literature review

One can define a coffee shop as a kind of cafe or a restaurant that serve various kinds of coffee, tea, pastries, cakes, or any light meals (Revers,2008). This literature review would help in evaluating the various criteria to open a new coffee shop around Liverpool Street in London. The number of chains of coffee shops grew to 5.6% and it contributed to 29.1% in the market share in the UK during 2005, but the small independent coffee shops grew by only 2% (Kumar S, 2005). Among 14,022 coffee shops in the UK 62% of the customers visited the major coffee shops of the 3 major brands Costa Coffee, Starbucks and Cafe Nero (Allegra S, 2011). With Costa coffee having 40.4% share, Starbucks 30.7%, Cafe Nero 14%.Even the independent coffee shops are following the trends of the major coffee shops and trying to follow their footsteps and are becoming potential competitors. They are trying to build a good customer relationship and are providing good quality products at a lower rates.With the big brands already having a huge market share and a lot of small independent coffee shops proving to be potential competitors it would be quite a challenge to start up a new shop within the locality.out of the total coffee consumers 47% prefer sitting in coffee shops and about 8.3% prefer take aways (Mintel, 2010). Apart from that consumer behaviour also depends upon upon the taste of the coffee. Research by Costa showed the taste of the coffee is a matter of concern (Mortimer R, 2011). Providing a suitable product in a suitable manner according to the demographics of the area is an important factor for the success of a coffee shop.For example : in this case it is near a train station where most of the consumers are commuting so take aways would be more preferable than sitting in and since most of the commuters use the foot path it would be better if it is on the same side rather than on the other side because consumers would not cross the road just for coffee.Therefore for a coffee