Coffee is driving foot traffic to bakeries and sandwich shops

Forget the fresh baked croissant, bread, or pastry, 81% of UK consumers say the quality of the coffee is major factor in which bakery outlet they choose, according to a new report from UK-based Lincoln & York, which roasts, packs and supplies private label coffee to retail, wholesale and hospitality businesses across the UK and globally. This has led to bakery/sandwich shop channel sales increasing 15.4% year-on-year for the 52 weeks ended 15 June 2025, per Worldpanel by Numerator.

The report reveals that almost half of consumers (47%) buy coffee from a bakery or sandwich shop once a month and one fifth of 25 to 34-year-olds do so once a week. Furthermore, 68% of consumers would recommend a bakery or sandwich shop to family or friends, based on the quality of the coffee alone.

So, are consumers buying only coffee or coffee and food? Ian Bryson, managing director at Lincoln & York, said, “It would be easy to assume that coffee is an afterthought in bakery and sandwich shops, when consumers visit to buy breakfast or lunch, but our research shows that’s far from the case. Coffee is driving consumers into this channel and is being purchased, even when food isn’t.”

The report finds that 40% of consumers say it’s split half and half when they purchase coffee from a bakery and sandwich shop; they always buy coffee, but only half of the time they buy food alongside it. More than 50% of 25 to 34-year-olds rarely or never buy food with their coffee in a bakery or sandwich shop. (Pastry is the top choice among food purchases by those buying coffee.)

The report also finds that 52% of survey participants switched to a new bakery due to the quality of the coffee. Among Gen Z (18-24-year-olds), 40% admit to either always or sometimes seeking out specialty coffee in a bakery or sandwich shop, for its quality and flavour.

The latte is the most popular coffee order in bakery and sandwich shops (followed by cappuccino and Americano), but this is driven by coffee drinkers aged 55 and over. According to Lincoln & York’s report, 53% of 55 to 64-year-olds tend to order a latte in a bakery or sandwich shop, which decreases to 26% of 18 to 24-year-olds. Cold coffee is now the most popular coffee order in this sector amongst this demographic, with 51% ordering an iced coffee or frappe.

“The significance of the younger demographic in coffee isn’t new news, but what we must take from this is that the bakery and sandwich sector needs to continue to meet their demands for new and exciting flavours to ensure they continue to get their caffeine fix in this channel,” explained Bryson. “The tastes and preferences of these younger shoppers will undoubtedly shape the direction of the coffee category for the future, meaning if cold and specialty coffees aren’t on your menu you’re missing a trick with this audience.”

Lincoln & York’s report shows that coffee is a key footfall driver in the bakery channel, with younger consumers willing to spend more on premium, “Instagram-worthy” drinks, while older consumers represent untapped growth potential. Per those surveyed, 45% of 18–24-year-olds said they spend between £5-£7 on coffee (circa USD $6.54 to $9.16) and over a quarter of 25–34-year-olds said the same. Additionally, 15% of those aged under 25 shared that they typically spend £7+ (c $6.54+) on coffee.

However, most consumers surveyed (77%) said they are paying £5 or less (c $6.54) for their coffee. Among those aged 55+, 84% claim to spend £5 (c $6.54) or less.

“Consumers are increasingly seeking high-quality, convenient coffee experiences that fit seamlessly into their day, and bakeries are rising to meet this demand with innovation, consistency, and accessibility,” said Bryson. “Prioritising quality coffee in this channel is crucial to winning new consumers and maintaining loyalty amongst existing visitors.”

To download the Lincoln & York report, click here.