Scoffs Group UK evolved following the acquisition of three Costa Coffee stores in Essex and East London. Since then, the group has continued to expand its portfolio, quickly becoming Costa’s largest UK-based partner. COO Paul Turner mapped out the journey so far, during an in-depth interview with Inside Food & Drink. Report by Imogen Ward.
Since its establishment in 2012, Scoffs Group UK, through the leadership of CEO and Founder Antony Tagliamonti, has built an impressive portfolio of more than 100 Costa stores. Initially brought on two years ago to help accelerate the growth of the business, COO Paul Turner was pleased with the results already achieved by the franchisee.
“Following the purchase of those first initial stores back in 2012, Scoffs Group had expanded to 31 stores by 2018,” explained Paul. “During that same year, the group undertook its largest growth milestone to date: purchasing another large franchise group of Costa stores across the South of England.
“Today, we operate with 113 Costa stores that are situated across the country from Cornwall all the way to Norfolk.”
Scoffs Group became the first Costa franchisee partner to acquire company owned stores in 2022. This was accomplished via the acquisition of 20 equity owned stores within Cornwall.
The group relies on an impressive workforce to keep these stores running; in the mix are several key players that transferred into the business from Costa’s own corporate team, including Luke Daines, Operations Director, David Cockfield, Finance Director, and Paul himself.
“Having already achieved some excellent growth, the three of us joined Scoffs Group to help facilitate further growth, bring in the expertise from Costa, and – putting it bluntly – exceed it,” said Paul.
Thinking outside the cup
As part of its overarching mission for growth, the group has been exploring new avenues. So far this has been a success, with the latest addition to Scoff Group’s portfolio focused on Asian cuisine.
In April of this year, Scoffs Group successfully opened its first itsu branch. Located in Exeter, the branch provides customers with top-quality, freshly prepared Asian-inspired food.
“itsu is known as a healthier F&B brand, which really appeals to the younger generation,” explained Paul. “That’s why Exeter was such a great location for our first itsu store, because it is an aspirational city with a high student population.”
Despite only being open for a few months, the new store has exceeded Scoffs Groups’ expectations, with demand continuing to rise. Impressively, this popularity is anticipated to continue growing as Scoffs Group readies the store for the introduction of more delivery platforms. And as sales trend upwards, more positions are set to join the 20 plus enthusiastic team members already working at the site.
“The success of itsu Exeter has inspired us to search for a second site, which we hope to have up-and-running within the next few months,” revealed Paul. “If this success continues, we will look to open further stores next year.
“Of course, Costa will always remain at the core of our business because of its size, but by having a more diverse portfolio, then we will have a stronger resilience to any market downtime. When we have very hot days or excessive rain, our Costa stores witness a downfall in traffic. However,
having a completely different brand on board provides more security – as one slows, the other can accelerate.”
Adjusting to the market
Costa has been incredibly successful over the years, with more than 14,000 locations across the UK, including ‘Proud to Serve’ locations, ‘Costa Express’ machines, as well as drive-thru locations. With this in mind, it is no wonder that growth in this segment can sometimes feel implausible.
To overcome this oversaturation, Scoffs Group intends to target the market in a different way – having just opened its sixth Costa drive-thru location in Truro, Cornwall, at the start of June.
“New growth in Costa is very challenging,” commented Paul. “However, where we intend to focus our growth will be on the drive-thru market – with a particular focus on building greenfield locations alongside new petrol stations and retail parks.”
With the groundwork for these developments already underway, and with new locations planned to open before 2025, Scoffs Group expects the 2024 period to achieve its highest ever annual revenue.
Moving with the times
Acquisitions (although very important) are just one of the ways that Scoffs Group is looking to enhance its profits. The group is also working hard to optimise its operations with the assistance of several specialists.
“We have one of the best systems set ups of any business,” said Paul. “We have worked hard to mirror the infrastructure of larger corporate juggernauts while at the same time, seeking to operate
as efficiently as possible. We have just added Elementsuite to our systems set up, which is used to manage all our scheduling, rotas and HR onboarding processes. This will help us streamline our efficiencies effectively.”
The group is also constantly assessing its supply chain and partnerships. As Scoffs Group’s greatest asset, these companies have played a pivotal role in its success.
“All of our suppliers have been exceptional, and there are too many to name them all, but RAB Retail Ltd has been particularly helpful in helping us find new sites and dealing with landlord and tenant matters,” said Paul. “Founder & Director Richard Brown has worked with Costa properties before, and the other Directors have plenty of experience in the industry, so there’s some real talent within RAB. We are grateful for the company’s continued support.
“Pinnaca Retail Solutions is another great example. We rely on this retail and IT specialist as an outsourced IT support team, and the Founder & CEO Minesh Thakkar specialises in supporting retail businesses with their IT requirements, and he really looks after every aspect, which is amazing.”
Green giving
Despite maintaining a strong commitment to growing the business, Scoffs Group also dedicates time to fundraising. Most recently, Paul (alongside Founder Antony Tagliamonti and the rest of the leadership team) climbed Mt Snowdon in support of the Costa Foundation and its invaluable work, raising £8,560. The group also regularly holds fundraising weekends, and last year raised £32,070 because of these events. Keen to push its efforts even further, this
year Scoffs Group is committed to raising a whopping £50,000 for Costa Foundation.
“We are well on track to meet our 2024 target, and we have lots of exciting events planned to do so,” explained Paul. “The Foundation and its work are truly remarkable, and Chelsea Carter, our Costa Foundation Champion got to visit Vietnam and see first-hand the positive effective these funds are having.”
The group has also been making several key green investments, including improving the energy usage at each of its sites. Every step Scoffs Group takes is one towards a bigger and brighter future.
“Throughout its operation, everyone at Scoffs Group has worked as a collective to transform how the business operates,”
Paul said, in conclusion. “And that has enabled us to look at every aspect of the business and improve it in a positive way.
“Our workforce is filled with passionate individuals who will help us achieve our goals, because here at Scoffs Group we don’t stand still.” n
