What the coffee wars teach us about business branding
Experience is the new currency (that people are prepared to pay more for). The rise of the independent coffee shop is a lesson on how businesses and brands need to rethink their identity when operating in a competitive or saturated marketplace.
Costa Coffee may soon be no more. The coffeehouse giant runs more than 2,000 locations throughout the UK, making it the country’s biggest coffee chain and representing about one out of every six coffee shops nationwide.
However, consumers are avoiding the brand and its competitors like Starbucks and Café Nero in favour of the increasing number of artisan independents and specialty roasters. This is despite these often being more expensive than well-known high street coffee shops.
Indeed, according to the 2025 Allegra World Coffee Portal report, the number of independent coffee shops in the UK is expected to double in the next four to five years, whilst the ‘branded’ chains will see modest growth by comparison.
So, what is happening here – why are consumers going small and prepared to pay more for their coffee? The answer may simply be a rejection of the big brand concept in favour of small brand experience.
When I see Costa, I think cheap and convenient. I notice their self-service units at the petrol station while refueling my car, at the motorway service station on my way to work in Bath, and on every high street in every town I visit. There is nothing special about it – Costa Coffee is omnipresent, bland, and sterile.
In Bath, I feel spoilt. There is a plethora of small independent coffee shops. Some focus on specific types of coffee and teach their customers the “art of making the perfect cup,” like Colonna & Smalls.
Others are known for their artisan pastries and breads or quirky décor. What unifies them is the sense of ‘difference’ – an experience in one independent coffee shop will likely be different than in another.
This is what great branding and reputation building is all about. Word of mouth happens when a product or service is surprisingly good or different. It has a story worth sharing. ‘Have you tried X yet, you really should?’
That story could develop through an emotional connection between the customer and their provider based on shared values (for example, the business being a certified B Corp).
Maybe the business is new, in an unusual location, or simply quirky and appealing to TikTokers – this gives it social currency because it is a reflection on the individual customers’ own brand identity.
Whatever ‘it’ is that makes the business stand out is what makes people willing to pay more for their cup as a result.
Too many people become fixated on branding from a design perspective. Although the way your business ‘looks’ is important, what really matters is how you make your customers ‘feel’ – the expectation they have of doing business with you and the experience felt when doing so. That is great branding, it is better PR.
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Email me directly and let’s set up a call… or a coffee! I’m at paul@clearlypr.co.uk
