Coffee shop and cafe sales are expected to return to pre-pandemic levels by 2024. Caterlyst Insights predicts that more mergers and acquisitions are expected in the short to medium term amongst the small to medium chains. The end of the rent moratorium which was extended to March (2022), is likely to create a contraction in this sector if further measures are not taken to protect operators. Delivery will be here to stay, and many operators will look to increase consumer spend by extending their food and day part offer. The fifth wave of coffee shop brands will expand their offer and blur into an all day and evening location serving alcohol and cocktails. Diversification into retail, for the consumer to 'enjoy at home' will be seen via subscription boxes and mainstream retail outlets. Creative use of space in-store to maximise sales potential will tap into the work from home trend, offering working pods, free wifi and meeting spaces. Technology will drive frequency of click and collect orders, and table ordering. Operators can use this technology to understand their consumer demographics and trends. (image: pexels)