8 coffee shop industry trends operators need to focus on in 2024

4. Rising demand for “The Next Big Thing”

Speciality coffee is expected to continue drawing consumers who appreciate the attention to detail and are willing to pay a premium.

Meanwhile, some operators are also realising new revenue streams by introducing coffee-flavoured products like ice cream and chocolate bars. These creative offerings can attract a wider range of customers throughout the day, not just for their morning coffee.

Think about how these upgrades or add-ons can be presented to your guests – especially on digital order channels – in non-intrusive ways. The more organic the suggestion is during the buying experience, the more likely it is that they’ll take up these speciality items that can boost revenue.

5. Building an app that works for your brand

Streamlined loyalty scheme apps are becoming increasingly popular within the coffee market.

High-street artisan bakery GAIL made headlines last year with the release of its new customer loyalty app, which combines in-store and digital point earning into a single loyalty scheme that lives on its mobile app. The app’s success reflects the industry’s move towards more streamlined processes and the importance of ensuring these digital channels reflect your brand’s unique character. This was especially significant for GAIL’s, with the team dedicated to balancing the brand’s iconic artisan character with a new digital space.

6. Staff retention over recruitment

While the labour crisis of previous years has eased, the focus has shifted to retaining quality staff. Innovative training programs and a supportive work environment are key strategies being adopted by coffee shop operators in 2024. Of course, the key factor in retention is wage levels. According to research from BlackBox, 92% of operators surveyed say that increasing wages for non-management employees has a significant effect on turnover.

And creating a positive working culture where you really listen to your staff should be at the heart of your retention strategy, too. This sentiment was backed up by Edyta Stec – Director of Operations at GAIL’s Bakery during last year’s lunch! trade show.

“Being interested in what our team is thinking about is so important. Asking your team constantly what they think, how can we be better for them, and what they want to achieve in the business.”

7. Balancing tech with the human touch

As technology becomes more integrated into coffee shop operations, maintaining the unique brand experience is crucial. LEON, for example, has worked hard to ensure that digital ordering systems enhance rather than detract from the customer experience. The goal is to provide a seamless, efficient service while retaining the brand’s distinctive charm and warmth.

“When you walk into a LEON, you should have an experience that’s full of sunshine,” said Mariam French Marketing Director at LEON.

“Before the introduction of digital ordering, you’d get that instant warmth. Now with guests going to the kiosks, how do we give that big warm welcome?

What we’ve had to do is just shift our thinking a little bit. Does the digital ordering look and feel vibrant? So that sunshine is coming across with the imagery, the colours, the food, does it still look delicious?

And the next bit was taking our team on a journey: when you’re handing over the food, that’s the opportunity to have that connection. You make eye contact, you have a little chat, call them by their name if it feels appropriate.”

8. Revamping the menu

With changing consumer preferences, menu engineering remains vital. The emphasis is on optimising menus for profitability while responding to consumer trends and demands, such as the growing interest in health-conscious and plant-based options.

In fact, while price increases may be inevitable in 2024, a recent poll from the GCA showed that this can be absorbed by catering to millennial customers’ preferences – around 64% of millennial buyers say they would pay extra for higher-quality drinks.

As the coffee shop industry approaches 2024, these trends underscore the importance of innovation, customer experience, and strategic adaptation.