Neros: This seems to be marketed at proper coffee drinkers. Their USP is their 'Italian Quality Coffee' and this is compounded by the largely limited menu which contains mostly espresso based drinks. They do have some milkshakes in the fridge which they will blend. The customer also seems to be more mature. It's not a 'cool place' to take your Instagram shots as such. Marketing is non-existent.
Starbucks: they aim for the younger crowd. They make drinks which will appease everyone. They have excellent marketing skills and know how to build hype around their drinks (Rainbow Frappe). It is very much a place to hang out and 'be cool' and take photos. You won't find many individuals having espressos or long blacks etc in there. I think they've nailed the dessert type hot drink market and frappe market.
Costa: somewhere between the two. They make good coffee. They offer frappes, smoothies, iced drinks. They have decent marketing campaigns. They vary the menu.
At what point does the coffee shop market collapse? Surely people can only drink so much (relatively expensive) coffee?
I don't think it will for a while. This country for a long time has considered what coffee is to = instant or supermarket filter coffee. The public has now been exposed to what great coffee tastes like and they enjoy (through various independent specialist coffee shops which have cropped up everywhere). I don't believe it is a fad. Yeah, there are probably those drinking coffee to be cool and will move on but coffee has surged in popularity and has remained consistent and growing over the last 10 years. It's not particularly expensive, especially in comparison to a pint, which is a lot of the market share coffee has taken. It's not as socially acceptable to go for a few pints at lunchtime with colleagues as it would have been many years ago, this now now been replaced catching up for a coffee, holding meetings at coffee shops etc.