RIDING THE THIRD WAVE
NIAMH DONOGHUE STUDENT ID: 00129250
TABLE OF CONTENTS 1. Abstract 3-4
2. Introduction 5-6
3. Why are they so popular? 7-25
BETTER QUALITY COFFEE INTERIOR AESTHETIC UNIQUE CUSTOMER SERVICE
4. Conclusion 26 - 28
5. Bibliography 29 - 31
Better Quality Coffee
‘Riding the third wave’ : An investigation into the factors that put UK independent coffee shops at an advantage over their branded chain competitors.
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Abstract
ABSTRACT The UK coffee shop landscape is changing. As specialty coffee becomes one of the most important consumer trends affecting the coffee shop market, coffee is no longer seen as a commodity but now as an artisan foodstuff (Allegra, 2013). This recent change in the way people drink coffee has pioneered a completely new coffee drinking experience. The purpose of this essay is to investigate and explain the factors that put UK independent coffee shops at an advantage over their branded chain competitors. The findings in this document have confirmed that there is a trend developing which calls for more ‘third wave’ artisanal independent coffee shops. Using theoretical and empirical methods of research, this essay has outlined the three most significant influences encouraging growth of independent coffee shops. These methods included two surveys; one with 30 coffee shop employees and the other with 100 members of the general public, field research in the form of visiting over 30 different coffee shops in the UK and one in Amsterdam, a series of interviews with industry workers and an in-depth literature review. A literature review reveals how an exposure to specialty coffee, from the third wave independent coffee shops, has allowed consumers to increase their expectations of what coffee shops have to offer them. Top-of-the-line coffee is rare. Due to the smaller nature of the third wave independents they have more accessibility to the best quality coffee compared to branded chains who source coffee in enormous quantities. This is just one way the independents are surpassing the expectations of their customers in terms of better quality coffee. Through field research by visiting a series of different coffee shops, it was evident that a particular interior aesthetic was developing within the third wave independent coffee shops. A survey was conducted to identify whether consumers preferred the interiors of an independent coffee shop over a branded chain coffee shop. Respondents revealed that they preferred the homely individuality of the independent coffee shops to the ‘corporate’ uniformity of the branded chains. Finally, through a series of interviews with coffee shop employees from both the independent and branded sectors, it became evident that independent coffee shops had the luxury of providing a more personal customer experience. This was predominantly down to their ability to organise coffee events and also their support of local communities.
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INTRODUCTION The coffee industry is booming. According to Allegra Strategies, a market research group who specialise in the UK food and drink industry, there were 16,500 UK coffee shops open for business in December, 2013. This represents an annual growth of 5.7% (fig.1). Within this burgeoning industry, three categories of coffee outlets exist - Branded chains e.g. Starbucks, Costa coffee and Caffe Nero, Non-specialist coffee shops, e.g department stores, supermarkets, retail, pubs, hotels, quick service restaurants and forecourts and artisanal Independent coffee shops.
The most recent Allegra report from 2013 showed that there were more independent coffee shops open in the UK (5,830 in total) than there were branded chains (5,531 in total) or non-specialist coffee shops (5,140 in total). The report estimated that the independents show no sign of slowing down and would reach an estimated 7,000 coffee shops by 2018. The report also shows that branded coffee chains show similar signs of growth. However, experts believe that if the branded chains want to stay relevant they will have to tune into consumer lives on a more personal level. In order to stay popular, they will have to provide a more authentic and intimate experience, similar to those provided by an independent (Allegra Strategies, 2013).
From a personal observation, I have noticed more artisanal ‘third wave’ independent coffee shops opening in different UK cities, most notably in London, Edinburgh and Glasgow. Based on this observation, I sought to investigate their perceived growth in popularity. I have collated research to help explain the reasons why they have become more popular.
This essay investigates the reasons for the growth and popularity of the artisanal independent coffee shop, compared to its branded counterparts in the UK.
2.1.3 Market Overview – Market Size by Outlet Numbers / SECTION 2: MARKET
Market Size by Outlet Numbers
Allegra estimates that the total UK coffee shop market, including branded coffee chains, independents and non-specialist operators, reached 16,501 outlets in December 2013. This represents annual growth of 5.7%. Non-specialist operators have driven growth in the coffee shop market this year, adding net 382 stores, primarily driven by pub operators improving coffee credentials. Following compound annual growth of 9.1% between 2008 and 2013, Allegra predicts total market growth will stabilise at 4.5% per annum to exceed 20,500 outlets by 2018, driven primarily by branded chains growth in response to the increased competition of nonspecialists in recent years. Compound Annual Outlet Growth Dec 13-Dec 18F Total Market 4.5%
FIGURE 2.1.1 – TOTAL NUMBER OF UK COFFEE SHOP OUTLETS, BY TYPE, AUG 1999-DEC 2018F No. of Outlets
22,000
Branded Coffee Chains
20,000
Independent Operators
Non-Specialists
18,000 16,000 14,000
S7 A1
Fig. 1
5,851
6,132
6,402
Non-Specialists 4.5%
Dec-18F
Dec-17F
9,912 6.3%
Dec-16F
9,321 5.0%
Dec-15F
8,887 5.3%
Dec-14F
8,439 6.2%
Dec-12
7,950 7.1%
Dec-13E
7,423 6.6%
Dec-11
6,943 11.4%
Dec-10
6,204 14.9%
Dec-09
5,400 4.6%
Dec-08
Dec-07
S6
Dec-06
S5
Dec-05
S4
0
Dec-04
S3
2,000
Dec-03
S2
4,000
Dec-02
6,000
S1
4,758 4,422 4,470
5,585
6,992 1,463 6,483 6,729 Independents 1,338 6,034 6,251 3.7% 1,252 1,287 5,633 5,830 1,159 5,469 1,092 5,236 5,336 903 5,136 522 5,041 562 4,967 522 4,760 4,869 4,453 4,587 4,260 4,345 6,830 7,127 Branded chains 4,100 5,531 5,871 6,218 6,531 4,086 4,422 4,688 4,964 5,225 5.2% 2,520 2,766 3,067 3,533 2,271 2,067 1,810 1,382 778 Dec-01
8,000
Dec-00
10,000
3,879
Aug-99
12,000
5,140
5,354
10,685 13,537 14,446 14,903 15,616 16,501 17,259 18,055 18,865 19,691 20,521 TOTAL 7.9% 27.2% 6.8% 3.2% 3.7% 5.7% 4.6% 4.6% 4.5% 4.4% 4.2% YOY Growth
Notes: i.Non-specialist segment includes department stores, supermarkets, retail, pubs & hotels, quick service restaurants and motorway & forecourts and excludes branded chains who have partnered with non-specialist players; ii. Figures restated to include additional food-focused operators into the market definition as well as revised end of year store numbers where restated by operators. Source: Allegra Strategies Research and Analysis, 2013 Page 1
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INTRODUCTION Third Wave Independents – what is the third wave?
Fig. 2
The third wave artisanal independent coffee shops, like the one in the image above, can be differentiated from other independent coffee shops because they sell specialty coffee; they have a certain interior aesthetic and have small groups of staff who are usually passionate about the beverage prior to hiring. The Third Wave of Coffee alludes to a current progression in the coffee industry. ‘Third Wave’ coffee shops strive to create the highest standard of coffee and consider the beverage to be an artisanal foodstuff, similar to wine, as opposed to a commodity. (Jeffries, 2009) The terms ‘first’, ‘second’ and ‘third wave’ of coffee were coined by Trish Skeie, in a 2003 article for the Roasters Guild’s Flamekeeper magazine. The ‘first wave’ of coffee began in the 19th century where coffee was predominantly used as an instant ‘pick me up’. This wave of coffee concentrated on consumption and instant coffee made in the home (Skeie, 2003). Skeie describes the ‘First Wavers’: ‘They were and are the mass-marketers. While coffee has steadily grown in popularity since it´s discovery, the First Wavers made it their mission to increase consumption exponentially.’ (Skeie, 2003). The ‘second wave’ of coffee came when branded chains such as Starbucks, globalised the coffee market and modified the drink by adding sweeteners, creams and syrups. Influenced by consumerism, the ‘second wave’ saw an attempt to define specialty coffee by ‘moving the focus from Robusta coffee (traditionally used in instant coffee) to Arabica coffee which is typically considered a higher quality bean.’ (Beandrinking.com.au, 2014) The ‘third wave’ refers to taking coffee to a completely new ‘level of sensory experience’ (Beandrinking.com.au, 2014). Consumers are better educated in coffee now than ever before and the ‘third wave’ independents are fulfilling the needs of these customers. Though improvement in coffee taste is a key factor for existence of ‘third wave’ independent coffee shops, it is not the only reason independents are on the rise. Other factors such as the interior aesthetic and customer service are also factors that have shaped and help expand the independent coffee shops that we see today. The following essay is an in-depth analysis of the various reasons for the success of the independent coffee shop. Page 6
2. WHY ARE THEY SO POPULAR? A variety of reasons came to light throughout my time investigating why ‘third wave’ independents have become so popular and pervasive in the UK today. There were three main influential factors that came to the fore when examining the growth of the ‘third wave’ independent coffee shop industry - The use of better quality specialty coffee; a more individual and pleasing interior aesthetic; and the provision of a more unique customer service through supporting local communities and providing more opportunities for customers to learn more about the coffee making process.
Fig. 3 Page 7
Better Quality Coffee
BETTER QUALITY COFFE According to Allegra, the most important consumer trend in 2013 affecting the coffee shop market was the growth of specialty coffee. (Allegra Strategies, 2013)
“Specialty coffee is defined as a crafted quality coffee-based beverage, which is judged by the consumer (in a limited marketplace at a given time) to have a unique quality, a distinct taste and personality different from, and superior to, the common coffee beverages offered. The beverage is based on beans that have been grown in an accurately defined area, and which meet the highest standards for green coffee and for its roasting, storage and brewing.” (Scae.com, n.d.) Consumers are more informed about coffee now than ever before. This is largely due to an exposure to specialty coffee; initially from the branded chains (second wave of coffee) and now from strong third wave independent coffee shops. Coffee drinkers now know how a good coffee should taste and know exactly what to look for. They have become more discerning (Allegra, 2013). With this has come a certain amount of connoisseurship, and the branded chains are seen to be failing to meet the standards of the modern coffee enthusiast. The ‘second wave’ of coffee saw branded chains focus on providing a place for people to come and enjoy the ritual of coffee as well as introducing them to better quality coffee. At this point, Starbucks focused on selling better quality coffee (For example switching from the Robusta to the Arabica bean), but not the best coffee and have since not developed on much further from this (Edwards, 2014). Third wave independents strive to produce and sell the best coffee available. They use specialty coffee beans, which are roasted in-house or by an artisan roaster. Not only are the beans of a higher quality, but they are also roasted differently which produces an entirely different flavour.
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Better Quality Coffee
In the past and during the ‘second wave’ of coffee it was commonplace to roast the coffee beans darker and longer which produced ‘dark, bitter chocolate and caramel tones’ (Rayner, 2014) whereas now, the beans are roasted lighter and for less time. Salvatore Malatesta, who runs 11 coffee outlets in Australia and is founder of the notorious St Ali’s coffee in Melbourne (fig. 4), which in itself is renowned for being one of the world’s top coffee capitals, explains to Jay Rayner why this taste change has occurred. He states that ‘modern coffee aficionados now like to emphasise that [coffee comes from] the seed of a fruit. So they roast [the beans] for less time and that, in theory, gives you access to all the fruitier, fresher flavours.”
Chermelle Edwards from The Guardian newspaper discusses her love for coffee in a recent article. She briefly defines what it means to be a coffee connoisseur. “I’ve bought into paying more to know where my coffee comes from, tracing the coffee I buy to a website that tells me about its trip – from my coffee’s home country and farm to my cup, in one of the two coffee shops I visit each day. I was riding the “third wave” of coffee way before I knew the term even existed”
Theresa Von Fuchs, director of wholesale at Irving Farm, a leading third wave coffee company in New York, states that another reason independents are more likely to use better quality coffee is down to the smaller nature of the companies. When big companies source beans, they need them in enormous amounts, and the specialty, top-of-theline coffee is handpicked and rare. (Ozersky, 2013)
Von Fuchs also points out that consumers need to ask the right questions in terms of the quality of coffee. ‘When was this roasted? Who are your suppliers?’ if the staff cannot answer these questions in a well-informed manner, chances are the coffee isn’t specialty. Again, the small-scale independent coffee companies have a distinct advantage here as they have smaller groups of staff and more control over making sure their staff are well-educated and up-to-date with the coffee they are selling.
Coffee trees bear a fruit called the coffee cherry (Fig. 6), which when ripe, turns a deep red colour. The cherries ripen at different times, so for only the ripe cherries to be picked it needs to be done by hand, an extremely labour intensive process, as opposed to being strip picked which is when the entire crop is harvested at once, including the unripe cherry. (Ncausa.org, 2014)
Recent survey results indicate that better quality coffee is one of the top factors influencing consumers’ decisions to go to an independent coffee shop over a branded chain. 53% of people choose to go to an independent over a branded chain because of the quality of their coffee, therefore supporting the growth of the independent coffee shops.
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Fig. 4
Fig. 5
Fig. 6 Page 10
Interior Aesthetic
INTERIOR AESTHETIC “Independent coffee shops have a quirky and relaxing atmosphere, they are interesting and create an enjoyable experience.” - Survey participant’s response explaining why they prefer independent coffee shops. Despite almost two decades of rapid growth, Statisa, a leading online statistics company, highlights that although the coffee industry is expanding, actual coffee consumption in the UK is lower now than it was in 2009. That year, the average purchase per person per week of coffee consumed outside the home was 80 millilitres compared to 76 millilitres in 2012 (Fig. 7). Similarly, coffee consumption within the home has decreased, which can be seen in fig. 8. In 2009, 3.22 million 60-kilo bags of coffee were consumed. The number of bags consumed had fallen to 2.93 million bags in 2012. Nathalie Thomas, from the Telegraph, has highlighted more recent evidence of a decrease in coffee consumption in the UK. In an online article from this year, she discusses Barclay’s findings. “According to analysts at Barclays, the way Britons are drinking coffee has changed. They point out that, although the coffee shop market, has continued to grow, coffee consumption per head hasn’t. In fact, consumption levels are now lower than they were in 2006.” (Thomas, 2014) Thomas then proceeds on to quote Vicki Stern, a leisure analyst for Barclays. “This [decrease] means that the growth of coffee shops has in no way increased the UK consumption of coffee…rather, the way in which coffee is being consumed has changed with people now visiting coffee shops where they might previously have consumed instant coffee at home or in the workplace” As I have outlined, the quality and taste of coffee is of primary importance to the third wave independent coffee shops because it is what differentiates them from their competitors. However, as Stern has mentioned, there is a change in the way people are consuming their coffee. There are more and more people going out to drink their coffee as opposed to drinking it in the home or in the workplace.
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Fig. 7
Fig. 8
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Interior Aesthetic
So why is there a rise in the amount of people visiting coffee shops? In a recent survey I conducted, results illustrate that when visiting a coffee shop, if cost and convenience are not factors, 70% people would actively choose to go to an independent coffee shop over a branded chain. Of those 70%, 76% would consider the atmosphere and aesthetic of a coffee shop to be the most important deciding factor in choosing a coffee shop. 90% of the people who took the survey also said that they thought independents have a better atmosphere and interior when compared to their branded competitors. If you examine fig. 9 you will see a prime example of a branded chain coffee shop. These images were taken in Starbucks in Edinburgh’s City Centre to illustrate the general interior design of Starbucks as a branded chain coffee shop. Branded chains, such as Starbucks, have strict interior design guidelines, which are replicated in all of the Starbucks around the UK which means customer know what to expect when they visit the branded chain (Appendix 2., Starbucks layout). The branded chains fail to generate a sense of intrigue for their customers; they get their beverage and instinctively look for milk, sugar and a seat. This has led survey participants to describe the branded chains as ‘less inviting’ and ‘corporate’.
Fig. 9
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Interior Aesthetic
Interestingly, when you compare design aspects such as seating, lighting and general interior design to the independent coffee shop, seen in fig. 10, it becomes evident that the interiors have been more carefully considered in the independent, which has softer more intimate lighting, comfier seating and a more intriguing interior.
Fig. 10
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Interior Aesthetic
From field research through visiting over thirty different independent coffee shops within the UK, mainly in Edinburgh and Glasgow, similar aesthetic patterns became evident throughout them. One of the common similarities I found among the artisanal independent coffee shops was their use of industrial and vintage-style lighting. The images titled ‘lighting’ to the right show examples of the workshop-style lighting used in Steampunk Coffee in North Berwick (fig. 11). The same lighting can be found in The Brew Lab and Fortitude Coffee Merchants, which are coffee shops in Edinburgh. Each shop has taken inspiration from industrial factory lighting. This suggests that they aim to recreate an artisan feeling in their coffee shops. Steampunk have explained their ethos on their website by saying they are ‘about people making stuff – tinkering away in their shed … taking something mass market and ubiquitous and making it unique. Or taking something old, beautiful and defunct and giving it purpose again.’ Coffee is something ‘mass market’ which they have taken and made it unique through their independent coffee shop and its quirky interiors. According to Matt Carrol from Fortitude Coffee Merchants Edinburgh, Independent coffee shops see themselves as ‘artisan workshops’ creating ‘bespoke cups of coffee’, so it comes as no surprise that they have each interpreted a ‘workshop’ concept in their interior design.
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LIGHTING
Steampunk, North Berwick (Fig. 11)
The Brew Lab, Edinburgh (Fig. 12)
Fortitude Coffee, Edinburgh (Fig. 13) Page 16
SEATING
Steampunk, North Berwick (Fig. 14)
Project Coffee, Edinburgh (Fig. 15)
Artisan Roast, Edinburgh (Fig. 16) Page 17
Interior Aesthetic
Another common characteristic was the types of seating used in each shop. Through the course of my research, I have found that most of the coffee shop owners have drawn inspiration for their interiors, from their own love and craft of artisan specialty coffee, and this love for artisan produce expands into different areas of their interior design. Matt from Fortitude came to this realisation when he and his wife were choosing what materials to use for their coffee shop tables. They settled on an African hard wood called Iroko, which was advised to them by a local joiner and tailor made to fit their shop. He said that ‘everything is a little bit artisan and has its own story behind it, I guess that is just what we like.’ Matt also spoke about how each independent coffee shop uses a different coffee roast; at an independent, consumers will have the opportunity to sample a coffee they will have never tried before. Each blend is as authentic as the next. Which brings me to another common interior trait within the independents. Steampunk, North Berwick, mixes and matches old vintage chairs in their coffee shop, they bring to life ‘something old, beautiful and defunct and giving it purpose again’. Each chair is different to the next, which reflects the idea of specialty coffee and gives a real sense of character to the coffee shop. In the images titled ‘seating’ you can see examples of the different seating used in Steampunk (fig. 14), and Edinburgh’s, Project Coffee (fig. 15) and Artisan Roast (fig. 16). Each shop has adopted a similar concept but implements it in a different way to the other.
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Interior Aesthetic
Fig. 17 - Headfirst Coffee Roasters, Amsterdam
The Brew Lab, Edinburgh
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Interior Aesthetic
Though there are similarities present in the independent coffee shops, mass individualism is experienced as each place produces a different interior, but with a similar idea behind it. Much like the coffee itself, when you go into a coffee shop you know you are getting a cup of coffee but have the opportunity to try a new roast that you will not get anywhere else. In the same way, when you enter an independent coffee shop, consumers will be surrounded by an environment that is completely individual to anywhere they have been before. It can also be considered a positive aspect that they have a similar aesthetic as Matt from Fortitude pointed out, “like the branded chains, anywhere in the world you will be able to find some kind of specialised coffee scene for people to hunt out… there is that slight feeling of familiarity but also there is a also a wonderful individuality that you get.” If you look at fig. 17 you can see an image taken in Headfirst Coffee Roasters in Amsterdam positioned beside an image taken in the Brew lab in Edinburgh, it would be easy to mistake them as the same coffee shop with the similarities in lighting, the tiling on the walls and the polished concrete countertops. Though Starbucks’ initial brand message was to create a third place for people to enjoy the experience of having a coffee outside of their homes and work, they again, failed to create the best environment for their customers. Naturally, as a huge company there needs to be a certain amount of uniformity around all of the shops, however, because of this, they fail to create a comfortable and intriguing environment for their customers as their generic branded aesthetic, which is the same in each country, feels less personal. This is something that survey respondents commented on a lot when describing the independents as more ‘homely’, ‘unique’ and ‘intimate’. Understandably, it is easier for independent coffee shop owners to create a more considered individual interior as they only have one shop to look after. However, it is the individuality of the third wave independents coffee shops that has drawn consumers into the coffee shops and continues to help shape and grow the independent coffee shop industry.
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Customer Experience
CUSTOMER EXPERIENCE Are independent coffee shops becoming more popular because of their unique customer service? Throughout the course of research for this essay, I have made various observations into the level of customer service provided in both the independent and branded coffee shop industry. In any consumer-based business, customer service is paramount. However results have shown that, branded chains are at a disadvantage over independents for two different reasons. The first reason being that branded coffee companies do not provide the same opportunities for their staff to interact and meet their customers on a more personal level the way the independents do. The second reason is because branded chains fail to support local communities, which is a factor people consider important when deciding to visit a particular coffee shop.
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“Branded chains do not provide the same opportunities for their staff to interact and meet their customers on a more personal level” During a discussion with a Starbucks employee about customer service in branded chains, she explained that the chain had put many initiatives in place to provide a better more personal customer experience. ‘Starbucks strived for making the customers experience personal; asking names, loyalty cards, “the perfect drink” …but I guess it didn’t really always create a genuine bond with the customers… it turns into a bit of a conveyor belt’ – H. Tompson, Starbucks employee. However, these initiatives do not always have the desired effect as Ian Sanders points out in an article for the Financial times. He quotes George Scott, a food and grocery retail analyst who also owns his own coffee shop, ‘A proper local coffee shop will know your name and usual coffee order,’ he says. ‘If they actually have to ask your name, then it’s just very superficial. Putting names on cups is more about process efficiency and getting orders out of the door fast than delivering an intimate customer experience.’ Not only does writing peoples names on cups seem superficial and disingenuous but more often than not the staff spell customer names incorrectly. This has led to endless social media posts poking fun at the spelling attempts of Starbucks staff,
for example Cecilia, in the image below was spelt, ‘Sasealya’ (Sanders, 2014) During busy periods, branded coffee chains aim to get as many people through the till as quickly as possible, Tompson explains ‘I used to sometimes feel like I was on autopilot at work, like I had my till routine down to a T, e.g. “are you sitting in or taking away? What size would you like that? … What ever the customer asked I had a ready-made answer for them. It’s convenient for a fast paced store but I guess it’s not exactly personal for a customer.’ Scott also continues to discuss how important it is to hire staff who are passionate about the product. “It’s not just about training people, it’s about exciting them,” he says. “That passion for the product is missing in the chains.” This could be down to the simple fact that there are larger groups of staff compared to independents. With a smaller group of staff it is easier for owners and management to ensure staff have not only have a genuine interest in the product they are selling but also have a desire to learn more. Independent shop owners have more opportunity instill the same passion they have for coffee on to their staff.
fig. 18 Page 22
Customer Experience
Aside from the stricter corporate codes of conduct, branded chains don’t have the same freedom to organise planned coffee events for their local customers. Gordon St coffee in Glasgow is a good example of how an independent coffee shop has the ability to create more interactive opportunities for staff to create personal relationships with customers. Gordon St. manages to do this in a number of different ways. Firstly and most successfully, they are the only coffee shop in central Glasgow to roast their own coffee beans. They roast their coffee five times a week on the second floor of the coffee shop (Fig. 19) and invite their customers to come into the shop, to get involved and are free to ask the resident coffee roaster any questions they may have about the coffee roasting process. Since opening in May 2014, Gordon St Coffee has played host to two coffee roasting evenings, which involves customers getting to watch and learn how to roast coffee with a question and answer session. They learn how to cup coffee (a tasting technique) and learn how to make their favourite coffee on a professional coffee machine. They have also hosted a tea party in aid of St. Vincent’s hospice, which consisted of a tea tasting, a question and answer session from the Wee Tea Company and a pack of tea of their choice.
As well as supporting the local community by encouraging the people of Glasgow to immerse themselves in the world of specialty coffee they have had a music session where a Glasgow-based musician performed in the coffee shop, which is something they plan to try again in the New Year. This is a perfect example of something that was easily arranged, yet would be unlikely to happen in a branded chain coffee shop. The manager of Gordon St also pointed out that taking staff comments on board was an advantage of being an independent as they can implement ideas at any point. Matt Carroll, owner of Fortitude Coffee Merchants Edinburgh has also created similar staff customer interactions as he organised a coffee tasting where people came and had the opportunity to taste ten different Scottish coffee roasts. This helped him and his wife to have a proper chat with their customers and he felt as though there was a community being built around this coffee scene that they are now a part off. ‘It’s even a good little community in the sense that if I go to another independent and see some customers that are regulars in Fortitude, I say hello, and recognise faces. It creates a sense of belonging.’
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Customer Experience
Fig, 19
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Survey results have shown that 29% of people would consider support of their local community a valid reason for choosing to visit an independent coffee shop.
By visiting an independent coffee shop, customers can actually help local businesses. As well as offering your custom to the coffee shop, you are also servicing their local food providers. By way of illustration, Love Crumbs is an independently owned cake shop in Edinburgh that sells its baked goods in Fortitude Coffee Merchants along with various other coffee shops around the city. Union of Genius is another independently owned business that specialises in soups and sandwiches. They deliver soup and other hot food to the Brew Lab daily, which is another independently owned coffee shop in Edinburgh. Another advantage that the independents hold is their food is freshly delivered every day. This is in stark contrast to the food being served in branded chains, which has been described by survey participants as ‘tasteless’ and ‘overly-manufactured’.
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CONCLUSION
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Conclusion
CONCLUSION There are many factors that support the growth of the third wave independent coffee shops over the branded chains in the UK. I have outlined the three most significant influences over the course of this essay, which include an increased exposure to specialty coffee, a more pleasing interior aesthetic and a more personal customer experience. An exposure to specialty coffee has seen the beverage become less of a commodity and more of an artisan crafted drink. The demand for the third wave independent coffee shop grows as more people develop an interest in coffee. Initially introduced to people through the branded chains, independents now offer the best quality coffee available, as illustrated throughout this essay. The way people drink their coffee is also changing as people opt for fruitier tastes over the long dark flavours which were popular during the second wave of coffee. (Rayner, 2014) This is something branded chains have not managed to compete with as they are still opting for the darker coffee roasts, which puts independents at a strategic advantage. The interior aesthetic of the third wave artisanal independent coffee shops has been proven to impress more people compared to the interiors found in a branded chain. Through a survey conducted for the purpose of this essay to understand what it is people favored about independent coffee shops, it became evident that consumers are more drawn to the individuality that can be found in independents which is not seen in the corporate generic surroundings of the branded chains. Finally, due to the smaller nature of the independent coffee shops, owners and staff have more control over how they can create opportunities to involve their customers in coffee related events. These events go beyond the standard barista-customer relationship. Organised tasting events, like the ones previously mentioned in Gordon Street coffee and Fortitude coffee, create a more personal and approachable way for customers to get involved in the coffee making process. Survey results also show that people place importance on supporting their local communities. Third wave independents are not only a local business themselves, but through selling fresh goods from local bakeries and cafes, they are generating business for other independents around the local area.
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Conclusion
CONCLUSION As people become more interested in specialty coffee they demand to know more about the coffee roasting process and the origin of the coffee bean. This is something that third wave independent coffee shops realise and are already preparing themselves for. There has already been mention of a ‘forth wave’ of coffee where there will be a greater emphasis on improving communication and relationships with specific farms and not mere global regions or nations. Ben Mann, director of retail operations at Gimme! coffee, has pulled together a few of the potential attributes of the ‘fourth wave’ of coffee which include encouraged sustainability through communication and education relationships between farmers, exporters and roasters. All purchasing practices from the farmer to the retail customer will be made known and there will be a larger involvement of the customer in the industry. Actions are already being implemented in some of the top independents to accommodate the needs of the potential ‘forth wave’ coffee enthusiasts. For example in Gordon Street coffee in Glasgow, customers are heavily encouraged to come and learn more about the coffee making process through organised coffee tasting events and their in-house coffee roaster is happy to speak to customers and answer any questions they may have about the roasting process. If the coffee industry continues to move in the direction of becoming a more specialised product, branded coffee chains will struggle to meet the needs of their customers and therefore independents will continue to be at an advantage over the branded chain competitors.
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Table of Illustrations
ILLUSTRATION Figure. 1 Figure. 2 Figure. 3 Figure. 4 Figure. 5 Figure. 6 Figure. 7 Figure. 8 Figure. 9 Figure. 10 Figure. 11 Figure. 12 Figure. 13 Figure. 14 Figure. 15 Figure. 16 Figure. 17 Figure. 18 Figure. 19
SOURCE Allegra Strategies. (2013). Market Size by Outlet Number [Chart] Allegra Stategies Market Research Group. Donoghue, N. (2014). Project Coffee exterior, [Photograph] In possesion of: N Donoghue. Edinburgh. Pinterest, (n.d.). Barista pouring coffee. [image] Available at: https://s-media-cache-ak0.pinimg. com/236x/e5/29/27/e52927e7678326a16ea0382224380d3e.jpg [Accessed 5 Nov. 2014]. St. Ali’s coffee Shop Melbourne. (n.d.). [image] Available at: http://jackisnotdull.com/2011/04/22/stali-and-sensory-lab-melbourne/ [Accessed 15 Dec. 2014]. Irving Farm. (n.d.). [image] Available at: http://www.irvingfarm.com/wp-content/uploads/2012/10/ IFCR_085.jpg [Accessed 7 Dec. 2014]. Coffee Beans. (n.d.). [image] Available at: http://imagecache5d.allposters.com/watermarker/26-2674-9C2UD00Z.jpg?ch=894&cw=670 [Accessed 3 Nov. 2014]. Statista. (2012). Average purchase per person per week of coffee consumed outside the home in the United Kingdom 2006 - 2012 [Chart] Statista Online Statistics Company. Statista. (2012). Coffee consumption in the United Kingdom from 2009 - 2012 [Chart] Statista Online Statistics Company. Donoghue, N. (2014). Starbucks Edinbrugh interior, [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Project Coffee interior, Edinburgh. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Steampunk lighting, North Berwick. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). The Brew Lab lighting, Edinrbugh. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Fortitude Coffee Merchants lighting, Edinbrugh. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Steampunk seating, North Berwick. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Project Coffee seating, Edinburgh. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Artisan Roast seating, Edinburgh. [Photograph] In possesion of: N Donoghue. Edinburgh. Donoghue, N. (2014). Coffee Shop Interiors, Amsterdam/Edinburgh. [Photograph] In possesion of: N Donoghue. Edinburgh. entertainment-life (2014) [Photograph] Available at: http://entertainment-life.diply.com/differentsolutions/starbucks-never-fails-mishear-names-their-customers/40815 [Accessed 7 Dec. 2014] Donoghue, N. (2014). Gordon St. Coffee, Glasgow. [Photograph] In possesion of: N Donoghue. Edinburgh.
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NIAMH DONOGHUE