffee-culture-antipodean-mcdonalds-advert-starbucks-latte-a8246111.html

Jeffrey Young, CEO of Allegra, describes the flat white as “one of the key innovations in the last decade in the UK coffee market.” 1 Talking to The Independent, he said “it epitomises the Third Wave or artisan coffee scene, now accounting for often more than 10 percent of coffee beverages ordered in quality UK coffee shops.”

Essentially, the flat white is a strong white coffee: affordable and crowd-pleasing, and it’s for this simple reason that it’s won the hearts of coffee-drinkers around the globe.

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Nestlé Coffee Partners offers a range of brands and solutions to fit your customers’ requirements.

If you’d like to talk through any of what you’ve read and explore how we can help you leverage the insight we’ve shared this month, or if you’d simply like to catch up over a coffee, we’d love to hear from you.

We’re available on +44 (0)203 124 1029 (Option 2) or at StarbucksSupportEMENA@nestle.com