Coffee shops lift lid on secret to success against the chains

It is often an epic struggle for independent businesses to survive against the onslaught of national chains.  

But in Norfolk it is the independent coffee shops that are winning the battle, with local owners enjoying a rise in sales and expanding across the region. 

Despite the cost-of-living crisis, many still consider coffee an affordable luxury, shown by nearly three quarters of independents reporting a rise in sales last year.

Overall the UK’s independent coffee shop market is estimated to be worth £4.6 billion, with the number of shops growing by 2.2pc to more than 12,200 last year, according to the World Coffee Portal.

Strangers Coffee Company in Pottergate, Norwich (Image: Denise Bradley)

QUALITY COFFEE 

Strangers Coffee Company first opened in Norwich's Pottergate in 2009 and now has three shops in the city, as well as a takeaway kiosk in Jarrolds department store. 

"Sales are on the up," Alex Sargeant, director of Strangers Coffee Company, said. 

"We've seen a growth in coffee shops mainly due to changes in retail. The high street used to be predominantly product-based, but it is now becoming more experience-led. 

Strangers Coffee Company directors, from left, Samuel Maddocks, Alex Sargeant, and William Maddocks, at their pop-up coffee bar at Jarrolds in Norwich (Image: Denise Bradley)

"We set our stall out differently to the main coffee chains because our focus is speciality coffee - a premium product based on its quality.

"The coffee at the chains isn't bought based on its quality or flavour, it's bought based on its price, whereas we're all about buying a quality, unique product, which is what interests the coffee drinkers we deal with. 

"We work directly with the farmers producing our product. We're into fruitier and funkier coffees from around the world. The chains' coffee is bitter and burnt, whereas ours you can really taste the flavours of how the coffee was grown. 

Strangers Coffee Company Alex Sargeant, right, working with Brazilian student Callum Brough to sell coffee from his family's farm (Image: Denise Bradley)

"We sell single-origin coffee and go through so many selection coffees before we get to the ones we buy. Around 95pc of the coffees I taste I reject. Currently we've got around a dozen single-origin coffees and three blends.

"Would you rather pay for a bitter, poorly-made cup of coffee, or do you go round the corner to Strangers and pay slightly more but get high-grade, ethically-sourced speciality coffee made well by a trained barista? I think it's worth it, and a lot of customers would agree."

READ MORE: How pubs plan to pack out for England games at Euro 2024

Cafes and coffee shops in the UK: Total value and annual change from 2011 to 2029 (Image: IBISWorld)

THE RISE OF THE 'INDYS' 

Two Magpies Bakery opened in Southwold in 2012 and now has 10 cafes across Norfolk and Suffolk.

Owner Steve Magnall said the coffee industry has been growing for the past decade, which he expects to continue. 

“The rise of the 'indys' is twofold: customers get better value for money and a choice of different types of coffee rather than just one standard blend,” Mr Magnall said.

Steve Magnall, owner of Two Magpies Bakery, which has ten cafés across Norfolk and Suffolk (Image: Two Magpies Bakery)

“We use Allpress, which is a small roastery in London, and we make all our own products by hand. I’ve got a team of 60 people making croissants, sausage rolls, bread and cakes.

“Everybody knows it’s authentic and made by us, made fresh every day. That’s what makes the difference.

“Customers are getting less and paying more at the chains. They’ve made their products smaller but increased the price, so they’re saving on the cost of ingredients but improving their margin by making things more expensive.

“The death of the pub and the declining spend on alcohol has also given rise to the growth of cafes. Alcohol is in massive decline.

"People used to go to the pub and have a pint but that doesn’t exist anymore. The spend that used to go into pubs is now spent on drinking coffee or tea.”

Steve Magnall, owner of Two Magpies Bakery (Image: Sonya Duncan)

COSTA COMPETITON 

Robbie Kirtley has owned the Rocket House Cafe on Cromer seafront since 2006.

He is opening his second cafe, The Rocket House Coffee Shop, in the town next month.

The Church Street coffee shop will be opposite a Costa Coffee. 

"It might be difficult but I honestly think people prefer independents to chains like Costa," he said. 

"Sales have been really good and hopefully it will continue at the new coffee shop.

Robbie Kirtley, the owner of The Rocket House Café at Cromer seafront (Image: Adam Barker)

"It's really important that the local community continue to support us as independents because we're the ones who have always been here. 

"It seems to be that these big franchises are coming into towns that are already doing well, but the only reason they're doing well is because the independents have put them on the map.

Robbie Kirtley, owner of the Rocket House Coffee Shop, which is set to open opposite a Costa Coffee in Cromer's Church Street next month (Image: Adam Barker)

"The most important thing is to keep independents in towns."