Q&A with Tim Schroeder, Founder of Hagen

Tim Schroeder is the founder of Hagen, a Danish coffee brand born out of Copenhagen and founded in London. Tim worked at Goldman Sachs from 2006 to 2011 in Investment Banking and Wealth Management in London.

1. How did you start your career at Goldman Sachs and what did you learn during your time here that helped you in the next phase(s) of your career? How have you leveraged your GS network since leaving the firm?
I started at GS in Investment Banking in London in 2006. I’ve worked at other places and even started my own company since then, but learned specifically from GS how a group of smart and highly motivated people makes decisions and does business. I learned how to be detail oriented, how to approach business analytically, and how to under promise and over deliver, which applies to many aspects of life and business. These are just a few of the many skills I acquired from GS that I have used in my career ever since. 

In terms of my GS network, it is incredibly special. There is a special bond between folks that landed their first jobs at GS and started their careers together. I’ve received great friends and a network for life and can confidently say that I utilize my GS network weekly in one way or another. 

2. About five years after you left the firm, you founded Hagen, a Danish coffee brand born out of Copenhagen and founded in London. Tell us about what inspired you to start the business and your journey from inception of the idea to now.
Before I founded Hagen, I had below average coffee experiences in New York and in London, although almost every catch-up or work conversation I had revolved around the drink. I found that only East London was serving anything decent at the time and there were very few premium coffee experiences outside the US. I hardly saw any pure play premium coffee brands in Europe offering a sense of occasion to the daily coffee experience which is what I wanted to create. To do this, I looked to scale the Michelin star approach and make it accessible to everybody. I anchored my brand in the premium end of the market with my Danish roots and sustainability which makes it unique. Scaling premium is not enough in my mind – it must be sustainable and give back to the communities we touch, which is at the core of everything that we do at Hagen. 

Part of the strategy and goals for Hagen was to build a loyalty program that has nothing to do with how much money customers spend in our bars, but rather how good of a person they are. Providing rewards for helping the communities we touch sounds like an uncommercial approach but allows people to get a sense of belonging and differentiated loyalty to Hagen. Ultimately, loyalty cannot be bought with stamps.  

3. How do you differentiate Hagen from other coffee brands on the market? What is your mission behind the business and how do you deliver on it?
Hagen is a newer category within coffee – as I mentioned, it is not only premium coffee at scale, but also sustainable. It sounds like a double oxymoron but is in fact working across 15 units in London and more to come. Many retail businesses mirror each other and optimize under similar constraints, only leaving a limited number of variables to change. At Hagen, we focus on removing variables and complexity by reducing unit sizing, staffing, and products. And we went even further: we design our bars firstly to maximize interaction and provide a sense of occasion. We don’t have menus on the walls, customer facing fridges, or merchandise displays. When you walk into Hagen, all you can see is the coffee machine bar with no distraction.

I am constantly thinking about: what do I want as a consumer and how can I make that consumer journey available to others that would enjoy it too? I am always strategizing about how to reduce what we sell in order to allow us to focus 100% on one thing: coffee. Execution needs to be super tight for the brand to survive competition and create a memorable experience for the consumer. 

4. What are you most proud of accomplishing since founding Hagen in 2017?
Professionally, I am proud of creating a space in a red ocean market where we’re identifying a change in the consumer and creating a product that’s consumer driven. Essentially, being successful without following the norm of an industry. I am also proud of our Kaffe Klub – turning loyalty upside down and rewarding people for doing good in the community rather than by how many Hagen coffees they buy. For example, customers can get unlimited free coffee for a month if they participate in one of our charity days where we help out at a local school.

Personally, I am proud of becoming a husband and father to three boys while starting my own business. 

5. As you look to the future, what are your ambitions for Hagen over the next few years?
I am always asking myself if I can expand Hagen into other areas. I would love to create a global experience and build the physical brand. My five-year plan includes coffee bars in cities globally in the best locations to keep the premium coffee label. Essentially, I am looking to help anchor the premium end of the coffee market. 

I am also looking for Hagen to become a fully sustainable company, which means minimizing our footprint across operations whilst maintaining quality and consumer experience. For example, we use glass bottles for delivery and have developed our own recycling system for them. Glass bottles also taste better, don’t spill, and save single use cups.