Greggs has overtaken Costa Coffee to become the largest UK coffee chain by number of outlets, a result that confirms the growing importance of bakery and food-to-go operators in an increasingly competitive market characterized by a blurring of boundaries between coffee consumption, fast food restaurants, and takeaway food purchases.
According to Allegra World Coffee Portal's Project Café UK 2026 report, Greggs has 2.737 locations, compared to Costa Coffee's 2.707, taking over a position traditionally occupied by the specialist chain for the first time and demonstrating how British consumers have now become accustomed to purchasing hot drinks even from establishments that do not belong to the traditional coffee shop segment.
This overtaking reflects the growing ability of non-traditional operators to combine their core product categories with a competitive coffee offering, supported by affordable prices, fast service, and assortments designed to accompany different moments of the day, from breakfast to lunch breaks and afternoon snacks.
Affordability is becoming increasingly important in customer decisions, and Greggs' positioning, built on the integration of baked goods, quick meals, and drinks, has allowed the brand to expand its consumer base and increase store traffic.
The UK branded coffee shop market as a whole continued to grow, with the number of outlets increasing by 3,5% to 12.313 in 2025, while sales increased by 5,5% to a total value of £6,8 billion.
The faster growth in turnover compared to the number of locations highlights the resilience of demand, despite the pressure on household purchasing power, and confirms the sector's ability to generate value through expanding its offerings, innovating its menus, and paying greater attention to out-of-home dining opportunities.
Greggs's progress has been driven primarily by the continued expansion of its network, which added 34 new openings in the first half of 2026, bringing the total number of stores to 2.773 at the end of June and further strengthening its already widespread presence across the UK.
Alongside the network development, the group has worked to expand its coffee offering, introducing new products such as iced matcha lattes and revamping its food assortment, aiming to capture emerging consumer trends and attract younger customers.
In the first half of 2026, Greggs achieved total sales of £1,1 billion, up 7,2% compared to the same period of the previous year, while like-for-like revenue from directly operated stores increased by 2,1%, also showing a positive trend in existing locations.
The brand expects to close 2026 with a net opening of around 100-110 new stores and believes that in the long term the UK market can support a network of at least 3.500 stores, a prospect that could further widen the gap with its main competitors.
Meanwhile, Costa Coffee continues to invest in renovating its locations, developing new formats, and updating its range, seeking to strengthen both the consumer experience and its ability to compete on price and the breadth of its offering.
In July, the chain brought scones back to its menu after a five-year absence, also offering an Afternoon Bundle that pairs a full-sized hot or cold drink with a scone served with jam and clotted cream, in an attempt to revive afternoon dining opportunities.
Greggs's top spot therefore represents more than just a shift in the top spot, because it captures the structural transformation of a sector in which coffee is no longer just the core product of specialist chains, but a strategic component of the offerings of bakeries, food-to-go chains, supermarkets, and fast food restaurants.
