The UK’s cafe industry is brewing strong, proving its resilience and bouncebackability in a post-Covid world: according to IBISWorld, the UK market size, measured by revenue, of the Cafes & Coffee Shops industry was £5.8bn in 2023, a year-over-year increase of 0.6%.
However, with this growth comes high competition and low barriers to entry, making location selection crucial for aspiring cafe owners.
In this article, we’ll be looking at the top UK locations to buy a new café business.
London
London reigns supreme as the UK’s coffee capital. Its bustling population, high disposable incomes, and tourist influx create a constant demand for coffee experiences, from established chains to unique artisanal cafes.
The Big Smoke is home to some legendary independent cafés, including Aussie-inspired Rosslyn on Queen Victoria Street. The venue distinguishes itself for its understated, sleek décor and high-quality coffee offerings, and is located in the financial and historic centre of London.
London-based Ozone Coffee Roasters and Feya are also ranked amongst the world’s favourite independent cafés, with the former being recognised for its expert roasting and ethical sourcing, and the latter drawing crowds for its cosmopolitan menu and pink aesthetic.
Manchester
Manchester city centre is another high-income location, with high footfall and international visitors, along with the added bonus of slightly lower commercial rent than in the capital.
Manchester’s Federal Cafe Bar is making waves, even topping some rankings as the UK’s best independent cafe. The café boasts three locations across the city center, each so popular that queues often snake out the door. TikTok has played a significant role in raising the profile of this café/bar, bringing in 1.1 million views.
The Home Counties, including Berkshire, Buckinghamshire, Kent and Surrey
Surrey, Berkshire, Oxfordshire, Buckinghamshire, Hampshire, Kent, and West Sussex, boast populations with higher-than-average income: for example, in Surrey, the average salary is £36,762 – £7,000 more than the UK average. Greater disposable income can translate to increased customer spending at cafes.
Notable examples of thriving establishments in the Surrey café scene include CHAI in Banstead, with its unique part-industrial, part-rustic aesthetic, Charlie & Ginger in Leatherhead, and Heather Farm Café on Horsell Common, amongst others.
The Lake District
The Lake District National Park is one of the most popular tourist destinations in the UK, hosting some 48m tourists annually and attracting everyone from seasoned hikers to those seeking a scenic escape from city life.
Fresher’s Café in Ambleside is one of Cumbria’s main café attractions, having garnered an impressive 5-star rating across 832 reviews on Tripadvisor.
Other popular spots include Copper Pot Café and The Green Housekeeper Café, whose no-nonsense home-cooked fare has proved popular with locals and tourists alike.
Everywhere else in the UK
While we have outlined some of the places with the busiest footfall for cafes, there are plenty of other locations across the UK where the café industry is brewing strong. Before buying a café, consider your competition, core audience and footfall opportunities – it could be that the small town you live in is in desperate need for your coffee shop concept!
Bonus tip: Negotiate rent! If rent and rates exceed 15% of projected sales, walk away and explore nearby options. A smaller kiosk in a high-footfall location can outperform a larger space in a quiet area. Areas in the UK with the highest commercial rent include London, Manchester, Birmingham, Cardiff, Leeds and Bristol.
