Could Coach Stir Retail with Gen Z Demand for Coffee Shops?

Coach’s latest venture may surprise some. The luxury brand is shifting to a market not many could have predicted: coffee. 

Owned by Tapestry Inc, Coach plans to launch more than 20 Coach Coffee Shops this year and executives say dozens more could follow.

With only three locations currently open, including one in Jakarta, Indonesia and two in the US (New Jersey and Texas), the move means its 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. 

Fashion meets food

Stuart Vevers, Coach’s Creative Director, developed the coffee shop concept in 2024, launching the first café in Jakarta alongside a full-service restaurant.

From there, it moved into US markets. These cafés come complete with everything from branded cakes shaped like the popular Tabby bag to napkins printed with a bespoke mascot, Lil Miss Jo. While the branding may seem playful, there’s a complex supply chain operating behind the scenes.

Managing fresh coffee and perishable food requires new sourcing networks, vendor relationships and real-time inventory control. This differs from Coach’s traditional supply chain — which centres on manufacturing, warehousing and distributing durable goods like leather bags.

Now, it’s coordinating suppliers of roasted coffee, milk, pastry ingredients and single-use packaging. The complexity grows further 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.

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

Targeting Gen Z 

The café rollout plays directly into changing consumer behaviour, 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.

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 behaviour is reshaping demand, so brands are responding with integrated experiences.

Ralph Lauren has followed a similar strategy for a decade, expanding Ralph’s Coffee to more than 30 locations globally.

That said, Coach is taking a slightly different route, focusing on outlet malls where competition is lighter and the audience more varied. It plans to open a location at Woodbury Commons, just outside New York, where it will go head-to-head with Ralph Lauren.

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. That means direct sourcing for coffee beans, responsible suppliers and seamless fulfilment across both fashion and food operations.

Expanding the brand footprint

Coach isn’t limiting itself to cafés. Its Coach Play spaces – 12 and counting – are localised, design-driven hubs built for interaction and personalisation. Meanwhile, Malaysia houses its Coach Airways store inside a grounded Boeing 747.

In Singapore, a second full-service restaurant opens 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.

Todd explains that Coach Coffee Shops provide a destination for what he calls “non-shoppers," those people accompanying others who don’t intend to buy anything.

“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.”

Alongside these commercial moves, Coach is doubling down on social impact by proving that it really does value ityounger consumers.

Earlier this year, 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 organisations like Bottom Line and The Opportunity Network to support under-resourced students through mentorship, financial aid and long-term 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.

So, while the coffee might be what draws people in, what Coach is really selling is access to luxury.