By Steve Holtz
Friday evenings may be convenience retail’s hottest opportunity to grow coffee sales. Research from Costa Coffee’s more than 250 coffee vending machines in c-stores, universities and travel channels shows coffee transactions between 5:00 p.m. and 7:00 p.m. double on Fridays compared to the rest of the week.
“Coffee is enjoying a happy hour,” as consumers look for a caffeine boost before they begin their weekend activities, said Joe Gaines, senior director of sales, Costa Coffee U.S. “Coffee is no longer just a morning ritual. It’s becoming a weekend kick-starter, as consumers are leaning into cold and specialty drinks long after the morning commute.”
Gaines said retailers who don’t have coffee drinks available during the “happy hour” period are missing an opportunity. “After-work coffee runs are surging,” he said, “and operators who miss the signal could miss foot traffic.”
While coffee sales peak on Friday nights, the trend also extends across all late hours, according to Costa’s data. Gaines said 25% of all Costa Coffee register transactions in convenience stores now happen between 5 p.m. and 5 a.m., as consumers seek out alternatives to coffee shops that are typically closed during these hours.
“From what I’ve seen, many consumers are enjoying coffee multiple times throughout the day,” Gaines said. “Many coffee shops or cafes are closed in the 5:00 p.m. to 5:00 a.m. time frame. Costa’s 24/7 automated equipment allows operators to capture that incremental business without overnight labor.”
High Demand for Hot Drinks
Additionally, Costa Coffee data collected from the company’s vending machines from January 1 to April 15, 2025, show that “comfort drinks” are popular with consumers.
“In a world of cold brew and espresso shots, c-store customers appear to be embracing warm, cozy rituals,” Gaines said. “Hot chocolate and cappuccinos signal a shift toward beverages that soothe, not just energize.”
Again, he said, this represents an opportunity for retailers.
“Hot chocolate isn’t just for kids. It’s a strategic SKU for c-stores leaning into comfort and accessible luxury,” Gaines said. “According to our 2025 Costa Coffee data, travelers are reaching for hot chocolate and cappuccinos at a higher rate in c-stores than other channels.”
Specifically, cappuccinos represent 17% of total hot beverage sales in c-stores, and hot chocolate captures 16.5%, versus 9.2% and 11% in Costa’s other channels, respectively, the company’s data show.
“By understanding that consumers seek non-alcohol social rituals, convenience retailers have a powerful opportunity to reframe their stores as evening destinations, not just morning pit stops,” Gaines said.
In 2024, hot dispensed accounted for 2.5% of in-store sales. Read “Big Business (Still) at the Beverage Bar” for more.
Promotional Ideas for Retailers
Gaines offered these suggestions to capitalize on these trends:
- Offer late-day promotions (e.g., BOGO coffee during evening rush hour on Fridays) to establish c-stores as a go-to spot for after-work coffee happy hour.
- Incentivize non-morning visits with double reward points during evening hours or weekend nights.
- Align after-work coffee with weekend events (e.g., concert pregames, sports nights)—“Enjoy a pick-me-up before your plans.”
- Push real-time offers via app notifications, digital signage or gas-pump screens that adapt by time of day (for example: “Warm up your evening with 50¢ off a hot chocolate now!”).
Further, he said, convenience retailers can capitalize on the evening coffee surge by making it an afternoon snacking occasion, with specially priced bundles of coffee and food items—such as lattes with protein bars.
U.K.-based Costa Coffee, owned by the Coca-Cola Co., expanded into the United States in 2022. Its U.S. strategy focuses on a three-pronged approach: retail stores, automated machines and business-to-business (B2B) partnerships.