More coffee shops and cafes are opening on the Isle of Wight, new figures show.
The number of businesses has risen from 55 in 2010 to 85 this year, according to the latest Office for National Statistics data.
Coffee shops and fast-foods outlets
The ONS figures for unlicensed restaurants include both coffee shops and fast-foods outlets.
And it is these two types of businesses that are driving the sector boom across the country, market analysts say.
But more businesses on high streets also means more competitors.
Boom only lasts until 2022 claim experts
The investment bank Citybank said in a report released last year that the number of coffee shops cannot keep growing at the same high pace and forecast that the boom in the sector will not last beyond 2022.
People in the UK drink 95 million cups of coffee each day, up from 70 million 10 years ago, according to a study by the Centre for Economics and Business Research.
One in 10 are sold in coffee shops, and more than half of those are served by Costa Cafe, Starbucks and Cafe Nero.
Independents also thriving
Mike Cherry, the Federation of Small Business’s national chairman said:
“Crucially, it isn’t just chain stores who are seeing their fortunes rise, but independents are also thriving in this food and drink boom.
“Not only does this help small firms, but also gives shoppers a greater wealth of choice and promotes good healthy competition.
“The caveat for this success is that all smaller firms, whether they are selling coffee, clothes or carpets are constantly threatened by ever-rising business rates.”
Threat of Brexit
A spokesman from The Project Cafe UK, a network of coffee professionals who analyse the industry, warned that despite coffee shops doing well, but Brexit could hamper the growth.
He said:
“The industry mood remained confident over the last years, with 71% of coffee sector executives, interviewed by us, positive about the trading environment.
“However, deep concerns over key Brexit issues, such as trade and jobs, remain – a climate reflected in dampened like-for-like sales and impeded outlet growth.”
Slower than average expansion
The data from the ONS shows that the opening of new coffee shops and fast-food restaurants on the Isle of Wight has slowed since 2016, but still increased by 6%.
The expansion of these businesses on the Isle of Wight was slower than the average for the UK.
Nationally, there are 28,900 unlicensed restaurants, nearly double eight years earlier.
While this growth in the sector may be good for the high street, it may be bad for public health due to the increased availability of fast-food.
Image: sassymom under CC BY 2.0
Article shared by Data Reporter as part of OnTheWight’s collaboration with Press Association and Urbs Media
