Bluestone Lane on bringing Aussie coffee to New York and the Koala Mafia

We’re living through a time where so many food, beverage and delivery services are struggling. Covid, the state of the global economy and continued cost of living pressures have forced many to shut up shop entirely across Melbourne and Sydney alone. But 16,000km away in New York, the Aussie-founded Bluestone Lane is going from strength to strength.

It doesn’t attribute this just to a cracking cup of coffee, but also to the community and how it makes people feel.

And this model certainly seems to be working, with 65 post-Covid stores under its belt as well as US$51 million in capital raised since opening in 2013.

Bluestone Lane focuses on connection more than coffee

“I didn’t want to build a coffee shop, I wanted to build a brand,” Nicholas Stone, the founder and CEO said over breakfast on a warm Tuesday morning in Tribeca.

A former AFL player turned New York financier, Stone didn’t have a background in hospitality.

But like many of us with a functional addiction to caffeine, he knew what he loved in a local coffee joint. And he just couldn’t find it in the city that never sleeps.

Back then Australian coffee culture hadn’t taken the trendy pockets of the city by storm. There were some attempts, but according to Stone they just weren’t the welcoming space he was looking for. Dark and reclaimed wood permeated with a sense of innate masculinity.

Sensing a gaping opportunity, he aimed to bring the lifestyle experience of the local Aussie cafe to the US, with a particular focus on service.

The cafe I’m sitting in, one of the many Stone and his brother Andrew have opened couldn’t be a more opposite aesthetic. 

Bright and open, it’s a mixture of Scandinavian and Australian architecture that has created a welcoming environment. 

“When I moved here I noticed that a lot of these specialty brands were emerging, whether it was in fitness, natural wines or different whiskies and spirits,” Stone said.

“I thought there just must be more people like my wife and I who love nothing more than going for a run and then grabbing a great coffee with friends.”

Stone also noticed an affinity towards local businesses, like people being loyal to a particular nail salon because of a personalised relationship with a beautician.

“I just thought that’s the way it’s gonna go. Coffee can’t be just this marginal product lead fulfilment transaction through the commercial success of Starbucks and Dunkin’ Donuts,” Stone said.

“They’re focused on convenience, not really getting to know you.”

This personalisation even extends to its app, which allows locals to order their own way, as well as offering more lifestyle incorporations such as wellness and mental health activities.

Speaking about Australia, Stone points out that the likes of Starbucks failed in the past.

“It is all about relationships because having good coffee is not a ticket to win in Australia, it’s a ticket to fly.”

“A winning strategy is focusing on the three core elements. Having a sincere personalised relationship where you’re a local, not a customer, having great coffee, and really interesting but accessible healthy food.

“And then obviously there’s the atmosphere, design elements, and the vibe.”

That vibe has extended to the marketing, which is entirely run in-house by Andrew Stone and an agency expert who has a slew of huge international campaigns under his belt. It was the perfect fit.

“We’re just building what we like — we were students of the profession, rather than coming with a more linear background. We’re unshackled and that’s quite liberating.”

But that doesn’t mean they don’t listen.

“We’ll take feedback all day long. We’re obsessed with learning from our locals.”

The Covid pivot

​​Of course, Covid changed everything. 

And Bluestone wasn’t immune. It had to close a bunch of stores.

But where so many other businesses folded under the extreme change in economic conditions and consumer behaviour, Bluestone survived. 

Like so many others, it pivoted to deliveries through the likes of Uber Eats which has remained a core part of the business even as life has returned to relative normality.

“For us delivery was a very small part of the business and then with Covid, it became like 60%. It remains really robust, like anywhere between 25 to 30%,” Stone said.

“It was something that we never thought was possible, especially given we were not pizza or chicken. We’re talking about coffee and avocado toast — we didn’t know how well it would travel. But sure enough, it does.”

It’s also gotten into homewares as well as roasting its own beans. While this venture started as a reaction to a growing demand for at-home capsules and coffee subscriptions, their beans are now award-winning.

They also had to rethink their locations when it came to scaling back up to 65 stores. Office life had changed and the business was over-exposed in commercial locations in midtown.

“We did have a very precarious footprint, so what we’ve had to do is pivot our portfolio to more urban residential and suburban areas, primarily commuter towns where a lot of people would traditionally come into the city for work,” Stone said.

“Now what we’re finding is that families and couples are coming in on a Monday, Friday and the weekend.”

The Koala Mafia

“It’s the best city in the world, but it’s not easy,” Stone says of New York.

“Isolation, mental health and loneliness are such things for people here.”

But one thing that makes it easier is community, and Aussie businesses have a huge representation in the city. And the tall poppies aren’t cut down.

“I think you’ll find that in a lot of international communities honestly, that expats sort of rally around each other.”

“In the case of hospitality businesses, Australians are looking for that taste of home, that sense of reminder of where they came from.”

“It’s a koala mafia.”

Stone has found that Aussie businesses are supportive of Bluestone and Bluestone is supportive of them. This has even extended to business relationships.

Bluestone has engaged in collaborations with the likes of Cotton On and Frankies Bikinis out of its Montauk store.

“That reciprocity is really special… and honestly the network’s pretty incredible. It’s just a great resource to help if you’ve got questions.”

Stone says that Bluestone Lane has become a mentor for up-and-comers and he makes a point of making himself available to help.

“Ultimately, like what we’re trying to do is grow the market… all boats rise with the tide.”

At Bluestone Lane, the idea of community has extended beyond the customer experience to become the cornerstone of the entire business.

“What we need to do is educate everybody and get them on a journey about the importance of human connection, quality coffee, and healthy food.”

The author travelled to New York as a guest of Uber.