Greggs overtakes Costa to become largest overall operator as UK branded coffee shop market grows 3.5% in 2025: The UK branded coffee shop market grew 3.5% in 2025, with Greggs overtaking Costa to become its largest overall operator. Allegra World Coffee Portal’s market report, Project Café UK 2026, shows that 420 net new outlets opened over the last 12 months, as the segment grew to 12,313 outlets. Greggs is now the largest overall branded chain, with 2,737 outlets, having overtaken Costa Coffee, with 2,707. Starbucks remains the UK’s third largest operator, with 1,424 outlets, while US-based Blank Street is the fastest-growing major player after surpassing 50 outlets. Sales also rose, with the total market now valued at £6.8bn, representing 5.5% growth over the last 12 months. The report forecasts the market will exceed 12,780 outlets in 2027 and reach 14,380 by January 2031, while sales are expected to approach £9bn over the same period. The report said specialty coffee and premium hospitality are becoming more attractive value propositions, while operators such as Gail’s, Blank Street, WatchHouse and Hagen are finding success with on-trend menus targeted at affluent younger consumers. In terms of pricing, Starbucks increased prices by 17% or more across its drinks range in 2025, while Greggs implemented four price rises last year. Following record high green coffee prices in 2025, the average price of a regular latte rose 3.9% to £3.76, while iced, matcha and non-coffee ranges are challenging the dominance of espresso-based beverages. Operators such as Caffé Nero and Blank Street have successfully integrated iced beverages into their core menu and credited consumer demand for matcha as driving revenue growth, while Costa this month introduced its own permanent menu range. Allegra Group founder and chief executive Jeffrey Young said: “Despite a challenging trading environment, it’s clear that there are plenty of opportunities for growth in the UK branded coffee shop market. The future will see a greater array of innovative, highly focused and niche operators delivering pitch-perfect offers to discrete audiences. Younger consumers are gravitating towards coffee, and there is a vibrant casual hospitality scene for colourful, indulgent iced beverages, often influenced by Asian trends. We’re seeing matcha becoming a much more permanent fixture on UK high streets as well as an incredible array of flavours. The very best players will react and adapt to these new realities very quickly.” 

Buzzworks reports record turnover of £37.3m, calls for business rates system that supports investment: Scottish independent restaurant and bar operator Buzzworks Holdings has reported turnover increased 8.4% to a record £37.3m for the 53 weeks to 4 May 2025 compared with £34.4m the previous year. The group said it delivered “resilient trading in challenging market conditions” with underlying Ebitda of £3.32m compared with £3.77m the year before, which benefited from insurance income. A total of £2.4m was invested across new and existing sites, including the opening of Lido Musselburgh in December 2024 and a new Herringbone venue in Barnton in May 2025, alongside further refurbishment investment at Lido Prestwick and The Longhouse in Kilmarnock. In June 2025, led by Kenny Blair, Buzzworks completed a family management buyout, supported with investment from Alchemy Partners. The new partnership will provide additional financial and strategic support to accelerate new venue development, enhance the existing estate and strengthen the 22-strong business for future expansion as it aims to become a £100m-plus company within five years. In December, the group acquired the Nether Abbey Hotel in North Berwick, marking the company’s first move into accommodation. Blair said: “Growing revenue in the current business climate is a real credit to our teams and to the loyalty of our guests. We’ve continued to trade strongly while absorbing significant cost pressures. We’re operating against a tough backdrop in Scotland, from energy and labour increases to a non-domestic rates system that can disproportionately penalise hospitality businesses when they invest. Hospitality is a major economic contributor, supporting jobs, supply chains and thriving town centres. We want to strengthen the fabric of Scottish hospitality overall and help make our country an even better place to visit. To do this, we urgently need a rates approach that properly recognises that value and supports investment in our industry, rather than holding it back as it currently does. Looking ahead, the investment from Alchemy Partners is a major catalyst for our next phase. This inward investment into Scotland gives us the backing to move further, faster, enhancing our estate, strengthening our platform and accelerating expansion, including venues with accommodation.” To help mitigate rising costs, Buzzworks said it has strengthened cost controls including supplier tendering and “carefully managed” pricing strategies. Buzzworks features in the Premium Club Turnover & Profits Blue Book, the latest edition of which features 1,212 companies. Buzzworks’ turnover of £37.3m is the 339th highest in the database. Companies can now have an unlimited number of people receive access to Propel Premium for a year for £995 plus VAT – whether they are an operator or a supplier. The single subscription rate is £495 plus VAT for operators and £595 plus VAT for suppliers. Email kai.kirkman@propelinfo.com to upgrade your subscription.

Urban Pubs & Bars delivers group Ebitda of £17m: Urban Pubs & Bars, the London pub operator founded by Malc Heap and Nick Pring and backed by Davidson Kempner and Global Mutual, has said it generated group Ebitda of £17m over the past 12 months, with site Ebitda of £23m, which it called a “major milestone” for the 66-strong business. The Chris Hill-led business said in the last 12 months, it delivered Ebitda after central costs of £17m, an increase of £5m versus reported Ebitda of £12.3m for the financial year ended 27 April 2025 – an uplift of almost 50%. Propel revealed earlier this week that Urban Pubs & Bars reported a 32% increase in turnover for the year to 27 April 2025 to £79,647,531 (2024: £60,532,709), driven by new sites, the impact of annualising sales on the new sites that opened in the previous financial year and a “strong increase” in like-for-like sales from its existing portfolio. Pre-tax profit in the period, in which the business operated 55 sites, stood at £4,875,991 (2024: £1,601,223). The business also recently delivered its “strongest-ever Christmas 2025 trading performance”, which it said capped “an exceptional 2025”. During the five-week trading period to 4 January 2026, it said that festive trading was significantly ahead of the prior year, with like-for-like sales growth of 14.5% and a 40% increase in total covers. Hill said: “Delivering more than £20m of site Ebitda in the last 12 months is a major milestone for Urban. Our record Christmas trading and latest figures reflect the quality of our estate and the strength of our teams. The momentum we have going into 2026 is exceptionally strong.” The group recently completed its sixth acquisition of 2026 with the purchase of The Birdcage in East London from BrewDog. This followed the acquisition of five premium pubs, including a package of four established, high-performing sites acquired from Brunning & Price. These acquisitions built on the purchase of the Albion & East business in October.