Coffee bars "need to branch out"

Owners of coffee bars should install outlets in large office buildings to stave off competition from bar and pub chains, according to a new report.

Pubs that have reinvented themselves as cafés during the day pose an increasing threat to coffee bars, says New Directions in Drinks, a report by market analyst Datamonitor.

Some coffee bars are already fighting back, the report says, by opening up small outlets to sell light meals, snacks and drinks in the offices of banks in the City of London, taking trade away from food delivery services.

"Coffee bars like Starbucks have been very successful, but that growth will eventually dry up. Consumers will tire of branded coffee bar chains in the same way that they're getting sick of All Bar One and its pine tables," said Datamonitor's drinks industry analyst, Richard Robinson.

Robinson said workers liked to have an in-house branded coffee bar because it enabled them to buy food and drink without having to travel far.

The main advantage for employers was that it meant staff did not spend long away from work in search of snacks.

The report also found that growing numbers of people were eating breakfast at their desk and that many single people were attracted to coffee bars because they felt unwelcome in restaurants.