Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
As more companies order their workers back to the office, queues at coffee shops in London are definitely getting longer.
With most of the capital’s chains charging around £4 a cup, it’s also an expensive habit. So when my caffeine-loving FT colleague Katie Martin challenged me to investigate how much time and money could be saved using coffee apps, I gleefully accepted.
As a skinflint who’s happy to drink the free coffee in the FT canteen, I confess this new wave of apps offering “skip the queue” click and collect ordering had hitherto passed me by. Every chain from Greggs to Gail’s Bakery now has its own app, making it possible to pre-order and pay for a coffee on your way into work, then sail to the front of the queue and grab the cup with your name on it from the collection point when you get there.
If you know, you know. But the shade that was cast on me by queueing commuters at Blank Street Coffee at Liverpool Street station when I swanned in just before 9am, picked up my pre-ordered pistachio latte (extra hot) and breezed out again seconds later. Aside from the convenience, huge competition in the “to go” sector means most apps have the added bonus of loyalty points, cut-price offers and the occasional freebie to entice returning office workers. So which of the current crop of deals might be right for you?
The answer depends on the strength of your love for various coffee brands (and their related food offerings) as well as your love of a bargain. But before I spill the beans, let’s consider why app-based ordering is becoming so ubiquitous.
The “free lunch” for the coffee chains is all the customer data they collect. All of the apps I signed up to asked me to enable notifications and location services (even if this was only used to find nearby stores while the app is open). If you want all the offers, you must opt into marketing communications. Setting up an account to order ahead, pay and collect points requires providing personal data including an optional date of birth (most chains offer a free birthday treat). The apps’ Ts & Cs will explain how your data will be used, if indeed anyone bothers to check.
But these insights into customer habits power better business forecasting. “There’s a whole industry building up around this, and it will only get better with AI,” says Steve Dresser, founder of the Grocery Insight consultancy. Incentivising customers to pre-order in designated time slots will help stagger demand and inform staffing models. “There’s nothing worse than idle hands in tight-margin businesses like hospitality and retail,” he says, noting the recent rise in employers’ national insurance costs.
To my amazement, all of the click and collect orders I made at different chains were ready and waiting for me. Some of my Instagram followers grumble that online orders are prioritised over queueing customers. As app-based ordering takes off, the execution risk will grow. Plus, chains must invest in decent technology. A quick glance at app store reviews shows caffeine hungry customers have zero tolerance of glitchy, clunky interfaces.
Forgo the convenience of ordering ahead, and taking a reusable cup still nets you a discount of £1 at Pure, 50p at Pret and M&S Cafes; 45p at Black Sheep and 25p at Starbucks and Greggs. Both Costa and Caffè Nero will give you an extra loyalty stamp, meaning your sixth coffee is on the house.
If chains get it right, the grail is customer retention. Greggs says its rewards app is now used for one in five transactions, and that users visit much more frequently. If you don’t order for a while, expect chains to ping you with an offer to tempt you back. And before you download any of these apps, ask a friend or colleague with the same taste in coffee to send you a referral code — this should net you each a further freebie.
Spilling the beans on the best coffee app deals
Pret A Manger With a £5 monthly subscription, join the Half Price Coffee Club and get up to five half-price hot or iced drinks every day. Buy anything else and earn a “Pret Perks” star. Ten stars unlock a free treat. No pre-orders.
Caffè Nero Collect nine digital loyalty stamps for a free coffee; reusable cup users get two stamps per order. Link your My Waitrose loyalty card for an extra free coffee and 25 per cent off selected food and drinks.
Leon The “Roast Rewards” subscription is £25 a month, with five free coffees per day and 20 per cent off food, with a further free reward for every £30 you spend.
Greggs A welcome freebie drink for downloading the app; collect nine digital stamps on various menu items to earn a 10th one free, plus frequent “double stamps” promotions. Coffee priced from £2.05 per cup (don’t knock it until you’ve tried it).
Gail’s Bakery A free coffee or loaf of bread (worth up to £5.20) just for signing up to the app, plus a free coffee or loaf for every 10th purchase. Orders above £20 get an extra stamp; refer a friend for more free bread.
Starbucks Earn 10 stars for every £1 spent; get a free drink every 500 stars; gold members (2,500 stars) unlock free extras.
Costa Buy a drink, earn one “bean”; exchange 10 for a free drink. Double beans awarded if you bring a reusable cup.
Blank Street Earn one loyalty point per eligible item; 10 points get you a free item.
Joe & the Juice The most complex loyalty app ever with points, secret offers and four “tiers” with high-spending customers granted fast track pre-ordering.
WatchHouse Collect six digital stamps and get a coffee on the house (the most expensive “rarities” coffees on the menu cost £21).
Coffee Club Get 25 per cent off coffee at Black Sheep, Soho Coffee and others with an annual subscription to this app, currently £9.95 if you buy it via the Time Out website (you have to scan and pay in store).
Others Octopus energy customers with a smart meter get a free weekly coffee in either Caffè Nero or Greggs via the “Octoplus” rewards section of its app. Three Mobile customers get a weekly £1 coffee at Caffè Nero and other local chains with the Three+ rewards app. Buy selected products at Compare the Market and get 25 per cent off coffee and pastries at Caffè Nero via the Meerkat app. Thankfully for this FT guinea pig, decaf coffee is also available.
Claer Barrett is the FT’s consumer editor and author of the FT’s Sort Your Financial Life Out newsletter series; [email protected]; Instagram and TikTok @ClaerB
https://www.ft.com/content/fb44c2fb-62cb-4488-8c83-44143f5420ad