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Showing posts with label International. Show all posts
Showing posts with label International. Show all posts
Coffee Republic looking to end year in profit
1st April 2008
Source: Food and Drink Exec
Publication date: 17/03/2008
Since opening the doors to its first coffee bar in London in 1995, Coffee Republic has seen its fair share of ups and downs. Exec finds out more
Written by Lucy Mowatt and produced by Hannah Edwards
Since 1995 Coffee Republic has gone through a significant number of changes, with the most notable coming in 2006; the company’s shareholders ousted founder Bobby Hashemi from his role as executive chairman and set about changing the company’s run of luck under new management.
Steven Bartlett, the current CEO explains that in nearly 13 years Coffee Republic has yet to end a year in profit. “We were the first coffee chain really and I think there is a disadvantage of being the first. We really over expanded and at the same time Vodafone shops were popping up everywhere and from what we can understand there was great demand for these premium sites, especially in London. The company really paid too much for these, overfitted them and didn’t really concentrate on the model.”
Since 2006 Coffee Republic has readressed these issues. “It’s all about the brand,” Bartlett explains, saying that it is looking to meet the competition that’s appeared in the market, including Starbucks and Caffé Nero.
“Speed of service is one of our key drivers too,” he continues, saying that the company is working hard to strike a balance between customers that just want to grab a coffee and go and those that want to relax or use the wi-fi facilities available at every Coffee Republic store.
The secret recipe
In line with these plans, the chain places a lot of emphasis on the training of its staff, not only to ensure that customers get an efficient service, but also so that they are able to make good coffee. “It’s amazing the number of people that think they’re doing a good coffee and they’re burning the milk,” he points out.
And with a selection of 20 different coffee beans from around the world making up its “secret blend”, it is easy to see why Coffee Republic places such an emphasis on training the staff in all of its own and franchised outlets.
In fact, the company has built very strong relationships with all its suppliers since 1995 and is still using the same company in Milan to brew its beans. “We’ve been through the wars, but people have stood by us, and I think that is testament to the brand,” Bartlett says. This is even true of its catering companies, with whom Coffee Republic has a strong history.
Coffee Republic now has 100 stores across the UK, a number which the CEO states is set to increase rapidly in the next twelve months. Having recently signed deals with Greene King, WH Smith and Cineworld, Coffee Republic concession outlets are set to open quickly.
“And there is a new company called McLeish which started up in Scotland and they have 49 stores to open in two years. There are going to be Coffee Republics in those too,” he adds, stating that it will add “critical mass” to the company and improve its finances.
Overwhelmed with enquiries
Since developing the brand, the company has been “overwhelmed” by franchise enquiries. “We have about 250-300 enquiries every week for franchising,” Bartlett explains. This has resulted in a lot of extra work for Coffee Republic, while they try to identify which enquiries are serious and which are less so. The company now holds a weekly franchise open day so that potential franchisees can go along and find out more.
In line with this, Coffee Republic has taken part in the One Life Exhibition at Olympia, as part of the Be Your Own Boss zone. A recent survey revealed that, when people were asked what they would do if they gave up their jobs, many said that they would like to open their own coffee bar.
“We tell people that you can go out and do it yourself, but unfortunately everybody is demanding branded coffee,” Bartlett points out. And Coffee Republic is in a position to help with those aspirations. Not only that, but Coffee Republic can offer training and branding for the outlet, making the venture much more secure.
International appeal
These potential franchisees are not just based in the UK either. Coffee Republic has appointed an international director in order to manage its coffee bars in eleven different countries, several of which are in the Middle East. “Our highest number of enquiries, internationally, was from Dubai and we have done a deal with the largest retail group there, the Paris Group,” says Bartlett.
He goes on to say that Coffee Republic has a competitive advantage in these markets too, ahead of companies such as Starbucks. “We tend to listen a little bit more to what our store operators are saying [about the menu],” he says. “For example, in India there is a vegetarian society, but there are some areas that are quite heavy meat eaters; you go to some countries and they won’t allow certain meats, so we make sure we’re flexible. Not everybody wants a croissant or a muffin.”
In addition to the flexibility of the menu, the service available can vary from market to market. “In the Middle East they very much like waitress service and we’ve got some areas where that has been half and half, as in the Dubai area; there’s a pick up point where you can help yourself or there is waitress service. It’s those kinds of things that companies like Starbucks don’t tolerate. It’s only a small point, but it’s very relevant.”
Owing to the popularity of the brand the company is now in the process of protecting the brand with trademarks too. Steven Bartlett points to a number of other Coffee Republic stores around the world with no link to the UK company - one store in Tasmania even has full branding. Bartlett makes it clear that this is on the agenda for 2008, as it is something that Coffee Republic given priority to in the past.
An internal branding exercise is also being launched this year, which will sit alongside its brands like Tea Republic. Caffe Republica will see the introduction of organic, Fairtrade coffee to its offering, along with recyclable bags. “We’re also looking at setting up a charity fund very similar to the Costa Foundation, but we’ll probably pick one country to focus on, probably Nicaragua,” Steven Bartlett says. The company will support the communities that supply its beans and build upon its infrastructure while offering customers ethically sourced coffee.
With such a strong focus on branding and turning the company around, it is sure to be an exciting year for Coffee Republic. “It’s been a very exciting journey and there has been a lot of work to do, but we’re starting to see the fruition of that work coming through now and we expect the international side of it to be even bigger than the UK,” he concludes. For the first time in 13 years Coffee Republic is looking to end the year in profit, which is testament to such hard work.
Source: Food and Drink Exec
Publication date: 17/03/2008
Since opening the doors to its first coffee bar in London in 1995, Coffee Republic has seen its fair share of ups and downs. Exec finds out more
Written by Lucy Mowatt and produced by Hannah Edwards
Since 1995 Coffee Republic has gone through a significant number of changes, with the most notable coming in 2006; the company’s shareholders ousted founder Bobby Hashemi from his role as executive chairman and set about changing the company’s run of luck under new management.
Steven Bartlett, the current CEO explains that in nearly 13 years Coffee Republic has yet to end a year in profit. “We were the first coffee chain really and I think there is a disadvantage of being the first. We really over expanded and at the same time Vodafone shops were popping up everywhere and from what we can understand there was great demand for these premium sites, especially in London. The company really paid too much for these, overfitted them and didn’t really concentrate on the model.”
Since 2006 Coffee Republic has readressed these issues. “It’s all about the brand,” Bartlett explains, saying that it is looking to meet the competition that’s appeared in the market, including Starbucks and Caffé Nero.
“Speed of service is one of our key drivers too,” he continues, saying that the company is working hard to strike a balance between customers that just want to grab a coffee and go and those that want to relax or use the wi-fi facilities available at every Coffee Republic store.
The secret recipe
In line with these plans, the chain places a lot of emphasis on the training of its staff, not only to ensure that customers get an efficient service, but also so that they are able to make good coffee. “It’s amazing the number of people that think they’re doing a good coffee and they’re burning the milk,” he points out.
And with a selection of 20 different coffee beans from around the world making up its “secret blend”, it is easy to see why Coffee Republic places such an emphasis on training the staff in all of its own and franchised outlets.
In fact, the company has built very strong relationships with all its suppliers since 1995 and is still using the same company in Milan to brew its beans. “We’ve been through the wars, but people have stood by us, and I think that is testament to the brand,” Bartlett says. This is even true of its catering companies, with whom Coffee Republic has a strong history.
Coffee Republic now has 100 stores across the UK, a number which the CEO states is set to increase rapidly in the next twelve months. Having recently signed deals with Greene King, WH Smith and Cineworld, Coffee Republic concession outlets are set to open quickly.
“And there is a new company called McLeish which started up in Scotland and they have 49 stores to open in two years. There are going to be Coffee Republics in those too,” he adds, stating that it will add “critical mass” to the company and improve its finances.
Overwhelmed with enquiries
Since developing the brand, the company has been “overwhelmed” by franchise enquiries. “We have about 250-300 enquiries every week for franchising,” Bartlett explains. This has resulted in a lot of extra work for Coffee Republic, while they try to identify which enquiries are serious and which are less so. The company now holds a weekly franchise open day so that potential franchisees can go along and find out more.
In line with this, Coffee Republic has taken part in the One Life Exhibition at Olympia, as part of the Be Your Own Boss zone. A recent survey revealed that, when people were asked what they would do if they gave up their jobs, many said that they would like to open their own coffee bar.
“We tell people that you can go out and do it yourself, but unfortunately everybody is demanding branded coffee,” Bartlett points out. And Coffee Republic is in a position to help with those aspirations. Not only that, but Coffee Republic can offer training and branding for the outlet, making the venture much more secure.
International appeal
These potential franchisees are not just based in the UK either. Coffee Republic has appointed an international director in order to manage its coffee bars in eleven different countries, several of which are in the Middle East. “Our highest number of enquiries, internationally, was from Dubai and we have done a deal with the largest retail group there, the Paris Group,” says Bartlett.
He goes on to say that Coffee Republic has a competitive advantage in these markets too, ahead of companies such as Starbucks. “We tend to listen a little bit more to what our store operators are saying [about the menu],” he says. “For example, in India there is a vegetarian society, but there are some areas that are quite heavy meat eaters; you go to some countries and they won’t allow certain meats, so we make sure we’re flexible. Not everybody wants a croissant or a muffin.”
In addition to the flexibility of the menu, the service available can vary from market to market. “In the Middle East they very much like waitress service and we’ve got some areas where that has been half and half, as in the Dubai area; there’s a pick up point where you can help yourself or there is waitress service. It’s those kinds of things that companies like Starbucks don’t tolerate. It’s only a small point, but it’s very relevant.”
Owing to the popularity of the brand the company is now in the process of protecting the brand with trademarks too. Steven Bartlett points to a number of other Coffee Republic stores around the world with no link to the UK company - one store in Tasmania even has full branding. Bartlett makes it clear that this is on the agenda for 2008, as it is something that Coffee Republic given priority to in the past.
An internal branding exercise is also being launched this year, which will sit alongside its brands like Tea Republic. Caffe Republica will see the introduction of organic, Fairtrade coffee to its offering, along with recyclable bags. “We’re also looking at setting up a charity fund very similar to the Costa Foundation, but we’ll probably pick one country to focus on, probably Nicaragua,” Steven Bartlett says. The company will support the communities that supply its beans and build upon its infrastructure while offering customers ethically sourced coffee.
With such a strong focus on branding and turning the company around, it is sure to be an exciting year for Coffee Republic. “It’s been a very exciting journey and there has been a lot of work to do, but we’re starting to see the fruition of that work coming through now and we expect the international side of it to be even bigger than the UK,” he concludes. For the first time in 13 years Coffee Republic is looking to end the year in profit, which is testament to such hard work.
International Master Franchises signed to date
24 January 2008
The map below indicates current Coffee Republic territories:
UK; Ireland; Romania, Turkey; Bulgaria; UAE; Bahrain; Kuwait; and Oman
Click on map to enlarge
If you are a Google Earth user please click here, to download a .kmz file, in order to view Coffee Republic's expanding global presence. Editor - Cheers mikey_b!
The map below indicates current Coffee Republic territories:
UK; Ireland; Romania, Turkey; Bulgaria; UAE; Bahrain; Kuwait; and Oman
Click on map to enlarge
If you are a Google Earth user please click here, to download a .kmz file, in order to view Coffee Republic's expanding global presence. Editor - Cheers mikey_b!
Google Earth icon guide:
Yellow = Shop/deli up & running
Grey = in progress
Purple = FEC up & running
Blue = IMF potential, rumour/discussion stage
Green = IMF announced
The Independent - share tip
25 September 2007Our View: Buy
Current price: 2.8p (+ 0.1p)
Investors could be forgiven for running a mile at the mere mention of the name Coffee Republic. The company has, after all, spent 12 years charging two quid for a cappuccino and yet failed to make money out of it.
Those with an appetite for a punt might care to take a fresh look at the company. Yesterday, it announced a franchising deal with Paris Group, a major retailer operator in the Gulf, which will see the company’s shops springing up in many of the more exciting parts of that booming region such as the United Arab Emirates, Bahrain, Qatar and Oman.
Franchising is new chief executive Steven Bartlett’s prescription for what has been ailing this company, which has long struggled against the other chains in the UK. And the deal with Paris looks a good one. It gives the company an upfront fee, royalty payments, and, crucially, full brand approval.
Bartlett says more are in the pipeline both in the UK and abroad and believes the company should go cash positive before too long. He will understand that investors – who have listened to sweet words from Coffee Republic and been burned before – might feel once bitten, twice shy.
To be fair, he put his money where his mouth is when the company tapped the market for £1m in March, and he might have found a formula to turn this long-time ugly duckling into a swan. Based on that, it is worth tucking a few of these shares away to see if he has. Buy.
International Franchise Agreement - Turkey
16 March 2007
Coffee Republic plc ('Coffee Republic' or 'the Company'), the
independent coffee and deli bar operator, announces that agreement has
been reached with Ada Kahve Gida Sanayi ve Ticaret Limited Sirketi
('Ada') for the Coffee Republic Deli franchise rights for Turkey. The
agreement gives Ada the right to develop Coffee Republic delis and
recruit franchisees to operate Coffee Republic delis in Turkey.
Hakan Tangulu has 20 years of experience in the Turkish wholesale and
retail markets. He has set up Ada with Selma Hisarli to launch and
develop the Coffee Republic brand in Turkey.
Commenting, Hakan Tangulu of Ada, said:
'We are delighted to secure the franchise rights for the Coffee
Republic brand in Turkey at precisely the right time to introduce
Coffee Republic delis into the Turkish market. Even at this early
stage, we have identified a number of potential sites and anticipate
that our first site will be opened in Istanbul in early July. This site
will act as our flagship store and we anticipate it will be followed by
more sites in the near future.'
Commenting, Steven Bartlett, CEO, said:
'We are pleased to be partnering with Ada to develop Coffee Republic
Delis in Turkey. Ada have demonstrated the depth of their retail
knowledge and understanding of the Turkish market to us and we are
confident that they will make a success of the Coffee Republic brand in
Turkey.
We have now completed two international franchise deals and continue to
be impressed with the level of franchise interest for both domestic
and international franchises. Accordingly, we anticipate further
announcements over the coming months.'
Coffee Republic plc ('Coffee Republic' or 'the Company'), the
independent coffee and deli bar operator, announces that agreement has
been reached with Ada Kahve Gida Sanayi ve Ticaret Limited Sirketi
('Ada') for the Coffee Republic Deli franchise rights for Turkey. The
agreement gives Ada the right to develop Coffee Republic delis and
recruit franchisees to operate Coffee Republic delis in Turkey.
Hakan Tangulu has 20 years of experience in the Turkish wholesale and
retail markets. He has set up Ada with Selma Hisarli to launch and
develop the Coffee Republic brand in Turkey.
Commenting, Hakan Tangulu of Ada, said:
'We are delighted to secure the franchise rights for the Coffee
Republic brand in Turkey at precisely the right time to introduce
Coffee Republic delis into the Turkish market. Even at this early
stage, we have identified a number of potential sites and anticipate
that our first site will be opened in Istanbul in early July. This site
will act as our flagship store and we anticipate it will be followed by
more sites in the near future.'
Commenting, Steven Bartlett, CEO, said:
'We are pleased to be partnering with Ada to develop Coffee Republic
Delis in Turkey. Ada have demonstrated the depth of their retail
knowledge and understanding of the Turkish market to us and we are
confident that they will make a success of the Coffee Republic brand in
Turkey.
We have now completed two international franchise deals and continue to
be impressed with the level of franchise interest for both domestic
and international franchises. Accordingly, we anticipate further
announcements over the coming months.'
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