If matcha isn't on your menu yet, you're likely turning away customers who've already decided to order it somewhere else. The clearest evidence of this is playing out on the high street right now: Costa's owner, Coca-Cola, is reportedly looking to sell the chain for roughly half what it paid for it in 2019, while Blank Street, built in large part around its colourful matcha range, has expanded to around 35 London stores, drawing customers who travel specifically to try it, according to BBC News reporting. Retail analysts quoted in that coverage put it plainly: chains that don't adapt to changing customer habits are the ones that end up in trouble.
1. Customers want a coffee alternative
Not everyone wants five cups of coffee a day. A standard matcha serving (2g) has roughly 60–70mg of caffeine versus ~95mg in an 8oz coffee, and its L-theanine content smooths the energy curve — steady focus rather than a spike-and-crash. AJ Bell's head of financial analysis, Danni Hewson, told the BBC that younger customers are increasingly drawn to matcha for exactly this reason, and that some in the youngest generation don't drink caffeinated beverages at all. For customers moderating their intake without cutting caffeine out, matcha fills a gap coffee can't.
2. It's perceived as the healthier choice
Matcha carries a strong health halo, antioxidants, "cleaner" energy, a wellness-driven image — which matters a lot to the health-conscious customers driving café spend. Worth noting for your own credibility: BBC News reporting on the trend is careful to flag that while matcha is widely considered to have a gentler caffeine effect than coffee, the proven health benefits are still debated. That's a useful distinction to keep in mind the commercial opportunity comes from the perception itself, not from health claims you'd need to stand behind.
3. It's fast and easy to prepare
No machine, no grinder calibration, no trained barista required, just whisk and serve. That's quicker to train staff on, more forgiving during a rush, and a real operational win for stretched teams.
4. The margins are good
A 1kg bag of matcha costs roughly double a 1kg bag of coffee, but that's the wrong comparison. A matcha latte uses about 2g per cup (500 cups per kg), while an espresso uses about 9g (around 111 cups per kg). Once you account for that, matcha's cost per cup is comparable to, or even lower than, coffee's, despite the higher price per kilo. Use the right grade for the job (latte-grade for everyday lattes, not pricier ceremonial) and price it to reflect its premium positioning, and it's one of the higher-margin items on the menu, with no new equipment needed.
The bottom line
Matcha solves a real customer need, is simple to execute, and is profitable. Costa's struggles and Blank Street's growth are a live example of what happens when one side of that equation gets it and the other doesn't. If matcha isn't on your menu, that's customers and margin you're leaving on the table.
Source: "How coffee chains like Costa lost the matcha generation," BBC News, 30 August 2025.