Out-of-home (OOH) coffee culture is being reshaped by younger consumers who expect quality, sustainability and innovation as standard. Drawing on Nestlé Professional’s Behind the Beans research – which surveyed 1,000 UK students, 192 campus caterers and 1,000 hotel guests – Courtney Jones, marketing activation manager at Nestlé Professional, explains how these shifting expectations are transforming both campus and hotel beverage strategies.

What do consumers today want from their OOH beverages?

Today's consumers prioritise quality above all else when it comes to their out-of-home beverage experience. Nestlé’s latest research with 1,000 UK students shows that 56% rank quality of coffee and beverages in their top three decision factors when choosing a campus venue, even ahead of price at 53%. However, they remain price-sensitive, with 72% having changed their coffee-buying habits due to rising prices.

Beyond quality, consumers demand variety and innovation – 96% of students say a changing menu is important to them, rising to 99% in northern regions. They want seasonal options like honey latte and mint mocha, iced coffee and blended beverages such as Frappuccinos. Sustainability has become crucial, with 90% of students considering it important when deciding where to buy coffee, particularly valuing environmental impact reduction, sustainable packaging and ethical sourcing. Brand recognition also matters significantly, with 97% of students considering branded coffee drinks important when choosing meal deals.

What we're seeing is a fundamental shift in consumer expectations. When it comes to coffee, students and young consumers want a quality experience that aligns with their values. They're willing to pay more for better quality, but they also expect innovation, sustainable practices and familiar brands they can trust. It's about creating that perfect balance between premium experience and accessible pricing.

Quality is also important to hotel guests. 89% of four to five stars hotel guests said the quality of coffee on offer is an important factor to their overall experience.

What are the most popular hot beverages in an OOH setting?

While coffee dominates campus consumption, with 94% of students regularly purchasing it, the additions they want to see on menus highlight how hot beverage preferences are evolving. While students may have their favourite coffee orders, 54% find a changing menu important as they enjoy trying new drinks. Out of these menu changes, 39% of students like to see seasonal offerings, 34% want trending flavours and ingredients, 34% prefer speciality hot chocolate and 28% want functional coffees.

Guests at four- and five-star hotels expect a variety of customisation options, with 43% ranking flavoured syrups as the most important, closely followed by non-dairy and decaffeinated alternatives. These figures rise even more when we look at generational responses, with 59% of Gen Z and 47% of Millennials favouring syrups.

How have the beverage preferences of younger consumers (Gen Z) changed the market in recent years?

Gen Z students are driving transformative changes in the beverage market that challenge traditional assumptions. They’re demanding year-round cold beverages, with iced coffee ranking second in menu preferences at 37%, debunking the myth that cold drinks are seasonal. Students now expect iced options all year, alongside blended and indulgent drinks, which 36% favour.

Their sustainability-first mindset is unprecedented: plant-based alternatives are important to 79% of students and essential to 31% of London-based students. Perhaps most significantly, 96% demand menu variety, with northern students particularly vocal at 99%, showing Gen Z’s expectation for constant innovation and newness in their beverage choices.

How can OOH beverage providers offer value to consumers when at-home hot beverage machines are becoming more common?

Our research reveals that OOH providers can compete effectively with at-home solutions through strategic value creation. Loyalty programmes emerge as the top value driver, with 30% of students citing them as the primary offer that would encourage more coffee purchases, ahead of meal deals at 28%.

Strategic meal deal positioning is crucial, as 97% of students consider branded coffee drinks important in meal deals, with one in three saying it's essential – this creates value perception beyond just the beverage itself. Providers should also consider affordable premium options, such as Nescafé Freshly Ground Self Serve Coffee Machines, to compete with high street brands while maintaining quality expectations.

Crucially, 21% of students are drawn to unique options they can't find elsewhere, suggesting campus venues can offer experiences that home machines simply cannot replicate through social interaction, convenience, and exclusive offerings.

How can you help your customers meet demand for customisable hot beverages, such as alternative milks or different flavours?

Meeting customisation demands requires a multifaceted approach that starts with plant-based priorities. With 79% of students considering plant-based alternatives important and 31% considering them essential, ensuring comprehensive non-dairy options is no longer optional. A seasonal rotation strategy works best for flavours - tracking trending ingredients through social media and rotating seasonal offerings allows providers to offer both trending flavours like pistachio, matcha, and turmeric alongside returning favourites. There's also growing interest in functional beverages, with students wanting options like Glow Latte, Focus Latte, and Protein Latte, showing demand for beverages that serve specific wellness purposes. Additionally, developing campus-exclusive offerings can satisfy the 21% seeking options unavailable elsewhere, creating a unique value proposition that drives loyalty and differentiation.

How can automated beverage solutions ensure consistently high-quality beverages?

The key to quality consistency lies in addressing the significant gap our research identified between what students expect and what they're currently receiving. Only 41% of campus caterers rank coffee bean quality as most important, while 40% of students say campus coffee doesn't taste great. Automated solutions can bridge this gap through consistent preparation methods and standardised recipes. Taking advantage of training programmes offered by branded coffee suppliers helps maintain consistency across wide drinks ranges, while brand partnerships provide additional benefits since 78% of campus caterers recognise that branded coffee products are important to students.

Automated systems from established brands can deliver the consistency and quality students expect while ensuring familiar taste profiles that replicate the high street experience students crave.