Bacha Coffee, managed by TWG Tea’s parent company V3 Gourmet, is betting big on its global strategy, injecting €20 million (US$22.2 million) into its 1500sqm Champs-Élysées store slated to open later this year. The store “is one of a few strategic destinations planned for Europe in the next three years,” Maranda Barnes, chief commercial officer of V3 Gourmet, told Inside Retail. Rapid expansion The announcement of the opening of the Champs-Élysées store follows the
lows the launch of the Bacha Coffee boutique at the Ritz Paris in 2022.
“Europe has always been a cornerstone of our global expansion strategy and we had our sights on France since we relaunched the brand in 2019,” said Barnes. “Europe is an exciting market because of how deeply embedded coffee is in its culture.”
Bacha Coffee has simultaneously expanded its presence in key markets to increase market shares. In less than two years, the company entered a number of Asian countries, including Hong Kong, Malaysia, Indonesia, Taiwan, and South Korea. The brand is also planning its first store in Japan.
The coffee chain increased the number of its stores from nine in 2022 to 24 locations worldwide across 11 countries in North Africa, Europe, the Middle East and Asia.
The executive said the company used the time during the pandemic to chart a course to an aggressive expansion once the world opened again.
“Our CEO Taha Bouqdib signed a lease for The Arch, our largest and most exceptional location to date at Changi International Airport at Terminal 3, when the airport was literally empty, and travelling to Hong Kong to secure locations there when air travel had all but stopped,” Barnes said.
The company focused on renovating a number of locations until the airports and the world slowly opened.
“By then, we had strengthened our back end and prepared ourselves [for] when customers started to go out again,” Barnes said.
The company’s strategic initiatives yielded positive financial outcomes in the previous fiscal year, with reported annual revenue reaching US$95.5 million and a post-tax profit of $2.2 million.
Supply chain and logistics challenges
Rapid global expansion poses significant challenges for brands in managing their supply chain and logistics operations effectively. Bacha Coffee is no exception.
“Upholding the consistent quality as well as availability of our coffees on a global scale is always challenging since we source directly, from sometimes very small family farms, in remote regions around the world,” Barnes said, adding that maintaining these relationships is extremely important to the brand, especially as its touchpoints increase globally.
“Quality roasting in locations adjacent to our points of sale also is essential.”
Bacha Coffee established a €10 million production facility in Marrakech spanning 1000sqm and will fulfil demand in new and upcoming markets like the Middle East, the US and Europe.
Barnes said plans for additional R&D and roasting facilities in other locations are also in motion. Bacha Coffee plans to establish factories in the US and China as well.
Bigger ambitions
Bacha Coffee’s global expansion is just beginning.
Barnes said the company is poised for greater growth next year, with locations set to open in new markets including Tokyo, Macau, Saudi Arabia and Tangier, Morocco. Region-exclusive highlights are also in the works for upcoming openings.
“By 2030, Bacha Coffee aims to have a presence in all the major capitals of the world,” she concluded.