Paddy & Scott’s will continue to open coffee shops as a gateway to increasing positive social impact, with a laser focus on its sustainability and community led practices.
The craft coffee roaster and coffee shop operator opened its first shop in the Midlands last week, marking its first steps outside the East-Anglia region.
CEO Jon Reed tells MCA that the brand’s growth strategy remains “fairly opportunistic”, as the business continues to be driven by its social impact targets.
“We will continue to open stores when we see opportunities that connect with us”, he says.
Fundamentally a coffee producer, the brand’s e-commerce business, is “around 66% up year-on-year,” says Reed, with its coffee shops an “offshoot” of this.
“The future of the coffee industry is going to continue to be largely driven by really strong coffee shops that create strong communities in the areas in which they trade and we’re really passionate about that.
“If a location appears that fits with our manifesto and gives us the ability to empower coffee farmers and protect the planet, then we’re working for those opportunities.”
Working closely with coffee farming communities in Kenya and Brazil, the brand aims to fuel the ambitions of coffee growers all over the world.
Reed says the brand’s key long term target is to have funded 1million school meals in coffee growing regions by 2025, with every bag of its Lunch Box coffee, providing a meal for a child.
“The vein that runs through our businesses, is working with coffee farming communities and helping inspire entrepreneurs in those communities,” he adds.
Reed sees an exciting future for craft coffee, adding that “people’s expectations for a great cup of coffee have never been higher.”
“I’d love to think that people come and see us, both for a great cup of coffee, but also for that sense of community.”
With the work-from-home revolution remaining resilient, the sector is moving towards a more experience-focused model, says Reed.
“Rather than just buying a drink, consumers are also buying time in a coffee shop and can enjoy that experience.”
He also notes a rise in young people entering the coffee shop sphere, as they move away from alcohol-based occasions.
“We’re seeing a real shift away from the traditional bars on a Friday and Saturday evening, towards a slightly more coffee orientated meeting space.
“They want to see their friends. They want to have a chat. But maybe alcohol is no longer the focal point for that conversation,” he adds.
Social impact continues to be the mainstay in brand strategy, something that Paddy & Scott’s is “not willing to compromise on”.
This commitment has stood the business in good stead when it comes to staff retention, says Reed.
“We’re trying to build a group of people that are really passionate and proud about where they come to work.
“We are fastidious in how we trade, who we trade with, and cutting corners around packaging and sustainability is just not how it works,” the CEO adds.
The greatest challenge going forward is climate, says Reed, with a rise in global temperatures creating concern for producers across the coffee belt.
The company is currently working with universities and farmers in Brazil to try to “address the balance” through alterative programmes that can support the livelihood of coffee farmers over the next 50 years.
“When you’re dealing with a commodity such as coffee that’s been traded a certain way for so many hundreds of years, there is an opportunity to look at it through a slightly different lens”.
