One of the most common entrepreneurial fantasies is to start a
coffeehouse, to brew the best java while the cast of Friends
sips and chats for hours on plush sofas. But with Starbucks on
practically every corner, is it still possible for smaller outfits
to be successful?
Absolutely, claims Bruce Milletto, president of Bellissimo Coffee
Info-Group, a coffee business consulting firm in Eugene,
Oregon. According to Milletto, the keys to success in the coffee
business lie in stellar customer service and great ambience, in
addition to a high-quality product. "It's not about the
coffee; it's about the break," he explains.
"That's why so many [coffeehouses] exist--they're
social meeting places."
Creating a community meeting place was one motivating factor for
Ellen Heller-Leo, 48, who launched Mother Earth Coffee Co. in Park
Ridge, Illinois, in June 2002. Complete with mahogany décor
and a piano, Heller-Leo's shop attracts the Chicago elite
(mayor Richard Daley is a regular customer) and local college
students alike.
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What sets Mother Earth apart from other coffeehouses is
Heller-Leo's commitment to give 10 percent of profits to
charity. "You're helping people through your business. If
everybody did this, then everyone would be taken care of," she
says. With sales at about $1 million and agreements in place with
investors and local officials, Heller-Leo envisions opening upwards
of 200 locations in the next three years.
A unique element is needed to ensure success for coffeehouse
entrepreneurs. Case in point: Jack Kelly, founder, and Bob Ohly,
vice president, of Caffe Ladro in Seattle. With seven stores operating in
the Seattle area, Kelly and Ohly, both 38, built their concept with
a special focus on bakeries located in each store to create the
myriad pastries, cinnamon rolls and muffins that complement the
coffee.
Then there's the Fair Trade coffee that Caffe Ladro uses
exclusively in its coffee blends. Fair Trade coffee is inspected by
a third party to ensure that the coffee farmers and roasters are
paid a fair price for their coffee beans and that the laborers have
sustainable farms. "If a farmer is getting ripped off,"
says Kelly, "it's not cool that we're making money off
of that." Though it's a bit more expensive, Fair Trade
coffee has brewed Caffe Ladro's sales to a robust $3 million in
2002.
Martin Mayorga actually started on the roasting side of the
coffee business, with Mayorga Coffee Roasters Inc. in Rockville,
Maryland. Mayorga and his wife, Kerry Allen Mayorga, both 29,
founded the company in 1998. With a family background in the coffee
industry, Martin grew up in Latin America and experienced the
coffee-growing process firsthand. Focusing on specialty imported
coffee beans, Martin notes, "You have to educate your
customers about shade-grown coffee, specialty coffees, etc., before
you can sell them anything."
The Mayorgas are getting ready to open a 6,200-square-foot
lounge for roasting and drinking coffee. Martin likens it to a
microbrewery--it will be a place where people can relax and drink
specialty coffees while they watch the entire roasting process.
With sales of $1.4 million, Martin says he hopes to open three
to five stores in the near future and have them all be family-run.
To other aspiring entrepreneurs, he offers this advice:
"It's a competitive business. To have a long-term future,
you have to offer something a cut above everything else [that's
out there]."