Coffee is more than just a drink! How do social enterprises and the coffee industry complement each other?

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According to the Financial Times, 1/3 of startups are now trying to incorporate positive social impacts into their business models. The same article points out that in 2018 in the UK alone, 99000 social enterprises employed 1.44 million people, each working for a cause beyond economic interests. Today's entrepreneurs also realize that doing good deeds and benefits can complement each other, and the coffee industry is no exception.

The essence of the third wave of coffee movement lies in the transparency of producing areas and purchasing ethics. Consumers want to understand the entire supply chain, and the cup of coffee they drink is not only good, but also has the meaning of social responsibility.

In this article, let's take a look at how social enterprises have become a model in the coffee industry.

What is a social enterprise?

Social enterprise is an organization that combines profit and social responsibility, and applies commercial power to maximize financial, social and environmental welfare. An efficient social enterprise cannot separate influence from profitability, so it is also called "purposeful profit".

This business model is different from the "corporate social responsibility" in the business world, which makes a profit first and then makes a social responsibility. Ted Rosner, co-founder of Redemption Roasters, a social enterprise, says the company will teach inmates the skills of baking beans and baristas. "if a company only wants to do a good job in public welfare, it may at best be a charity rather than a social enterprise," he said. "I think social enterprises, regardless of profits, must closely link profitability with social responsibility. and this should not be just a short-term goal. "

Social Enterprise to Coffee

There are not a few coffee shops based on social enterprises, but there are other business models that can combine coffee with social enterprises. Old Spike Roastery, founded in London in 2015, provides a training platform for coffee roasting to street people, offers jobs to these people and helps them find a house to live in.

London-based Redemption Roasters was created when the Department of Justice contacted co-founders Max Dubiel and Ted Rosner, and Redemption means redemption. They are required to provide barista training courses in prison. Max recommends that an industrial-scale coffee dryer and training centre be installed in HMYOI, a prison for offenders between the ages of 18 and 20, to provide young offenders with more assistance in the coffee supply chain and practical work skills.

Marcus Wood, the chief bean baker here, says he bakes 1.5 tons of raw beans here every week. His role is to bake coffee while training future bean bakers. "I enjoy being able to instill enthusiasm every day and immerse myself in the spirit of fresh coffee," he said. "

Involved in baking, packaging and putting coffee on shelves, the baking company also has its own coffee shop, many training centres in the UK, and training programs for baristas.

How can social enterprises make a profit?

The biggest difference between social enterprises and charities is that the self-sufficient business model makes social enterprises more dynamic and resilient. Through business practices, social enterprises can donate independently to those in need in a way different from that of charities.

Purposeful profit can also make your business model more competitive than a purely profit-oriented business model, especially in a saturated market like coffee, where corporate social responsibility is not just a marketing point, but an issue that customers are increasingly concerned about.

According to the 2019 millennial survey conducted by Deloitte, "in general, millennials and Generation Z patronize and support companies that meet their values; many people say that when they disagree with the company's business practices, values or political inclinations, they will not hesitate to reduce or end the relationship. "

Since its inception, Redemption Roasters has expanded to include HMYOI industrial-scale baking and training centres, as well as HMP Bullingdon Prison, Spring Hill, Wormwood Scrubs Coffee Academy and non-imprisoned prisoners Coffee School, whose profit success is directly related to its social initiatives.

"it may be humiliating to hire someone who used to be a criminal, but the response from customers is very positive," says Max. After all, the company's name Redemption means redemption in Chinese. "

The starting point comes from a fascinating story of positive emotions, in which customers and cooperative companies not only experience high-quality boutique coffee, but also are satisfied with their choices as consumers. When full-time employees go to work, they feel that they are earning more than just a salary, and investors also see that their money is having a quantifiable social impact.

How can social enterprises improve their lives?

As a company must be profitable, social enterprises also measure the success of their operations in the traditional way, including interest rates and growth rates. But social enterprises can also assess their social impact as a measure of success.

Participants in Redemption's Aylesbury project said: "when I get up every morning, I'm happy to be able to go to work. I've never looked for a job before, and I've never had such a job. But when I came here, I even forgot that I had been serving my sentence in prison. It feels like being on the way out of prison instead of being tied up by a long prison day. "

Redemption Roasters helps prisoners find jobs related to the coffee industry after they get out of prison, usually opening their own coffee shops. In addition to increasing the relevant experience of prisoners, the organization now has four coffee shops. In the process of expansion, the company will be able to train more people, attract more investment, help reduce discipline for prisoners to go back to prison, sell more coffee and increase profits.

Social enterprises do not use humanitarianism for sales purposes, nor is it a non-profit charity. On the contrary, it is a mutually beneficial relationship that creates real change in the context of capitalism. Therefore, when choosing where to enjoy coffee or buy coffee beans, we can consider whether the company is operating for social purposes.

Translated from Perfect Daily Grind

Translated by Cheng Zhen Coffee

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