Coffee shop chains have become major features of high streets, shopping centres and motorway service stations in the UK, with brands such as Costa Coffee and Starbucks continually raising profits even while other retail businesses failed during the recession. Yet the boom in sales has extended beyond the traditional powerhouses of the sector, with growing and independent brands also given the opportunity to cash in on the British consumer’s caffeine requirements.
Harris + Hoole, the coffee shop which supermarket giant Tesco holds a 49 per cent stake in, is just one of the brands benefiting from the annual consumer spend in coffee houses. Due to steady profits and increasing demand, the chain has announced its intention to double in size over the next few years and create employment for around 1,000 people nationwide.
At present, Harris + Hoole operates 30 outlets – impressive for a chain which only launched with a single Buckinghamshire store 18 months ago. However, a spokeswoman confirmed that the chain hopes to significantly increase its presence, although refused to specify exactly how many shops will be opening as part of the expansion programme.
She said; “Harris + Hoole takes an opportunistic approach to expansion – when we see a site where we feel we can provide a really high quality offer we will go for it.”
Tesco’s involvement in the business has truly paved the way for Harris + Hoole, as it allows the coffee chain to open concessionary branches within the supermarket group’s stores; indeed, the spokeswoman confirmed that a number of the new locations would take this route. However, she pointed out that the chain is also eager to increase its high street presence and as such will commit to sourcing properties in town and city centres.
Most of the new outlets will be located in the south east of England, where the brand has so far enjoyed significant success. However, investment will also be channelled into the creation of “kitchen hubs”, as food will no longer be made in many of the coffee shops.
Outside of commercial developments, Harris + Hoole will also attempt to target higher volumes of consumers and in turn raise profits by extending opening hours to meet a niche in the nightlife market. It has already obtained liquor licenses for stores in North Finchley, Sunbury and Walton on Thames, although was denied a license for its Richmond outlet after protests from local residents.
With coffee shops attempting to broaden their appeal and attract ever-increasing numbers of consumers, moving into the evening market may not be as risky for Harris + Hoole as some economists would have us believe. However, whether this encroachment will be welcomed by the pub industry is another matter entirely.
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