COFFEE shops have been defying the recession by snapping up yet more space on Britain’s high streets as figures suggest the daily cup of coffee is one treat consumers cannot do without.

While retailers have been falling by the wayside amid the recession, recent research showed growth in the overall number of coffee outlets in major UK cities more than doubling to 7% in the past year.

The six largest coffee chains in the sector increased their space by 47% in the year to September 30, the study from The Local Data Company showed.

The figures are surprising given the expectation for recession-hit consumers to ditch discretionary spend. The boom in coffee shop culture in the years running up to the economic crisis saw UK town centres almost taken over by coffee chains, often with more than one of the same brand in the same high street.

But the clampdown in consumer spending had been expected to put paid to the sector’s expansion spree. With the average cup costing around £2 in the UK and available spend under real pressure as unemployment soared higher, it was thought to be a strong candidate for cut backs.

Sam Hart, an analyst at Charles Stanley stockbrokers, said consumers have instead been far more worried about splashing out on big items, such as televisions and sofas, than low value everyday treats.

“It’s no real surprise that coffee shops have held up well in the recession – we’re talking about a pretty low average spend,” he said. “There’s also a slight cultural change going on – a shift towards the coffee shop culture where consumers expect higher quality standards of coffee.”

There have been casualties, however, with Coffee Republic and BB’s Coffee & Muffins collapsing in the past four months, although both were later bought out of administration.

German-owned Tchibo also pulled out of the UK coffee shop market in September, citing a “severe drop in British consumer confidence”.

Perhaps testament to the sector’s prospects is the decision by Arab Investments to rescue the 80-strong Coffee Republic chain from administration in July. Traditionally a property investment firm, it seized the opportunity to buy into the sector at a heavy discount and is now planning “substantial investment” in the brand to help it achieve aims for another 120 stores within two years, potentially by snapping up another coffee firm.

Costa has put in a recession-busting performance, delivering a 70% surge in operating profits to £12.6m in the six months to August 27 on sales up 21%.

Having opened its 1000th store last year, the Costa brand has continued to expand, adding another 100 UK outlets in the first half of the year alone. It now has around 1,400 stores worldwide.

Aside from canny promotions, experts also believe Costa’s success has been driven by an innovative expansion strategy that has seen the group steer away from traditional high street locations.

It has private and corporate franchises in addition to outlets in airports, motorway stations, hotels and major retailers.

Costa’s rapid expansion is likely to be responsible for much of the 47% increase in store space for the top six brands over the past year – but the growth is also being driven by small firms.

Warrington-based BeOffee has stores in Cheshire and the Wirral and is continuing to grow despite the increasing number of chain outlets.

It plans to open two stores in the New Year, taking advantage of the favourable offers available from landlords.

BeOffee co-founder Jennifer Lawrence said: “There is still a thirst from customers for good quality coffee.

“While the big cities are full to the brim with outlets, consumers in towns like Birkenhead and Widnes really like a quality product made by friendly baristas.

“It is a good time for companies looking to expand to get good deals on new premises and there are still opportunities out there.”

And while there are still more coffee shops on Castle Street, in the heart of Liverpool’s business district, than in the whole of St Helens, in the last decade the coffee culture has become ingrained in the routines of millions of people.

She added: “Coffee shops are not just places for workers to get a quick caffeine hit or to maintain contacts, but for teenagers, families and pensioners to meet – in many places they have replaced the pub or the post office as the hub of the community.

“The continued growth of small and large firms alike shows that the coffee culture which has developed in the UK in the last decade is not a trend but is definitely here to stay.”

It is a view backed by research firm Allegra Strategies, which predicts the wider market is also in line for further growth as Britain’s appetite fails to subside.

It expects the UK coffee shop market will hit £2bn in consumer spending by 2012.

With cheap property also up for grabs as other retailers go bust, the rampant expansion seen in recent years may continue for some time yet.