The market for coffee and sandwich shops continues to grow in the branded sector, in terms of both numbers of outlets and turnover at the major operators, despite the reported saturation within the market. However, growth of the branded shops is at the gradual expense of the small independents and minor multiples, as the majors expand outside London and the South East into high streets at popular historic, university and tourist towns. They are also taking new business at out-of-town shopping centres, concessions within other retailer’s outlets, and travel-related locations such as railway stations, airports and motorway service stations. Profitability of the branded operators is assisted by the fact that outlets outside London, in particular, are likely to reach a level of profit more quickly than those in high-rental, prime central-London locations.

Growth is supported by the continued increase in the proportions of 45 to 54 year-olds within the total population, of ABs and of women in employment all of whom are prime customers of coffee and sandwich shops. The preference for eating at these venues, rather than having lengthier and more expensive lunches at restaurants, is sustained by the continuing need for shorter lunches within a busier working life. In addition, many women choose to eat at coffee and sandwich shops, as they are perceived to offer a ‘lighter’ and more friendly atmosphere.

The leaders in the branded coffee-shop segment are Starbucks, Costa and Caffe Nero, while their equivalents in the branded sandwich-shop segment are Subway, Pret A Manger, Bakers Oven, O’Briens and Benjys. These are gaining share within the total branded outlets sectors, particularly through their offering of a wider range of food and drink products. These are often higher-margin items, improving profitability, with this tactic blurring the distinction between coffee and sandwich shops in general.

The ‘top ten’ branded coffee-shop according operators are estimated to a study available on www.marketsensus.com to now represent 59.3% of the total branded sector in terms of outlet numbers and 70.6% by turnover. All branded coffee shops are estimated to account for 31% of the total coffee-shop market by outlet numbers, and 34% by turnover.

The sandwich-shop sector is more complex, with one estimate putting the total number of

cafes and takeaway food shops at around 30,000. The more major branded sandwich shops represent only a very small share of this total, although Subway, Pret A Manger and Bakers Oven account for an estimated 72.2% of the ‘top 10’ branded shops by outlet numbers, and 79.1% by turnover.

Despite growing competition from other retailers such as grocery multiples and department or variety stores the branded coffee- and sandwich-shop sectors are predicted to grow at a rate of between 7% and 11.8% per year in value terms over the period from 2005 to 2009. The total coffee-shop sector is estimated to grow at a rate of between 3.9% and 5.3% per year, reflecting anticipated gains in share by the branded coffee-shop operators.

The womens London based luxury designer is best know for shoes. Choo is of Chinese descent and was born in 1961 in Penang, his family were shoemakers and he made his first pair at the young age of 11. He attended what is know the London College of Fashion which he completed in 1983. He began is work in a worshop in East London and became a expert at design and craftsmanship, and was featured in the 1988 issue of Vogue magazine, were he got an eight page spread. He was regularly visited by the Princess of Wales, Diana which helped him tremendously.

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Choo and Tarmara Mellon, who was an editor at Vogue UK, co-founded Jimmy Choo Ltd in 1996. Choo sold 50% of his company in 2001 for £10 million. Since the sale he is focused mainly on his exclusive Couture line, which is licensed under Jimmy Choo Ltd. You can see the Jimmy Choo ready-to-wear line by special appointment at Connaught Street. The line was expanded to include exclusive handbags, you can find many Famous Stars wearing some of the fabulous designs. Choo is a London resident and spends most of his time their inspiring young designers.

Tamara is still the creative inspiration behind many of the designs that are produced with the Jimmy Choo brand. The company has done very well with its partnership in 2001 with Equinox Luxury Holdings Ltd., Ceo of Equinox also became the Ceo of Jimmy Choo Ltd. and has opened 26 new stores and added many new products to the line.

In 2007 another major stake was Tower Brook Capital Partners who bought in and the company was valued at £185 million. This year also had a new CEO at the helm, Joshua Schulman joined Jimmy Choo and spent most of his career with renowned luxury brands such as Yves Saint Laurent, Gucci, Richard Tyler, and international retail groups such as Gap Inc and Marc Jacobs for Perry Ellis. His experience and passion has moved the company forward into a top brand for the stars.

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