Meanwhile, the Manchester press
has talked of 'coffee wars' in its
city, with the arrival of its first
McDonald's store re-branded as a
café - what the
chain referred to as
its
'contemporary
coffee lounge'.
According
to
Allegra, the total
'branded' coffee-bar
population (that is,
chains of any size,
but not independ -
ently-owned single
unit cafes) grew by
5.6 per cent in the seven months to
February, and now total 2,428 units
in the UK. Growth outside London
was of 7.2 per cent. The growth
outside London is forecast to
increase by 6.2 per cent per annum
until the end of 2006.
Costa is the largest out-of-
London operator, with 244 regional
stores against Starbucks' 220.
Just before the report appeared,
the Coffee #1 chain of South
Wales, which has already moved
across the border and opened in
England, told Coffee House that it
believed in a growing provincial
market and was targeting 'bustling
market towns' within a 90-minute
radius of Bristol.
"We deliberately steered clear of
the London boom," said managing
director James Shapland. "We
were sceptical of the economics of
it, and we suspected that the
results there would make people
even more sceptical of coffee as a
business. But we thought that if you
put the idea in a provincial per -
spective, it would make sense.
"I don't think every single town in
South Wales is ready yet, but there
is still significant potential. In towns
where they would not have paid
£1.70 for a
latte, they now
will. We can
see a massive
growth in take-
away, and we
are certainly
shifting toward
the all-age US
model.
"There will
be an increas -
ing level of competition in our area
over the next two years. My
biggest fear is a replay of Oxford
Street, and eight stores within a
hundred yards."
Coffee #1 - see page 11
1
Make the best of
your talent
- pages 12-13
The most expensive tea-bag in
the world has been created to
celebrate the 75th anniversary of
PG Tips - it is coated with dia -
monds worth £7,500.
A hundred diamonds are inside
the bag, another hundred outside,
and 80 are on th