Looking for a recession proof business -open a coffee shop.

by Chee Leng

Caffe Nero

Caffe Nero

In a recession, coffee shop post a 13% rise in revenue, open more than 400 outlets and it is happening in the worst of recession since the Great depression.

Anyone would tell you that coffee shop business, similar to any other business would suffer a dip in revenue. It makes sense, after all, if I am tightening my belt, I am very unlikely to go to Starbucks for a cuppa right?

But, in a research done by Allegra Strategies for the UK market, they found that the opposite happened. Coffee lovers actually increased their visits to coffee shops.

Branded coffee chains such as Costa coffee, Starbucks, Caffee Nero all post a 13% rise in revenue (that that is about 1.94 billion GBP).

And even companies that are not traditional coffee company are doing well. Between Mcdonalds and J D Wetherspoon, they added another 468 outlets, that is a growth of 54% within a year!

So, now you have a very bad recession which technically UK have not come out of it. Then, you have stellar results from all companies selling coffee -so, isn't that the business to be in?

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