Will we be able to enjoy lattes for €1 here in the Netherlands too?
Will we be able to enjoy lattes for €1 here in the Netherlands too?
A blog by Leonie van Spronsen on the trend towards cheaper catering, will we soon be able to enjoy lattes for €1 here in the Netherlands too? This blog has previously been published in Dutch on the website of the Van Spronsen & Partners, hospitality consultancy.
2 minutes read
Affordable cafés and restaurants are the talk of the town in the media
Recently, the first Bouillon in Amsterdam opened with much fanfare; this affordable restaurant concept from Paris allows diners to enjoy bistro specialities at much lower prices than in standard bistros and restaurants. I myself, for example, had an extensive three-course meal at Bouillon d’Amsterdam with more than enough wine for barely €60,= including tip. These are prices we haven’t been used to in Amsterdam for a long time. And there are more concepts like this that are trying to keep prices down. The reviewer for the Dutch paper ‘Het Parool’, Mara Grimm, has even started a weekly column about eating out in Amsterdam for a maximum of €50,=. Elsewhere in the country, we still see little of this, and the cheaper options, such as daily specials or student offers, are actually disappearing more and more. So we really are at the very beginning of a potential shift in the landscape.
Lattes for €1? In New York this is possible!
The above is an interesting development that we are certainly keeping a close eye on. But I actually want to talk about something else: coffee. We recently touched on the subject of expensive lattes and trendy coffees in the context of ‘what young people spend their money on’. This followed a question asked by RTL News about why ‘young people’ were drinking less beer. I pointed out at the time that the popularity of ‘to grab a coffee’ , which often involves expensive lattes or speciality coffees, or bubble tea and all sorts of other drinks, is having an impact on sales of more traditional drinks such as beer. After all, the saying remains: ‘we can only spend our money once’.
Now I’m seeing a new trend emerging online in the New York street scene. More and more Chinese coffee chains are setting up shop here, causing quite a disruption to the standard coffee market in this city. Whilst you can easily order a flavoured latte for $10 (€8.60) at Starbucks alone, the prices of a latte at independent and/or fancy coffee shops are considerably higher. Until now.
Over the past year, coffee chains such as Luckin, Cotti and Mixue have quietly established a presence in New York, and they’re doing so at a rapid pace. There are now 10 Luckin outlets, 11 Cotti outlets and 4 Mixue outlets. These generally look trendy and appealing, are situated in prime locations and have opening hours similar to those of Starbucks and the rest of the market. The difference? The price!
Luckin sells lattes from $3.50 to $8 and Cotti from $3 to $7. At Mixue, delicious drinks and ice creams are available in both traditional and exciting flavours for $1.69 to $4.99. Bargain-basement prices? Not necessarily, but significantly cheaper? Definitely. We’re talking about differences of 40% to 100% per coffee.
Has the coffee market in New York City changed for good?
No. But the growth is significant. The first branches of these chains opened less than a year ago, and now we’re already talking about 25 locations. That means a shift is definitely underway. If this continues, it will influence customers’ expectations.
When will this ‘trend’ reach the Netherlands and Europe? And when it does: will it become trendy? Will it be embraced en masse by the trendy crowds? Will the oat milk elite be at the forefront, drawn by the exotic flavours and attractive prices, or will they turn their noses up at it? If it catches on like the ‘Bouillon’ did, it will also disrupt our market. And then we’ll see: what will we do with the euros we have left over? Beer or more coffee?
