Luxury Brand Shifts Focus Into Coffee Market To Target Gen Z – CoffeeTalk

Coach, a luxury brand owned by Tapestry Inc, is shifting its focus to the coffee market, with plans to launch over 20 Coach Coffee Shops this year. With only three locations currently open, including one in Jakarta, Indonesia and two in the US (New Jersey and Texas), the supply chain will now straddle both fashion retail and food service. The motivation for Coach is a deeper engagement with its customers, particularly those from Gen Z, who will spend more time in-store.

The coffee shop concept was developed in 2024 by Stuart Vevers, Coach’s Creative Director, and has since expanded into US markets. The cafés come complete with everything from branded cakes shaped like the popular Tabby bag to napkins printed with a bespoke mascot, Lil Miss Jo. The complexity of the supply chain is further increased when adding in café-only merchandise like mugs, totes, and fashion items available exclusively in-store, many of which are now being resold at premium prices online.

The café rollout plays directly into changing consumer behavior, especially among Gen Z, as research shows their generation places high value on immersive, shareable experiences. In Austin and Tinton Falls, the café space connects directly with Coach retail, offering low-cost entry points for young customers and increased “linger” time for the brand. Coach is taking a slightly different route, focusing on outlet malls where competition is lighter and the audience more varied.

Beyond customer engagement, Gen Z also demands ethical sourcing, transparency, and digital integration. For Coach’s coffee venture to resonate, it must ensure quality ingredients, eco-friendly packaging, and a supply chain that reflects the brand’s sustainability values. This means direct sourcing for coffee beans, responsible suppliers, and seamless fulfillment across both fashion and food operations.

Coach is not limiting itself to cafés; its Coach Play spaces are localized, design-driven hubs built for interaction and personalization. Malaysia houses its Coach Airways store inside a grounded Boeing 747, and Singapore opens a second full-service restaurant at Changi Airport this year. These experiences demand unique merchandising, event planning, and a bespoke logistics network that can support each location’s distinct concept.

Alongside these commercial moves, Coach is doubling down on social impact by proving that it really does value younger consumers. The Coach Foundation announced a US$20m investment into its Dream It Real programme, aiming to fund 10,000 scholarships by 2030. It partners with organizations like Bottom Line and The Opportunity Network to support under-resourced students through mentorship, financial aid, and long-term guidance.

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