“I am confident that our Fairtrade beans are well placed in the market. I’d happily put our coffee up against any of the big”
Penny Manuel - Soho Coffee MD
After falling in love with the SOHO Coffee Co., Penny Manuel and her business partner bought the lucrative chain from Superdry founder Julian Dunkerton. Five years on, Penny Manuel reveals the honest truth about becoming an entrepreneur and why SOHO’s coffee will always come first.
Penny Manuel always considered herself to be a cautious individual. That was until SOHO Coffee Co. came into her life.
The coffee chain, founded by Superdry owner Julian Dunkerton, was up for sale in 2006. Dunkerton reportedly set up the network of coffee shops after failing to find a decent cup of coffee in Cheltenham. For Manuel and her business partner Chris Copland, formerly at catering giant Compass, this was the business they had been waiting for.
'As soon as we saw SOHO, we fell in love with it,' laughs Manuel. 'The brand is quite bohemian and vibrant. It’s far more of a retail brand than the traditional corner café brands.
'It was also a clever proposition because the name clearly gets across that we are serious about coffee but then everything else like the merchandising shows that we mean business with the food as well.'
But for mother-of-two Manuel, the opportunity also meant becoming an entrepreneur. Something she had never conceived of before. 'I'd like to say I had a detailed life plan, but the truth is I fell into it (the purchase of SOHO). At heart, I have always been a cautious individual and spent many years ensuring the mortgage was paid each month, but then I got to point where I had spent so long working for others that I thought surely I could do this for myself.'
'I have always been a cautious individual and spent many years ensuring the mortgage was paid each month, but then I got to point where I had spent so long working for others that I thought surely I could do this for myself'
With the sale behind them, Manuel and Copland's background in arranging concessions and franchises for motorway services and airports came to the fore as they began to expand the business into new areas. Since taking on SOHO, they have increased the number of stores from four to 21 units in the last five years and set up in Ireland, Wales and even as far as Las Palmas and Spain. But it hasn't been an easy journey.
'It's always a bit of a challenge to take on a business that has been already been started and has great personality, but then get it into a shape where you can roll it out without losing any of its appeal,' admits Manuel, who was recently awarded the 'Women of the Year' title by The Citizen and Gloucestershire Echo’s Women in Business awards 2011. 'We wanted to maintain that regional individual feel in each of our stores - that's very important to us.'
So, what sets apart SOHO Coffee Club from the other coffee chains that dominate the high street? 'We're fresh, quick service and we're quality,' proudly states Manuel. Everything is centred around the 'lovely' coffee, which although imported, is roasted and ground by Greenhills Coffee of the Forest of the Dean.
'I am confident that our Fairtrade beans are well placed in the market. I'd happily put our coffee up against any of the big boys,' she laughs.
And having worked in the catering and hospitality industries for the last 20 years, Manuel certainly knows her stuff. Although being an entrepreneur is still new territory.
'I worked in the corporate environment for a long time so it does become a bit ingrained in you. I am constantly asking myself 'are you doing that just because you’ve always done it or do you think it will add value?''
But working for yourself also has it's own ups and downs, admits Manuel. The main difference is that 'you live and breathe the business'. She's also learnt some valuable lessons along the way, especially about being cautious.
'Truthfully, you can fear failure everyday of your life, and yes I do still worry about the next mortgage payment, but I also like to get things right so it would be terrible for me if the business did fail.'
With the UK facing one of the worst recessions ever recorded, Manuel notes the number of small businesses folding down every high street. Which is why, at its heart SOHO has a robust financial model.
'Chris is very analytical - he is financially oriented and deals with the financial aspects of the business and the site finding. While my role focuses on operations and marketing. I deal very heavily with the franchise businesses.'
'I am confident that our Fairtrade beans are well placed in the market. I’d happily put our coffee up against any of the big boys'
That's the other thing that sets SOHO apart from the large international chains. The chain has a mix of directly managed stores and franchise partners, but more importantly the management team at the top know all the people on the ground.
'Our partners who work in the franchise units know who the brand is owned by - they know me, and they know why this business is important to us. That's personal involvement – they understand why we are doing things.'
Manuel and her team are working hard to develop more franchise relationships - the next is set to open in Edinburgh shortly - and with more planned there's no time to rest.
But for Manuel, much of this journey has also been about learning about herself. 'My advice to aspiring entrepreneurs is to learn from mistakes, learn quickly and move on. Be true to your proposition and be absolutely sure you remember this at all times.' For someone who wasn’t sure of her entrepreneurial qualities, Manuel has it in abundance.