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Competition for a slice of New Zealand’s coffee market is intensifying as an increasing number of franchise brands step into the country’s coffee shop landscape, aiming to capture customers from independent cafes, established chains, and global coffee giants. One such contender is the Black and White Coffee Cartel, which originated as a café in central Christchurch back in 2015 under the stewardship of Bink Bowler. Currently, it boasts 14 branches, including one in Auckland, with two more already operational in Ashburton and Timaru, and additional expansion plans for later this year.
Tony Yin, co-owner of the Black and White franchise along with partners, including former All Black member Reuben Thorne, expressed his vision of launching up to five new cafes annually. Following the acquisition of Bowler in mid-2020, the franchise set out on ambitious expansion goals. The pandemic initially hampered their growth, but they are now determined to regain lost ground. Yin emphasized their continued focus on the local New Zealand market, while also contemplating potential expansion into Australia, China, or Hong Kong in the next year or two.
In contrast, Sierra Cafe adopts a more cautious growth strategy. Beginning in Auckland’s Ponsonby area, it has since established 19 branches, including one on the North Island. Sierra stands out with its dedicated mobile app and intends to open additional stores in Auckland and Wellington, with plans to extend its presence into the South Island. Adrian Brown, Senior Operations Manager, explained that the company had considered a site in Christchurch before the pandemic, but the economic downturn led them to favor acquiring an existing cafe group.
Brown highlighted the benefits of close proximity between points of sale, facilitating resource sharing, supply management, and support. He characterized the competition in the cafe market as “intense,” with profits driven more by capital gains than straightforward sales. Challenges faced by both Black and White and Sierra include staffing issues, attracting and retaining younger clientele, and communities showing a preference for boutique eateries over branded cafes due to the flow of money.
These two contenders vie with well-established New Zealand franchises like Robert Harris, boasting 20 stores nationwide and selling a staggering 2.4 million cups of coffee annually, as well as Coffee Culture, which originated in Christchurch and currently operates 19 cafes, primarily in the Southern region of the island. The market also sees the presence of Australian chains such as Coffee Club with 63 franchised stores, Colombus Coffee with 75 franchised stores, Muffin Break (33 stores), Jamaica Blue, Gloria Jeans, and Hudsons (now owned by the Emirates Group). Other brands in the mix encompass PJs from the US, Esquires from Canada, and Illy from Italy.
