Scott Waddington, the chief executive of SA Brain, has told M&C Report that he is “watching with interest” how Starbucks and Pret fare with their evening concepts before deciding if Coffee#1 will follow suit.
He said the coffee shop brand, which opened its 50th store in Fareham, Hampshire, yesterday, is on track to hit 100 sites by 2020 and could achieve that milestone sooner. He said beyond that there was no reason to think it couldn’t be rolled out across the country and said he wouldn’t rule out a franchise offer when the concept has grown sufficiently.
He said: “We were attracted to the business because it appeared very scaleable and that is how it has worked out. When we bought Coffe#1 in 2011 there were 15 stores and we are now at 50.
“As you add ten stores to an ever enlarging chain it becomes slightly easier, so I would like to think we could accelerate our growth slightly but in broad terms 2020 seems a sensible target to reach 100.”
Waddington said he believed that milestone could be met within the company’s core geography – which takes in Wales and the South West – as far south as Torquay and north to Perhsore.
He added: “We have already learnt that the concept works pretty much anywhere we put it so there’s absolutely no reason to think it couldn’t then expand beyond that heartland.
“We have very clear demographic models so that could be extrapolated out across the country. It’s got huge potential.”
Asked if he would consider a franchising deal, Waddington said: “In order to franchise you need to first have critical mass, and I don’t think we are at that level yet. I certainly wouldn’t rule it out and when looking at pushing into new areas that could be an option but it’s not one that’s right for us at the moment.”
On the decision by Starbucks and Pret to offer a separate evening menu, complete with alcohol, Waddington said: “It is a natural extension of what they do from a strategic point of view. They have got the premises. I think it would only work in certain locations but if you have got a site where you can stretch the day part then I can understand why you would do it. But I think you have to be careful.
“When we bought Coffee#1 we were asked the question and it wasn’t something we were planning but we said that we would watch the market. There is a logic to extending the day part, so our position remains that we will watch with interest what happens. If it’s appropriate we may well consider it. We would only do a trial in certain locations and there’s no way we would do it if we thought it would compromise the core coffee offer.”
