Tesco Backed 'Artisan' Coffee Chain

When it comes to coffee shops North London's Crouch End has it's fair share, but new arrival 'Harris and Hoole' has sparked controversy. The branch which also has stores in Amersham, Uxbridge, Ruislip and Southgate is up to 49% owned by the high-street giant Tesco.

The coffee industry is lucrative, last year Costa Coffee made £36.1million pre-tax profits. It is a well known fact that Tesco make £1 out of every £8 spent on the high-street and the organisation already have brand extensions including banking, clothing. dvd rentals, electronics and mobile phones. Tesco's ever-increasing power in the marketplace is what is making people unhappy about the coffee shop.

In reality, Harris and Hoole is family-owned by Australian siblings Nick, Laura and Andrew Tolley. The family own the majority of shares in the business and have total control over the way it is run. Tesco invested in the venture and have no say in the business strategy. Unfortunately, the association with Tesco has not done Harris and Hoole's reputation any favours and has resulted in extensive negative media coverage. The next few months will show if this is enough to put people off the chain or if it will thrive as well as the other high-street coffee chains.