The Internet café is a relatively newcomer to the British high street- is the rise in the number of visits to Internet cafes primarily fuelled by the growth in the Internet usage?

In the future will the Internet stores take a greater market share in urban centres?

Will the competitive pricing policy of large café chains present a major challenge to the independent operators?

The Internet café is a relative newcomer to the British high street. Internet cafés have benefited from the surge of interest in the Internet as a mass medium in the mid-1990s when consumers used the café as an introduction to the Web prior to buying their own PCs. The rapid rise in home PC ownership has helped the sector rise to around 400 outlets and a estimated value of £73 million. As PC ownership has become commonplace, the image of the Internet café has undergone a transformation as it has lost its atmosphere of exclusivity. Also, recent media coverage of the Internet café format has been critical of the dated decor and food offer of some outlets.

This report investigates the sector at a time of redevelopment and change. Increasing Internet usage has brought the medium into the mainstream of British life. There is increasing demand but a wider number of points of access and the future of the Internet café is no longer assured. In addition, competition has grown as new operators and branded outlets have entered the sector with a view to capturing the mass market through low-cost services.

This report analyses the key trends which are shaping the repositioning of the sector. As Mintel's first report on the sector, particular attention is paid to market segmentation and key drivers in future growth. Mintel's consumer research specially commissioned for the report analyses the purposes of visits to Internet cafés and consumer attitudes towards café service. It details strengths of consumer demand and identifies areas for strategic market development.

Other reports of relevance to this market include:

- Inbound Tourism, Leisure Intelligence - UK Report, June 2001

- Coffee Shops/Bars, Leisure Intelligence - UK Report, February 2001

- Special Report, Holidays, Leisure Intelligence - UK Report, January 2001

- Video and Computer Games, Leisure Intelligence - UK Report, August 2001

- Leisure on the Internet, Leisure Intelligence - UK Report, May 2000

- Special Report, Holidays, Leisure Intelligence - UK Report, January 2002

- Coffee Shops/Bars, Leisure Intelligence - US Report, January 2002