The CEO of Barnie's Coffee Kitchen says the sales volume of food more than makes up for its low profit margin.
"Th e problem with the trade, historically, has been that food
has been incredibly gratuitous for coff ee shops," Smiga says. "It looks the part but tastes like crap." Th is extends to Starbucks, which got a lot of people
accustomed to coff eehouses in the fi rst place. "I think what we learned from Starbucks was watching what
they do and not doing it in a prepackaged manner, where it looks like a fi ne off ering of what you might see in a convenience store," says Wes Herman, owner of Th e Woods Coff ee, a 12-store chain based in Lyden, Wash. Another thing not to do is compete too directly, either
with Starbucks or with nearby restaurants, says foodservice consultant Aaron Allen. "People that are coming into independent coff eehouses are
choosing that coff eehouse as the alternative," Allen says. "Th ey don't want to be part of that conformist consumerism that Starbucks seems to represent. If we were consulting to an independent coff eehouse, the fi rst thing would be, don't try to copy Starbucks." It's also a mistake to try to compete with quick-service
restaurants or other places where food is the primary focus, Allen says. Some coff eehouses "try to copy casual dining restaurants versus
really looking at themselves as a distinct foodservice category," he says. "Th ey should have distinct foodservice off erings."
COMPLEMENTARY COMPETITION Sometimes nearby establishments can actually complement
a coff eehouse's operation. K. Dees Coff ee and Roasting Co. in Lafayette, Ind., serves only pastries, coff eecakes and bagels. "I never wanted to be a restaurant that sells coff ee," says
owner Gerald Kalal. "Always wanted to be a coff ee shop." He has a symbiotic relationship with a sandwich place across the street: "My customers know that they can go across the street and buy a sandwich and then come back here and eat it. Seems strange as hell, I know, but it really works well for both of our shops." One reason not to try to compete with other restaurants
is that most coff eehouses can't match restaurants in terms of cooking equipment or space. Nor should they. A typical coff eehouse will have relatively small, simple cooking equipment. When Frank Fiala opened 5th
second coff eehouse, he chose a location in Houghton, Mich. that had been offi ce space. Rather than lay in natural gas, he went with all-electric equipment, including an oven, roasters
January 2012 • www.specialty-coffee.com | 11
& Elm, his
