What Could Coach Coffee Shops Mean for Gen Z Retail?

Coach has began an unexpected chapter with the luxury brand, owned by Tapestry Inc, venturing into coffee.

This year, more than 20 Coach Coffee Shops are planned, with company leaders indicating more could soon join the list.

Only three locations are currently operational, one in Jakarta in Indonesia and two in the United States (New Jersey and Texas).

This step changes its supply chain, melding fashion retail with food service.

Fashion meets food

Stuart Vevers, Creative Director at Coach, introduced the coffee shop idea in 2024, inaugurating the first café in Jakarta alongside a restaurant.

Following this, the venture expanded to the US markets. These outlets go beyond offering coffee, featuring branded cakes modelled after the Tabby bag and napkins adorned with a specially designed mascot, Lil Miss Jo.

Though the brand imagery appears light-hearted, there is genuine complexity in managing the supply chain.

Handling fresh coffee and perishables demands innovative sourcing strategies, establishing vendor relationships, and real-time inventory management.

This is a departure from Coach’s traditional logistics, which deal with manufacturing and distributing items like leather bags.

Current operations include the coordination of suppliers for roasted coffee, milk, pastry components and packaging materials. Another layer of difficulty arises from exclusive café merchandise, such as mugs and totes, that achieve premium resales online.

“It’s not just a marketing initiative; it’s a commercial idea,” explains Coach CEO Todd Kahn.

Targeting Gen Z

The café rollout taps into evolving consumer trends, especially noticeable in Gen Z, whose preference leans towards immersive and shareable moments.

In Austin and Tinton Falls, café spaces connect directly with retail, giving younger buyers an affordable entry into the brand and more "linger" time.

Marcus Sanders, VP of Coach’s new Food and Beverage division, says: "It’s a lower price point, so there are younger consumers who are able to come more often and experience our brand, maybe through a strawberry matcha and also be able to hang out and think about us for their first purchase in the future."

Gen Z's behaviours alter what is in demand, leading brands to offer integrated experiences. Ralph Lauren has followed suit for over 10 years, growing Ralph’s Coffee into a global entity with more than 30 locations.

Coach, however, is on a unique path, focusing on outlet malls where competitor presence is minimal and the audience is diverse. It aims to establish a presence at Woodbury Commons near New York, creating direct competition with Ralph Lauren.

In addition to customer interactions, Gen Z expects sustainability, authenticity and digital innovation.

For the Coach’s coffee initiative to succeed, it must ensure quality in ingredients, sustainable packaging and a supply chain showing the brand’s commitment to sustainability.

This requires direct coffee bean sourcing, ethical suppliers and efficient delivery systems across fashion and culinary offerings.

Expanding the brand footprint

Coach’s expansion isn’t limited to cafés. Its Coach Play spaces, numbering 12, serve as tailored, design-focused hubs for interaction and customisation.

Malaysia hosts Coach Airways in a stationary Boeing 747, while Singapore will see another full-service restaurant debut at Changi Airport this year.

These initiatives demand specific merchandising, events, and logistics tailored to each concept.

Todd Kahn points out that Coach Coffee Shops target what he labels “non-shoppers," accompanying people who aren’t purchasing.

“Sometimes what happens in the real world is that the non-shoppers are taking up my limited seating in the footwear salon," he adds. "Now, I can move them to the coffee shop… where they’ll have a wonderful, compelling coffee experience while the actual shoppers get to spend more time in the store.”

On the social front, Coach is keen to back its focus on younger customers.

Earlier this year, the Coach Foundation pledged US$20m towards its Dream It Real programme, which aims to create 10,000 scholarships by 2030.

Partnering with organisations like Bottom Line and The Opportunity Network, it supports underprivileged students through mentorship, financial help, and extended guidance.

“These young people are achieving remarkable outcomes and we're committed to helping even more of the next generation realise their potential,” Todd concludes.

The coffee may initiate interest, but Coach is really offering an entrée into luxury.