2 minutes reading time (337 words)

New Zealand Coffee V3.0


It has been over 5 years since I left the franchised coffee space, but I guess all that coffee consumed from over a decade in the industry and opening 70 cafes, somehow got in my bloodstream. I still keep an eye on what is happening from here in New Zealand to New York and in between and I have a view that we will see what I'm calling New Zealand Coffee Version 3.0 rise over the horizon in the near future.

What is V3.0?

V1.0 - Saw the emergence of local coffee roasters and the birth of a number of New Zealand coffee brands. It was cool, it was new and provided an alternate to the traditional New Zealand tea consuming behaviour. We saw the café scene grow which embodied Starbucks - The Third-Place concept.

V2.0 - Defined by the growth of the branded offering, whether through a roasting and distribution, company operated or franchise model. Local and a few international brands started to look dominant in the market and generally coffee was looking more and more like an ambiguous commodity. Cafes grew in size, fit out and operational costs grew, and the food offering became as or more important than the coffee itself.

V3.0 - Is on the way. What does it look like? There is a hint with a small number of New Zealand operators, but none have blended all the elements as yet.

A successful Coffee V3.0 operator will have all three distinct features

  1. A focus on coffee quality. A real focus, not just rhetoric and marketing
  2. Innovation hardwired. Utilising technology, which is not a gimmick, encompassing all aspects including the consumer interface, production processes and business management.
  3. A significant change in business format. It will be (or need to be to succeed), a low capital and low rental model which is capable of operating with a relatively low wage cost to revenue ratio.

And don't forget... the essential element to all successful businesses in the future, meeting social and environmental responsibility.   

Coffee V3.0 will deliver here too.

What's in view for 2020?
Local entrepreneurship alive and well in 2020!
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