“We saw an opportunity”: The plan behind BWS’ Coffee shop

Last week, Endeavour Group’s BWS tried its hand at a new frontier: serving piping hot coffee for its Devonport, Tasmania customers.The business’ Gateway Drive store is the first in BWS’ new Double Shot drive-thru sites, created in partnership with local coffee firm Oasis Griffiths Group, and aims to take advantage of the store’s four-lane drive-thru facilities.It also allows the team at BWS to work with experts in a different field to bring a new offer to life: one that BWS couldn’t do on its own.“We’re experts in speed and convenience, and managing drive-thrus and satisfying customer needs,” BWS managing director Scott Davidson explained to Inside Retail.“[Oasis Griffiths Group] are the experts in coffee, and so I think the partnership component is really important.”According to Davidson, the store, which has been open for a little over a week, has seen significant support from locals and Tasmanian travellers alike, and is the latest example of BWS’ willingness to play with the format of its stores. Espresso, expressUsually, when BWS trials a new offer at a store, it tends to focus on a particular product type: such as their craft beer-focussed store at Mount Hawthorn, Western Australia, and their wine-focused store in Sorrento, Victoria.The Double Shot store, however, is an attempt to try something new. The goal is to widen the store’s use to the community, and deliver a different type of product for a different time of day.“We saw an opportunity with coffee: it’s made for a different time of day [than alcohol], and is a utilisation of our [store] asset,” Davidson explained. “Plus, it’s a very new category [for BWS], is highly incremental, and could drive awareness for the services we provide, particularly our drive-thru offer.”This convenience, Davidson argued, is what separates BWS from its Endeavour Group stablemate Dan Murphy\’s. Whereas Dan Murphy’s is more about exploring and discovering new products within the alcoholic range, BWS is focused on delivering fast and convenient service to its customers. In that way, it is an obvious extension to the offer.“We think coffee is a good opportunity, and we know there’s growth in that segment. We’ve got plenty of space [across 235 drive-thru stores] to utilise, and this concept really came about by looking at our business strategically and recognising what opportunities there are,” Davidson said. “Many retailers are focusing on closing stores to shrink their labour, but what we want to do is maximise the value of our asset, and maximise the use of our licences.”While Davidson didn’t specify where the next Double Shot format store would open, BWS has said that it will roll the concept out further in the coming months.Culture of convenienceSpeed and convenience have become incredibly important for many players within the food and beverage space, with the Covid-19 pandemic changing where and how people  buy their meals.For BWS, its drive-thru stores have become the fastest growing format within the business, and signal a greater shift toward giving the customer what they want, when they want it, and as soon as they can. “It was actually really interesting to watch customers move out of shopping centre stores and move toward our convenience formats,” Davidson said. “Our portfolio gives us that hedge as customers\’ behaviours change, and as speed and convenience is a huge trend, I think we’re in a good position.”