26 September 2007
THE Coffee Republic brand is to make a return to Scotland almost a decade after its initial foray north of the Border in a franchise deal with north-east convenience store and deli chain McLeish Brothers.
The move will also see Dundee-based McLeish Brothers, which has five stores across the country, push further into central Scotland as part of a massive expansion drive.
The first of a chain of 25 New York deli-style stores is to open on Edinburgh's South Bridge in the new year, while sites have already been pinpointed in Glasgow and Dundee.
The move will see Coffee Republic square up to industry leaders Costa and Starbucks in Scotland, before moving the McLeish/Coffee Republic partnership south of the Border.
Coffee Republic opened two stores in Scotland in the late 1990s as part of a rapid expansion, but they closed soon afterwards as consumers turned their backs on "designer" coffee.
The McLeish stores, which sell food such as stovies and malt whiskies as well as Indian and Chinese delicacies, will include a Coffee Republic branded franchise, but the store will remain under the McLeish Brothers' name.
A further five stand-alone Coffee Republic stores are to be opened in Scotland before the end of the financial year, with three due to launch before Christmas - one in Silverburn, Glasgow.
McLeish Brothers, which is 60 years old and has stores in Dundee, Aberdeen, Broughty Ferry, Glenrothes and Inverurie, announced earlier this year it had plans to significantly expand the business to 25 stores by the end of 2008. The brand was bought over last year by entrepreneur Stan Morrice. A total of £5 million of private equity money has since been invested in the chain.
Steven Bartlett, chief executive of Coffee Republic, which has recently seen rapid growth in eastern Europe and the Far East as well as the domestic market, said: "We have been impressed by the enthusiasm and drive demonstrated by McLeish Brothers and are very excited to be working with them in furthe
ring the their company's expansion in Scotland, and subsequently England."
He added: "Coffee Republic initially ventured into Scotland ten years ago, but quickly retreated. However, the market has changed completely now and the coffee shop is a standard thing. We expect it to go very well."
Morrice, managing director of McLeish Brothers, added: "We looked at a number of the leading coffee shop brands, but Coffee Republic was by far the best brand in terms of quality of coffee and range of product."
