year, to $11.9 billion by 2026 – with coffee-related businesses repositioning themselves to capitalise on rising demand for premium food. Further, Australian Bureau of Statistics data showed that the dining and restaurant industry has remained resilient to financial pressures. This provides opportunities for speciality coffee retailers such as Padre Coffee, which can capitalise on this continued demand. With hybrid cafe and retail spaces and roasters located across Melbourne and Noosa, the brand is opening a new concept store in Paddington, in Sydney’s eastern suburbs. Set to open in June this year, the store will feature an espresso bar, a retail section with espresso blends and home-brewing equipment, and a dedicated coffee training and education space. It will also host educational and interactive events targeting customers who want to learn more about the bean-to-cup experience. Coffee Journey Ben White, head of Padre Coffee NSW, told Inside Retail that the new store represents a natural progression for the brand. While many NSW coffee roasters are located in the western suburbs, he said the brand opted to open in Paddington to set itself apart from competitors, while also targeting the inner city and eastern suburbs. He said that the new store would offer a similar look and feel to Padre’s other venues. “​​We’re really happy to have found this spot which is in a beautiful building, and has a big space for our retail products. It will also have a big focus on training and education as well,” White said.  “Padre Coffee has a strong focus on ethical and sustainable sourcing habits and – from a retail store perspective – all of our staff are equipped with tools to be really knowledgeable in sharing our coffee story. “For people who are new to coffee, or who want to learn more, they can take them on their coffee journey as well.”  White explained that Padre Coffee saw a big uptick in e-commerce sales following the Covid-19 pandemic, and is steadily growing its wholesale business. He noted that NSW was a particularly attractive proposition as it supplies beans to about 12 cafes across Sydney, the Illawarra and the South Coast. He believes that its presence on the ground would help to bring in more wholesale customers. Padre Coffee also delivers to about 6,000 homes a year via its online store.  White added that household pressures have led to a substantial uptick in the sale of high-end domestic coffee machines, which is an area that the brand is looking to expand. “Instead of people going out and buying two or three cups a day, they’re maybe having one cup out a day, and investing in a really good home setup. [They can] produce something similar to what they’re experiencing in our stores at home,” he said. “Customers have higher expectations around the quality and experience of the coffee they’re drinking, because they are purchasing beans and developing an understanding of what they like.” He added that people are getting into home brewing as a way to cut costs, which is a positive thing for the brand. “Maybe they are only coming in for one cup of coffee, but they’re also getting a bag of coffee to take home,” he said. “We’ve also noticed that the demand is still really strong for coffee, because people view it as an affordable luxury for now. It is becoming more expensive, but the people who are engaged in speciality coffee will find space in their budget for it.  “It’s just breaking down how many they’re having at a cafe, and how many they’re having at home.” Point of difference National coffee manager at commercial kitchen equipment company Silverchef, Lorenzo Inserra agrees with the assessment that customers are still wanting to spend on speciality coffee. He told Inside Retail that if customers are going to spend $5 on a cup of coffee, they want to have the best coffee they can possibly get. “We’re finding that smaller specialty coffee [businesses] are having more impact in the hospitality space,” Inserra said. “Café owners are looking at a point of difference and – though they might pay more for their coffee – having a specialty roaster will hopefully drive business for them,” Inserra said. Prior to the Covid-19 pandemic and consecutive interest rate rises, he said that certain customers were open to buying three or four cups of coffee each day. However, with cost of living pressures, he believes that many of these customers are cutting back, or are buying speciality coffee beans and making a brew at home. “I believe volume has dropped a bit at cafe level. There’s still a market for the 7-Eleven, $2 coffee. [But] if a customer wants to go out, they want to have an experience, and receive bang for their buck,” Inserra said. He added that the top performing cafes and roasters are sourcing high quality beans, and are investing in training and equipment. He also believes that some café owners are looking for ways to save rather than make money, which can be detrimental for their business. “You get what you pay for with anything but, especially with coffee, if you drop by $5 a kilo, you won’t get the best bang for your buck,” he said. “There’s opportunities for any roaster in any state [provided] they have a point of difference, and a value proposition.” Future plans Regarding Padre Coffee’s plans moving forward, White said that the focus is on building the Sydney store, and developing strong ties with the local community. He added that the brand is looking to create a base for new and existing wholesale customers to learn more about its products.   “We’re really excited about educating consumers [about] products they might not have experienced before,” White said. “It’s been​ a really big project for us [and] it’s amazing to see it come to life.”