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15 June 2017

Price Watch: Play your cards right

All eyes were on the General Election this month as we pounded the streets to gather insight for our latest edition of Price Watch. And caution was the watchword as operators hedged their bets and kept prices the same. Caffè Nero has edged its double espresso up 5p to £2.15, but that’s the only mover in a market that’s otherwise holding its prices.

Meanwhile, it might be sunshine tempting consumers out onto the high street, but it’s operators’ loyalty schemes that keep them coming back for more – they are one of the top 15 factors driving growth across the out of home food and drink industry1. And loyalty schemes aren’t just for high street operators – our workplace insight revealed that 45% of workers would buy more coffee from workplace-based coffee outlets if a loyalty scheme were in place.

 

Loyalty card deals are flying high

Phil Smith, head of category and insight, UCC Coffee UK & Ireland says: “Loyalty card deals are flying high, and have made the leap forward from simple stamp collecting to integrated loyalty and mobile payment apps. The Caffè Nero app, launched in April, means customers can collect digital stamps, receive tailored offers, and link their credit card for a speedy all-in-one service. It follows similar moves by Starbucks and its app for iPhone, offering customers a personal dashboard; and Costa with its Coffee Club card offering VIP offers to holders.

“Loyalty cards are still popular, but they have to be easy and seamless so they provide real value to customers. The pace of tech development means pre-ordering via mobile apps is becoming a reality now, so the next challenge for operators could well be how they preserve that other guarantee of customer loyalty – authentic and personal service.”

*All prices are correct as of 8 June 2017. Prices quoted are based on ‘drink in’ prices unless unavailable. All prices are sourced in London and may vary regionally. 1 MCA Eating Out Report 2016

Download the complete Price Watch here