How 200 Degrees caught the eye of Caffe Nero
The deal to sell Nottingham coffee roaster 200 Degrees to the Caffe Nero Group signals is one of those transactions that comes around every 12-15 years; a truly local success story, defined by the hard work of its founders and staff at every level.
However, this deal is perhaps even more remarkable than its predecessors in that 200 Degrees is – in the main – a hospitality business and operates in a sector that – just four short years ago – was on its knees.
So, how did Rob Darby, Tom Vincent, Stephen Fern and their impressive workforce emerge from Covid to build an empire that has stretched across the Midlands and north of England?
After establishing 200 Degrees in Nottingham in 2012 and building up its two coffee shops in the city, the firm’s owners ventured to Birmingham in March 2016 when they signed a lease on Colmore Row, in the heart of the Second City’s professional services quarter.
Fast-forward to December of that year, and 200 Degrees announced it was opening its fifth coffee shop in Leicester, on Market Street, having earlier that year opened in Leeds.
In February 2017, Darby and Vincent signed a funding deal with HSBC.
Darby said at the time: “Coffee shops are experiencing a renaissance at the moment, with a desire from both shoppers and professionals for high quality, fresh beverages and inspired menus. The financial support and mentoring from HSBC, coupled with our passion for roasting and sharing our love of coffee, is the perfect mix as we look to double the number of our coffee shops and add more barista schools with them.”
More investment was attracted throughout 2017 and by December, 200 Degrees signed a £3m deal with private equity firm Foresight in a move that it said would create up to 140 jobs.
Darby said that month: “We have this ambition to become the leading specialist coffee company in the UK.
“People are becoming more and more discerning about their coffee and will seek us out for the love and care we put into ours.”
By May 2018, a seventh site had been identified, on the hip Division Street in Sheffield, while further sites in Manchester and Lincoln were revealed over the 2018/19 winter.
By May 2019, 200 Degrees was announcing a new shop in Liverpool, followed later that year by a venue in the McArthurGlen East Midlands Designer Outlet as 2019 ended.
And then Covid hit. All of a sudden, the 200 Degrees was effectively closed as the UK went into lockdown in March 2020.
When restrictions lifted slightly, the company reopened its Carrington Street shop in May of that year, but its expansion plan had been dealt a powerful blow.
In June 2020, 200 Degrees admitted that it had shelved its expansion plans.
Darby said: “Whilst we’ve seen massive growth in the last number of years, a few sites we were in agreement on with landlords have all now been mothballed. We are not looking to expand now, just to get through this, come out the other side, and reach a point where we are trading profitably again. Once we’ve found the platform of stability, then hopefully we’ll continue our expansion in the future.”
By March of 2021, and with the second lockdown only just lifting, 200 Degrees made the decision to open its stalled Manchester coffee shop in The Hybrid Building, Mosley Street.
Vincent said: “It may seem a bit strange to open a coffee shop in a city full of great coffee shops at a time like this but we hope our independent feel and relaxed, comfortable style will add something memorable to the city.”
By now, though, 200 Degrees was back on track. In the same month that it opened its Manchester shop, the company announced a 14th site in York.
Vincent said at the time: “This shop should have been open last April but we’re finally here and we hope our independent attitude and relaxed way of doing things will add to this fantastic area as everything returns to normality, whatever that is.”
A second York site was revealed at the McArthurGlen Designer Outlet in September 2021, and in March 2022 the firm said it was opening a shop in Barnsley.
Two days later, 200 Degrees said it was set to open a third outlet in its hometown – its 17th shop just 10 years after setting up its roastery near the Victoria Centre on Milton Street.
Darby said at the time: “I am constantly blown away by the support we’ve had from the people of Nottingham. Having studied in Nottingham, going on to build a life and start a family here, the city has so many memories.
“It’s a privilege to build a thriving business and work with countless incredible people in a place that means so much to me. There seems no better way to celebrate 10 years of 200 Degrees than to open a third shop in the city where it all began.”
By July of that year there was no stopping 200 Degrees. That month it announced that it had taken on its 200th member of staff and by September it revealed it was opening in the Derbion shopping centre in Derby.
A new year saw finance boss Stephen Fern take on the job of CEO as Darby took a step back
Darby said: “Stephen has a deep understanding of 200 Degrees and has spent much time working in our shops and across all arms of the business. He has embedded himself not only in our operations but our culture too and is the right person to move into the managing director role, as we deliver our next stage of expansion.”
In the May of 2023, 200 Degrees revealed it was moving into the affluent Nottingham suburb of West Bridgford, ironically across the road from a Caffe Nero. The same week it had opened in Chester.
Last September, the firm said it was doubling up by opening its second Liverpool site on Bold Street, below Indian street food and craft beer venue Bundobust. The remarkable comeback from the depths of the first Covid lockdown was complete
When it was revealed that Darby, Vincent and Fern were in talks with Alix Partners earlier this year, it was perhaps only a matter of time before a deal such as the one announced yesterday with Caffe Nero became a reality. But for the trio – and their staff – it was testament to the company they’d built had be recognised by such a huge player in the their sector.
As Fern said: “We are thrilled that the strong market position and growth potential of 200 Degrees has been recognised within the sector, and we are excited to see where our brand can go now that we have become part of the Caffè Nero Group family.”