The Coffee Club’s new strategy for expansion is focused on three cafe formats as the brand looks to broaden its customer base and reaffirm its position in the crowded cafe market.
CEO Scott Meneilly told Franchise Executives the brand needs to be distinct and top of mind for cafe consumers.
“It’s all about sustained long-term growth and repositioning us in the minds of everyday consumers where we are not as broad as we would like to be. We want to be involved in a lot more of the everyday or every week consumer mindset,” Meneilly said.
“We want to obviously have a really distinct and ownable place in the market. So when you’re thinking about where is it that I’m going to go or where is it that I’m going to meet up with my friends or family that instantly you’re thinking about The Coffee Club.”
The Coffee Club needs to retain loyal customers while attracting new customers excited by the cafe space, he added.
New store formats for The Coffee Club
The route to a unique market position starts with the three new store formats: classic, community and collection.
Meneilly said the classic stores in high volume locations such as shopping centres will retain the familiarity of the brand, but will have an element of individuality.
“They’re going to be independent within a framework. And what I mean by that is they’re all going to have a very similar look, but they’re going to have different colour schemes, different furniture and fittings.
“In terms of the products, there will be favourite products that will be standard on every menu throughout all of the classics. However, you will find that the products will then be tailored also to that area. Anything that’s sitting in the fresh food cabinet, you know, will be really specific to that area,” he said.
The community stores are street site locations with store designs sympathetic to the neighbourhood. One example is the recent store at Coolangatta, opposite the beach.
“It’s very much a beachside, bayside area. So we’ve incorporated that through the images, the colours, the textiles, the finishes in that store,” he said.
The third format, the collection stores, are brand building opportunities set to surprise the customer, Meneilly said.
“It could be an iconic CBD building or an airport where we actually create a completely independent bespoke looking store that excites you about the possibility of The Coffee Club. And if you’re very familiar with the brand, you would say, there is no way that is a Coffee Club. Are you serious? I’m going to check that out.
Growth goals
“So this is just about creating that intrigue so that you can unlock a little bit more about who The Coffee Club is. And because we’ve been around for 35 years and we have had this cookie cutter type approach, we want to really excite people with the possibilities of what we could be, but also who we are so that people give us that opportunity again,” Meneilly said.
Coffee continues as a critical component of the business, and The Coffee Club undertook a recent survey to understand consumers’ preferences before relaunching its coffee and retraining 750 baristas.
Meneilly plans to reposition the brand, “in the most part” by the end of 2025, and see growth from sales volume and new stores.
“We’re anticipating that over time we’ll get anywhere from 50 to 100 more stores on the ground. We think we should be sitting around about that 300 store mark,” Meneilly said.
“What we’re not trying to do is scale the mountain as rapidly as we can. But we are trying to make sure that each step we take is well considered, it’s well thought through, that it’s having positive impacts for the franchise partners, to the customers, and driving our business forward,” he said.
You can hear more about the reinvigoration of The Coffee Club in a full podcast interview with Scott Meneilly.
