From Coffee to Care

How a cafe became one of the
Foundation’s most powerful
forces for good

For most of us, a cup of coffee is a small, everyday ritual.

Something familiar. Comforting. Routine. At The Prince Charles Hospital Foundation, those familiar moments have helped fund decades of medical research, improve patient experiences, and create a more sustainable future for healthcare.

The story began in November 1994, when the Foundation entered into an agreement with The Prince Charles Hospital to take over the operation and management of the hospital canteen. The goal was twofold: to improve the experience for staff, patients, and visitors, and to create a reliable source of income to support ongoing medical research.

What emerged was something ahead of its time –a social enterprise that was built on purpose as much as performance.

“A social enterprise is a business that exists to make a positive impact in the community, rather than maximising profit for owners or shareholders,” said Vince McFarlane, Chief Financial and Commercial Officer.

From the outset, the idea was simple. Every meal served, and every coffee brewed, would do more than nourish people passing through the hospital. It would strengthen the Foundation’s ability to make a lasting impact and complement donations received from the public.

“Surplus generated through our cafe and catering operations doesn’t disappear into the background. It contributes to life-changing and life-saving research, equipment and patient care programs aligned with our mission of helping people live healthier for longer,” said Jason Medok, General Manager of Social Enterprise.

The Foundation’s early transition into social enterprise operations represented a significant step change and, as expected, came with a steep learning curve. With a clear focus on building a sustainable and impactful revenue stream, steady improvements followed. Renovations included enhanced air conditioning, improved accessibility for people in wheelchairs, as well as food offerings with a larger salad and sandwich bar alongside a cake and dessert display. The canteen evolved into a welcoming space for patients, visitors, and staff alike–a small but meaningful refuge within a busy hospital environment.

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By the late 1990s, the impact was clear. In the 1998-1999 financial year, the cafeteria activities delivered more than 20% of the total surplus, strengthening the Foundation’s ability to support the hospital’s research program. Everyday purchases, repeated thousands of times, were contributing to extraordinary outcomes.

That success laid the foundation for what would come next. On July 1, 2000, The Breeze Café opened near the hospital’s Main Ward block, extending the Foundation’s vision and reinforcing the idea that food, community and philanthropy could work hand in hand.

Over time, the cafe became far more than a place to eat. It became a strategic pillar of the Foundation’s work.

In 2007-2008, there were almost 400,000 transactions at the cafe, made by a wide range of people -hospital staff grabbing coffee between shifts, families of patients seeking a moment of normality, and patients and visitors finding comfort in something familiar. Each interaction became an opportunity to connect people to the Foundation’s purpose.

The annual report from that year reads: “The net profit of The Breeze Café has grown 136% over the last six years. Additionally, the Café provides catering to hospitals and private sector businesses from as far away as Caboolture and Loganholme and out to Ipswich.”

Under long-time manager Ricardo Dawson, the cafe balanced service and mission with care–supporting customers while also contributing to medical research at a hospital where doctors, nurses and allied health staff care for people like you and me.

As health priorities evolved, so did the cafes. In 2008, the team adapted to Queensland Health’s “A Better Choice” strategy, reshaping menus and product presentation to encourage healthier choices.

Today, that early social enterprise vision has grown into an expansive and considered cafe portfolio, with the Foundation now operating a main cafe, a kiosk at the hospital entrance, and a coffee caravan located outside the Children’s and Emergency Department entrance.

Beyond The Prince Charles Hospital, there are also cafes at Caboolture Hospital and the Kedron Emergency Services Complex. The catering service continues to thrive and deliver fresh meals to businesses right across Brisbane. Today’s social enterprise offering is known as The Cafe for the Common Good and Catering for The Common Good.

What makes the model unique is not just its scale, but its values. The cafes and catering operations are built on strong partnerships with like-minded suppliers who share a commitment to quality, community, and purpose. One of those meaningful partnerships is with Merlo Coffee.

The Merlo family connection spans decades. Gino Merlo was a founding Board member of the Foundation, helping shape its early direction and values. Today, Merlo Coffee continues that legacy as a proud partner, supplying coffee across the Foundation’s cafe network and catering operations. It’s a partnership grounded in shared belief: that business can be a force for good.

“Since 2014, Merlo has backed The Prince Charles Hospital Foundation by supplying beans across sites, plus training, donations and hands-on support,” said Dean Merlo, Founder of Merlo Coffee.

“We’re grateful to be partners in work that genuinely changes lives. The Foundation turns everyday support into real outcomes, funding medical research, patient care initiatives, essential equipment and vital hospital needs for Queenslanders,” Dean explains.

In the 2025 Financial Year alone, the Foundation used 11.5 tons of Merlo Coffee beans with baristas brewing an astounding 143,181 flat whites, 132,484 cappuccinos and 93,283 lattes.

“What sets our model apart is the strength of our value-driven partnerships with like-minded suppliers,” said Jason.

“Our long-standing partnership with Merlo Coffee allows us to consistently deliver high-quality food and coffee through a commercially sustainable model, while also supporting outcomes that extend well beyond the café. We are grateful to partners like Merlo Coffee who play a critical role in making this model work.”

We’re grateful to be partners in work that genuinely changes lives. The Foundation turns everyday support into real outcomes, funding medical research, patient care initiatives, essential equipment and vital hospital needs for Queenslanders.

– Dean Merlo

Recognition for the Social Enterprise Model

The impact of this approach and its direct contribution to the community did not go unnoticed. The Cafe for the Common Good was proud to receive the 2020 Lord Mayor’s Business Award for Outstanding Social Enterprise, recognising the model’s commitment to excellence, sustainability, and community impact.

In 2022, a Queensland Government Social Enterprise Growth Grant was received which enabled the Foundation to expand its fresh food vending machines, providing nutritious options for staff and hospital visitors after hours.

As the Foundation marks 40 years, the cafe and catering businesses stand as a powerful reminder that impact doesn’t always look obvious. Sometimes it looks like a morning coffee before a long shift, a shared lunch during a difficult day, or a catered meeting that helps fund future breakthroughs. These small moments, repeated thousands of times, are quietly shaping better health outcomes.

This is the strength of social enterprise done well. It complements the generosity of the community, builds resilience, and ensures the Foundation can continue supporting world-class research and compassionate care, today and for decades to come.

Powering today, reinventing tomorrow – your support contributes to life-changing research and patient care initiatives. Donate today and help people live healthier for longer for the next 40 years and beyond.

 

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