As someone that is still very new to the specialty coffee world, I will admit that I was recently of the naive mindset that is (arguably) shared by the masses when it comes to quality coffee, and am attempting to throw in my 2 cents on the topic in the following.

I believe we can credit Sbux with educating the masses to some degree with their limited menu of specialty coffee products. Thanks to them, many Americans know what a latte is and could probably even name a few other espresso-based beverages. However, I don't believe the masses are yet at the point in their education and understanding of coffee where they discriminate much between options, and when in doubt, go with the brand name they feel they can trust from experience. My contention is that people are creatures of habit and find familiarity comforting, and this applies to buying coffee in much the same way as the concept applies to spending time with close friends. Undoubtedly, marketing and the powerful position of being the single national chain in the US have had a lot to do with getting people to create/maintain the habit of frequenting their shops.

What I'm trying to say is that education is the missing link. If most people knew of some of the nuances that are commonplace discussion items in the BX forum, I'm willing to wager that they would frown on the corporate coffee establishments because they would know that quality is not their focus as evidenced by their superautomatic machines, their having to close many shops due to the oversaturation of different locations, their stores' lack of soul and passion for delivering the best possible products, etc.

The question then becomes, how best to educate the coffee-loving masses who opt for a cup of their familiar Dunkin Donuts, Sbux, or Caribou Coffee instead of their friendly neighborhood independent shop?

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From experience, trying to educate the coffee masses is a daunting task. It takes time, dedication, a passion for quality, a thick skin, and the knowledge that you might not make money at it for a while. That last part is the toughest thing for most new coffee shop owners to face, and why it is so much more appealing to piggy-back off of Starbucks clientele by offering a similar product (dessert drinks, dark roasts). This works in the short term because people can come in and feel a sigh of relief because they know exactly what to expect, and you can have a quick turn-around and profit. Unfortunately, if people want the Starbucks experience, they're still going to go back to Starbucks. The beauty of high quality, specialty coffee is that it is a special niche. Once you build a clientele that comes to you especially for your quality, chances are you won't lose them again to Starbucks. There may be 50 coffee shops in your town, but you might be the only one where you can get a truly inspired cup. The most important thing is, as you said, education, and that starts with people actually tasting great coffee. Hold public cuppings, slurp with people. Talk about single origin coffees and farms and why they're so special. Use phrases like "floral, apricot, bergamot, and chocolate" to describe your coffees instead of the vague stand-bys of bold, medium, or mild. Most importantly show an unwavering passion for coffee and what makes it great. Passion is contagious. Chances are, the first time you make that straight espresso for a person, it will shock them, they may not even like it, but in my experience if you can get excited about it and describe its beauty in detail, people will try it again, and eventually they'll love it. The biggest competitive advantage the neighborhood shop has is its passion, (followed closely by the fact that the competition most likely has very bad coffee) so don't be afraid to break new ground, always stay consistent, always maintain high quality, always educate others and yourself, and when you feel like you're at your breaking point, go visit stumptown, intelligentsia, ritual, counter culture, octane, or any number of great places that have shaken coffee up in their local area by way of quality and education. Finally, you can't win em all. It sucks, but it's true. Some people will drink bad coffee forever and that is their right.
Jeremy, thank you. Your response was very thoughtful and encouraging.

I've made up my mind about the shop. I'm going for it. It's going to be another couple of years, but every day between now and then I'll be doing my homework, learning, experimenting, gaining experience..

I know I'll have the support I need from my wife, from friends and from family. With a little faith, I'm more confident every day that I'll be happy spending the rest of my life perfecting this craft.
It is my experience that education seems to be a hot-button topic around these parts.

It seems that we are all generally in agreement that consumers who are aware of the range of coffee products that exist will consistently choose the highest quality product, and that the highest quality product is the product that we provide.

The issue is growing that awareness, right? And that's the rub. the starbucks model of marketing seems to be out of reach for a number of reasons, and we are left with a somewhat educated public - but not as well educated as we'd like. The quiet assumption being that with education comes a preference for our product, I think.

So how do we do that? One possibility is focusing on our own shops, creating the best possible product, and letting the coffee speak for itself. I think that this is an important component of our future, but we need a bigger plan, some kind of comprehensive path our part of the industry can take together.

(I don't have that plan, FWIW, but am interested in hearing ideas!)
Simon, I absolutely agree that customers would opt for the superior product, but that's contingent upon them actually knowing the difference.

Again, I'll be the first to admit that I thought Sbux was first-rate coffee, and that I do like some of their products. But given the option between a Sbux and a quality independent shop, it would hardly be a choice!

The thing that worries me the most is the time it will take to launch such a campaign. In the long run, with the right marketing and planning, I'm 120% confident that a strong independent shop could run Sbux out of business if it opened up a shop right next to them. But in the short run, with a finite amount of operating capital to use before becoming profitable, there is a significant risk.

Of course, the simple answer is that adequate preparation is needed. The tougher question is how to speed up the learning curve for customers so that an independent doesn't go under before people begin to see or experience the difference.

Any ideas?
Mike, this is my simple response without reading any other responses already here.
((::::When the student is ready the master will appear:::::))

In more plain English, don't worry about the masses. They are already coming around. I was one of them once. Now I am a "Coffee Padawan". As most who know me from my posts I'm past the 1 year mark with our shop and more and more discover us every day. Those of the "masses" that just want a milk drink and a place to use there ipod and talk with their friends, the mermaid will always be there for them. I can not tell you how many customers the mermaid has brought us because the local largest employer destination resort lodge was serving their coffee. Some did not even stay to eat there because the coffee came from the green mermaid instead of an establishment who lives and breaths coffee everyday. Now they dropped *$'s because of budget reasons and went with a less expensive vendor. My bottom line will no doubt reflect that at the end of the next year. Mike do your best with Speciality Coffee and you should have no problem attracting converts to the new wave in this culinary delight. Share your passion and learn to manage your business and growth.
Joseph
--
Ambassador for Specialty Coffee and palate reform.
"The thing that worries me the most is the time it will take to launch such a campaign. In the long run, with the right marketing and planning, I'm 120% confident that a strong independent shop could run Sbux out of business if it opened up a shop right next to them. But in the short run, with a finite amount of operating capital to use before becoming profitable, there is a significant risk."

Mike #1 or at least very high on the list after your uncontrollable passion for what you want to do, is "Location" pick it very carefully.

Mike, forget about "I'm 120% confident that a strong independent shop could run Sbux out of business" this thought, banish it from your mind. Seriously....
Take note of my previous post where I told you how much business *$'s is bringing me and will do the same for you. *$'s and competition are your best friends. It is not about competition, repeat that till you pass out. Competition is good. It gives the public choice, it gives the public a way to measure weather or not you are doing a average job, a good job or better yet a euphoric spasmodic java experience for your customers. Competition brings more traffic to your locale. More traffic to your locale means more possible customers in your door. See the picture here?
A journey of 1000 miles begins with the first step Mike. You already took that. Risk? Yes, always, Sometimes and most often the greatest risks offer the greatest rewards.
"Educating the Masses?" they are and will educate themselves. Best to focus on yours for the time being.
Best wishes for now, stay on track, As your passion for what you love grows so will your base of friends and customers who want some of it to rub off on them.
Joseph
--
Ambassador for Specialty Coffee and palate reform.


Mike Morand said:
Simon, I absolutely agree that customers would opt for the superior product, but that's contingent upon them actually knowing the difference.

Again, I'll be the first to admit that I thought Sbux was first-rate coffee, and that I do like some of their products. But given the option between a Sbux and a quality independent shop, it would hardly be a choice!

The thing that worries me the most is the time it will take to launch such a campaign. In the long run, with the right marketing and planning, I'm 120% confident that a strong independent shop could run Sbux out of business if it opened up a shop right next to them. But in the short run, with a finite amount of operating capital to use before becoming profitable, there is a significant risk.

Of course, the simple answer is that adequate preparation is needed. The tougher question is how to speed up the learning curve for customers so that an independent doesn't go under before people begin to see or experience the difference.

Any ideas?
Joseph is correct, a competitor is merely an opportunity to let them make you look even better, if you are doing your job.

Regarding the education issue, one of the reasons we haven't as small shops been able to counter Starbucks ad campaigns is the amount of money it would take. Perhaps a glossy counter-campaign, sponsored by the SCAA, and a coop of small coffee shops across the nation, could accomplish what each individual shop could not.

But would that defeat the point? In our own individualness, do we not find that spark that keeps our customers coming back?
re: staying competitive, what i'm finding is that you will continue to have an opportunity to educate your customers if you keep your overhead low. today my shop has been open four weeks and we've hit our daily break even point 4-5 times in the last two weeks. we're about 10 customers a day away from breaking even EVERY day. we did no advertising save handing out flyers to the neighborhood.

while most people who've come into my shop know a bit about coffee already (per Joseph's comments), some don't and i have the opportunity to educate them tactfully on various facets of the craft. in order to keep doing this, i have to be sustainable, and low overhead helps accomplish this.
Paul,
Coffee consumers in general are changing, growing, morphing as we speak.
Oh and, "counter Starbucks ad campaigns " "Forget about it" another favorite quote of mine.
Paul, your very presence in the coffee market is a counter campaign. In my and hopefully your business plan *$'s works for us and will continue to as long as they are not in it for the coffee. If it is about corporate $'s then they work for us and drive customers our way. Customers who care more about the quality of the coffee than the image they support by buying from the blue mermaid are my target market.
"In our own individualness" This is what Speciality Coffee is all about Paul. You are right on the money here.
JoeR

Paul Yates said:
Joseph is correct, a competitor is merely an opportunity to let them make you look even better, if you are doing your job.

Regarding the education issue, one of the reasons we haven't as small shops been able to counter Starbucks ad campaigns is the amount of money it would take. Perhaps a glossy counter-campaign, sponsored by the SCAA, and a coop of small coffee shops across the nation, could accomplish what each individual shop could not.

But would that defeat the point? In our own individualness, do we not find that spark that keeps our customers coming back?
Good for you Jared, keep up the good coffee work.
"Run Forest Run" <];^) Now Bubagump shrimp is everywhere.
I'm a movie buff, almost as bad / good as my coffee geekness....
You will be big someday Jared, maybe not with shrimp but keep the faith...
We are in this together.
JoeR

Jared Rutledge said:
re: staying competitive, what i'm finding is that you will continue to have an opportunity to educate your customers if you keep your overhead low. today my shop has been open four weeks and we've hit our daily break even point 4-5 times in the last two weeks. we're about 10 customers a day away from breaking even EVERY day. we did no advertising save handing out flyers to the neighborhood.

while most people who've come into my shop know a bit about coffee already (per Joseph's comments), some don't and i have the opportunity to educate them tactfully on various facets of the craft. in order to keep doing this, i have to be sustainable, and low overhead helps accomplish this.
I'm going to have to agree with everything that has been said so far, especially about competition being your friend, especially when it comes to marketing tactics. Use what your competition has done "wrong" and use some of their information on which to base your shop off of. It is really expensive to start your Marketing Research all on your own in a completely unsaturated market. You want the competition around so you can get those purchasing habits, target markets, etc., without having to spend the money on getting that information (or spending more money than you have to).

You do not need the flashy Starbuck's campaigns (generally speaking) as mentioned before. They spend a TON of money on marketing efforts and to try and outrun them would not be reality. Once you get the first few customers in your shop that really appreciate your coffee and your service, word of mouth is HUGE and will do more for your shop than any table topper or flyer ever could.
Great gems of experience Meredith...listen up you guys..and me too.
JoeR

Meredith said:
I'm going to have to agree with everything that has been said so far, especially about competition being your friend, especially when it comes to marketing tactics. Use what your competition has done "wrong" and use some of their information on which to base your shop off of. It is really expensive to start your Marketing Research all on your own in a completely unsaturated market. You want the competition around so you can get those purchasing habits, target markets, etc., without having to spend the money on getting that information (or spending more money than you have to).

You do not need the flashy Starbuck's campaigns (generally speaking) as mentioned before. They spend a TON of money on marketing efforts and to try and outrun them would not be reality. Once you get the first few customers in your shop that really appreciate your coffee and your service, word of mouth is HUGE and will do more for your shop than any table topper or flyer ever could.

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