Dessert cafes and ice-cream parlours are hoping to play a role in a revival of UK high streets and the night-time economy, as people seek an alternative to going to the pub or an expensive meal out.
Their number has soared by almost 700 in the UK in the past decade, according to analysts at Green Street, formerly the Local Data Company, with outlets in places from Aberdeen to Plymouth.
The market is thought to be worth more than £500m, including several national chains as well as much-loved independents from The Pudding Stop in St Albans to Cloud 9 in Brighton.
“It’s a nice chit-chat place,” says Ria, 24, emerging from a lunchtime stop at a London outpost of one of the UK’s biggest chains, Creams, with two friends. “Especially if you are craving something sweet. It’s a Friday treat at a decent price.”
“I’ve noticed it’s becoming a bigger thing,” says Gemma Saunders, 46, who’s just bought gelato with her daughter Elizabeth, 13. “It’s a nice alternative to going out drinking and more and more people aren’t drinking. It’s quite a family place.”
“I can meet my friends in places like this,” adds Elizabeth. “It’s less expensive than going out for pizza.”
The last couple of years have been challenging, as the rising cost of dairy products plus higher energy and wage bills have combined with falling visitor numbers to high streets and shopping malls.
However, Creams – which has 93 outlets, almost all of which are run by franchisees – is back on the expansion trail with plans for about 10 new outlets this year, and a similar number next year.
The menu features the Hot ‘n’ Cold Chocolate Fudge Volcano, the Lemon Meringue Cheesecakundae, the Birthday Cake Loaded Shake and hot waffles topped with Oreo, Bueno and Speculoos.
The company – which opened its first outlet in Southall in 2011, has its own Gelato factory in Dagenham and makes its waffle mix in Dunstable – is exploring new types of venues in cinemas and travel hubs, such as train stations. It is also testing two sites in Tesco supermarkets and is in talks to go international, with the Middle East or the US a likely first step.
Rival company Kaspa’s, which has about 100 outlets, has also been on the expansion trail, opening its first central London venue last year, while younger challenger Heavenly Desserts, which has 60 outlets in the UK after recent openings in London and Middlesbrough, is aiming for 100 by next year, with plans for outlets in Bedford, Basildon and Manchester.
At the more upmarket end of the scene, Bristol company Swoon Gelato has expanded to Oxford and Bath, and now has a spot in Selfridges department store in London, putting dessert firmly on the fashion menu.
Arguably, the concept of a dessert specialist goes back to the early 20th century with the likes of Bettys in Harrogate or Lyons Tea Rooms, or the ice-cream parlours that began opening across the UK from the late 19th century.
However, the likes of Creams, Kaspa’s and Heavenly Desserts have given desserts-only venues a youthful twist – with a mix of cakes, waffles, crepes and gelato – aimed at those who want an alternative to the pub or more staid atmosphere of coffee shops and tearooms, which often close at 4pm.
Since Creams opened its first outlet in 2011, the dessert shop has become a meeting point for a wide array of British society, from kids and teens, who take over such venues as a place to hang out after school or in the early evening, to family groups and other non-drinkers searching for an alcohol-free place to socialise into the evening, to gen Z mates who increasingly favour booze-free venues and have an eye for the pop of colour an elaborate dessert can add to their social media feeds.
At Creams, the decor is reminiscent of a night club, with black walls and spotlights helping to highlight the bubblegum-bright colours of its gelato.
Sign up toBusiness Today
Get set for the working day – we'll point you to all the business news and analysis you need every morning
after newsletter promotion
“It is a very democratic meeting place,” says Kien Tan, senior retail adviser at PricewaterhouseCoopers, who puts dessert cafes in the same category as bubble tea venues. “It is an affordable sweet treat, especially for people who don’t drink alcohol. During the day there can be a cosy club crowd of older people who want an unthreatening place to have a treat.”
A spokesperson for Heavenly Desserts said it primarily attracts 18- to 35-year-olds. “While we welcome guests of all ages, it’s this younger demographic that most strongly connects with the brand and continues to drive our growth. As a brand, we benefit from the growing desire among younger people for mindful, alcohol-free social experiences,” a spokesperson said.
Everett Fieldgate, the chief executive of Creams, says you might find a different demographic attacking the waffles and ice-creams depending on the time of day you enter one of the company’s outlets, which open as late as 3am in some locations.
The Australian is giving the brand a new spin with a lighter look intended to appeal more to twentysomethings, families and daytime punters. He has also introduced a healthier range of items – including fruit skewers, albeit drizzled in chocolate – as families try to dial down their sugar intake.
“Consumers are definitely holding back, and they’re being very careful with where and how they’re spending money,” says Fieldgate.
He says some consumers are looking to cut their spending on their favourite treat while others are downsizing from a meal out to just dessert and Creams is “benefiting from both”. Fieldgate says Creams is also benefiting from the trend for some consumers to take time out – permanently or temporarily – from drinking alcohol, saying to friends, as he puts it: “Let’s go somewhere where I’m not going to be tempted.”
In the cost of living crisis, such dessert places may not be cheap, with Creams’ Hot ‘N’ Cold Chocolate Fudge Volcano Sundae costing £10.95, but they are so massive they can be shared and the whole experience is likely to cost less than a full meal out.
Fieldgate says 2025 has started well, with sales helped by the warm sunny weather, although he says the group is “keeping a close eye on costs” and being careful to ensure new sites are viable amid higher business rates and wages.
He says the hospitality industry needs more help from government to revive high streets and help it fight back against online shopping.
“People are holding on by the skin of their teeth because of poor consumer confidence and the constantly increasing cost of doing business,” he says.