The Rise of Drive-Through Coffee in the UK: What’s Brewing in 2025?

The UK coffee market has long been known for its high-street cafés and bustling independent roasteries. But over the past few years, a quiet revolution has been percolating — and it's happening behind the wheel.

As drive-through coffee becomes a staple of British consumer behaviour, this fast-growing segment is reshaping the way people access their daily caffeine fix. From market size to innovation in formats and customer spend, here's a deep dive into the evolving landscape of UK drive-through coffee in 2025.

Market Snapshot: Size, Scale, and Share

Once considered a novelty borrowed from American convenience culture, drive-through coffee has firmly embedded itself in the UK. As of 2024, there are now over 801 operational drive-thru sites across the country — a number that's nearly doubled over the last five years.

This market is dominated by a tight triumvirate:

  • Costa Coffee

  • Starbucks

  • Tim Hortons

Together, these three giants control a staggering 93% of the drive-thru coffee market, effectively setting the tone for expansion, pricing, and innovation.

Notably, the largest franchisee in the space is 23.5 Degrees, the UK’s first Starbucks licensee. With over 100 stores generating £83.5 million in turnover, the group has ambitious plans to hit 300 stores by 2028 — a testament to the segment’s resilience and future potential.

Real Estate & Investment: Rents Are Steaming

For investors and operators, property trends tell a crucial story. Drive-through formats require space — not just for building but for car flow — and this is influencing rent prices:

  • Small format sites (1,800–2,000 sq ft) are averaging headline rents of £55 per sq ft in 2023 — a sharp 25.9% increase from 2022

  • Larger format units continue to command lower rents, hovering under £40 per sq ft

  • Retail warehouse sites, often favoured for drive-thru developments, are now experiencing a vacancy rate of just 4.6%, indicating intense competition for space

These numbers highlight a growing constraint: there’s high demand but limited supply, especially for optimal roadside or retail-adjacent plots.

Brand Expansion: Small Footprint, Big Moves

The race to win the drive-through customer has kicked off an arms race in expansion, with brands adjusting not just volume but format.

Who’s Expanding Fastest?

  • Starbucks led the pack in 2023, opening 26 new drive-thru locations

  • Costa followed with 14 new units

  • Tim Hortons has been strategically planting flagships across urban-fringe areas

But it’s not just about more sites. It’s about smarter design.

To overcome space limitations, brands are developing compact drive-thru formats, sometimes as small as 1,200 sq ft, incorporating pre-fab construction and modular layouts. These are cheaper to build, faster to deploy, and ideal for urban or mixed-use developments.

Consumer Spending: Loyal, Lucrative, and Latté-Loving

While coffee culture is well established in the UK, consumer spend at drive-thru locations reveals just how valuable these channels have become for chains:

  • Starbucks customers spend an average of £663 annually

  • Costa regulars: £624.75 per person

  • Caffè Nero (fewer drive-thru locations but notable loyalty): £599.35 per customer

These figures are particularly impressive when you consider the transactional nature of drive-thrus. This isn't about lounging with a flat white — it's about convenience, consistency, and habit.

Brands that can optimise the speed of service and digital integration (e.g. pre-ordering via app, loyalty rewards) will capture more of this high-frequency traffic.

Challenges in the Pipeline

Despite strong growth, operators aren’t cruising along without obstacles. Several challenges are brewing:

1. Planning and Permitting

Local authorities remain cautious about approving drive-throughs due to:

  • Traffic concerns

  • Zoning restrictions

  • Sustainability considerations

The planning process can add 12–18 months to new developments, slowing rollout timelines and increasing pre-opening costs.

2. Rising Development Costs

From construction materials to labour, the cost of opening a new site has increased significantly since 2021. Developers are being squeezed on both ends — with higher rent and inflated build costs, the ROI window is tightening.

3. Property Constraints

With retail warehousing space nearing capacity, brands are being forced to consider secondary locations or edge-of-town plots. This impacts visibility, footfall, and traffic — critical metrics for success.

Opportunities Percolating

Still, with every challenge comes opportunity. The UK drive-thru coffee market is ripe for innovation — and those who adapt fastest will likely reap the rewards.

1. Smaller, Smarter Formats

As noted, the shift to compact drive-thru models opens up a wider range of real estate possibilities. Think:

  • Pod-style outlets

  • Drive-up windows added to existing cafés

  • Dual-lane systems for higher throughput

2. Tech and Digital Integration

Order-ahead, click-and-collect, and contactless loyalty programs are increasingly expected by consumers. Chains investing in app ecosystems and data-driven personalisation are gaining a clear edge.

3. Menu Diversification

With more Brits embracing plant-based, health-conscious, and non-coffee options, drive-thrus are becoming sites for:

  • Functional drinks (e.g. matcha, protein shakes)

  • Breakfast and grab-and-go meals

  • Sustainable packaging innovations

Future Outlook: What’s Next?

Looking ahead, the broader UK branded coffee shop market is expected to surpass 10,500 outlets by 2025, up from around 9,885 in 2023. Meanwhile, the drive-through segment will continue to punch above its weight, driven by:

  • Changing commuter habits post-pandemic

  • Demand for convenience in rural and suburban areas

  • Brand loyalty paired with digital rewards ecosystems

By 2029, market revenues are projected to exceed £7.2 billion, with drive-thru formats contributing an increasingly large slice of that pie.

Final Sip: Is Drive-Thru Coffee the Future?

In a nation that once prided itself on tea time, drive-through coffee has become a modern ritual. Whether it’s a latte on the school run, an espresso between meetings, or a cappuccino on a rainy motorway, the UK’s evolving habits are firmly caffeinated and on-the-go.

For brands, investors, and operators, this is more than a trend — it’s a strategic growth lever. The combination of consumer loyalty, operational efficiency, and scalable formats make this one of the most exciting segments in the UK food and beverage landscape today.

So buckle up — the next big thing in coffee isn't in your hand. It’s in your car.

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