RAW Coffee
HOME-GROWN SUCCESS STORY
RAW Coffee Company
Year of establishment: June 2007
Names of co-founders: Kim Thompson and Matt Toogood
About the brand: RAW originally started out after noticing a gap in the UAE market for locally roasted fresh specialty grade coffee. Sourcing premium green beans from around the world, RAW selected the niche market looking for quality. Its beans are ethically sourced and the farmers and their families growing RAW’s coffee are treated fairly, making a sustainable living. RAW artisan roasts in small batches and have samples at its warehouse roastery and espresso bar for tasting and also purchasing either as single origins or blends. RAW also supports and trains the baristas and helps commercial café partners to have viable profitable businesses.
Commercial success: RAW is owner-operated and self-financed, with both Thompson and Toogood working in the business, as well as on the business. Significant milestones over the 12 years include winning national and international barista titles and becoming a DXBTOP100 SME. On the other hand, the real commercial successes are the increased kilos of roasted coffee bags delivered to the growing commercial and domestic customers in the UAE and GCC, while strengthening its supply chain now by purchasing containers, not pallets of coffee. Importantly, RAW has been able to recruit some very skilled senior management, helping the brand to scale and professionalise the company.
Phased business transformation: With a detailed five-year business plan, RAW entered 2020 with a foot on the accelerator. It has the people, stock and skills to scale, and has moved into its purpose-built industrial warehouse. RAW is now able to offer caféstyle food. It has in place a strategic growth plan for Saudi Arabia with an existing customer base and plans to set up a facility there. However, the current situation has meant RAW has had to move entirely to an online ordering/delivery of fresh bags of coffee to home connoisseurs as only 7% of its commercial customers have remained open. RAW has purchased the required green beans for this season, therein poised to supply and support its customers when they open. But owing to readjustment within the F&B sector, RAW feels a number of brands may not be able to survive the crisis.
Major hurdles crossed: A major hurdle for RAW is having no investor and being underfinanced for major part of its early years. The co-founders’ biggest milestone was when they reached the point of paying salaries and rent and covering all overheads to run the company. Then they could purchase more stock and employ senior people in management roles. With the current situation, and the fact that RAW has no debt or investors expecting returns, the home-grown brand is in a strong position to trade and survive.