Category Archives: Cities

Buzz: Starbucks Unveils High-End Roastery-Tasting Room Concept 

 

Starbucks Reserve.

Using a barrage of adjectives like super-premium, unique, reserve and small-lot, Starbucks has just announced details regarding its new “premium coffee experience” store concept, as well as its flagship “small-batch” Roastery and Tasting Room, coming to Seattle’s Capitol Hill this winter.

The company says the new roastery will be a kind of interactive coffee museum and tasting room designed to showcase the company’s “small-lot” Reserve line of coffees. It will also be the flagship for Starbucks’ new store model, which will occupy some 100 locations in strategic markets throughout the globe over the next five years.

(related: Starbucks Piloting Mobile Trucks at Three U.S. College Campuses)

Adjectives abound, but if one phrase is an elephant in this particular room, it is “Third Wave,” one many around the high-end retail industry, including this blog, has avoided using for years. But it seems particularly apt here, as the company that embodies “Second Wave”-ness rolls out its new high-end, coffee-quality-focused brand.

Starbucks itself describes the new store concept as is a kind of higher rung in “customer experience segmentation,” part of the company’s retail “evolution.” Starbucks CEO Howard Schultz went so far as to describe the new roastery and tasting room as something that will revolutionize all of specialty coffee.

(related: Drama Unfolds with the Opening of Williamsburg’s First Starbucks)

“Everything we have created and learned about coffee has led us to this moment,” he said. “The Starbucks Reserve Roastery and Tasting room is a multi-sensory experience that will transform the future of specialty coffee. We plan to take this super premium experience to cities around the world, elevating the Starbucks experience not only through these stores but across our entire business.”

Here’s more from Starbucks on the new Seattle roastery:

A first-of-its-kind union for Starbucks of coffee theatre and manufacturing, this iconic Seattle destination will allow Starbucks to double its small-batch roasting capacity and grow its Starbucks Reserve® coffee presence from 800 to 1,500 stores worldwide, by the end of FY15. More than two years in development, this unprecedented experience will allow customers to engage with Starbucks passion for coffee in a 15,000 square-foot interactive retail environment devoted to beverage innovation and excellence.

In addition to the approximately 100 new premium stores, Starbucks is also unveiling new smaller-footprint and drive-through “Express” store models, where there will be a focus on quick service and developing Starbucks’ mobile ordering platform. These stores, the company says, will “address the increase in urbanization and decentralization of retail.”

(related: Cupping at Starbucks: The Sound of Silence (and Slurps)

Including its traditional retail stores, its premium stores and its express stores, Starbucks is on track to open some 1,550 outlets globally in 2014, and plans to open 1,600 in 2015, including 300 net new locations in the U.S.

Source: Daily Coffee News, http://dailycoffeenews.com/2014/09/05/starbucks-unveils-new-dont-call-it-third-wave-concept-plans-seattle-roastery-opening/

Advertisements

Buzz: Starbucks Launches Posh Store in Colombia

Yesterday, Starbucks officially arrived in Colombia.

After years of keeping the multinational specialty coffee powerhouse at bay, Juan Valdez will no longer be able to avoid battling Starbucks in its native market of Colombia. Starbucks, after being challenged by Juan Valdez in the US market in the early 2000s, and trying its own marketing foray into now defunct specialty coffee concept (15th Avenue Coffee), has launched its first retail coffee bar in Bogota, Colombia.

Instead of running from what many perceive as its strongest asset, the Starbucks brand, Starbucks is fully featuring its logo outside of this centrally located destination. Perhaps after completing decent market research, Starbucks realized that many in the growing global middle class aspire to an affluent lifestyle characterized by iPhone ownership, Starbucks specialty drinks, Coach products, and other premium brands. One of the most attainable products accessible to any income bracket is a simple cup of coffee and a snack. Juan Valdez, with its elegantly designed retails stores, has long taken advantage of growing wealth and a cultural disposition towards public life –of which the coffee shop culture plays a role. Since 2002, Juan Valdez retail locations have represented a place where folks can meet for business, for spending time with old friends and family, or on a date. It is seen as hip for younger generations while also as respectable and safe by older generations. It is also a source of national pride.

In reality, Colombia has been ripe for the arrival of Starbucks for a decade, but the terms  of that arrival have constantly evolved. This is emphasized in the version of Starbucks launched in Bogota, which is clearly meant to improve upon the Juan Valdez concept. They are aiming higher in terms of premium status, and likely want to differentiate Starbucks from Juan Valdez along those lines. In the short-term, it is likely that Starbucks will focus its Colombia expansion on only the most desirable, high-end, urban locations in order to solidly establish the luxury brand concept. It remains to be seen whether they creep down the price continuum to “Starbucks Express” and kiosk locations in a market that is already saturated with Oma and Juan Valdez competitors. There is nothing economical or middle class feeling about the Parque de la 93 location of the new Starbucks. Although a fairly small, quaint and stylish area, it is essentially a mashup of Georgetown DC and Central Park West NY  (Embassy Row clientele mixed with the wealthiest from the nearby financial district).

The Bogota cafe makes use of locally sourced wood, antique- and hammered-brass light fixtures and sells Colombian-inspired food such as cheese sticks and croissants with a sauce similar to dulce de leche. Source: Starbucks Corp. via Bloomberg

No doubt, there may some Starbucks clients that struggle internally with whether to support their  homegrown hero, Juan Valdez. Although, in the end, it appears that the Federation (Federación Nacional de Cafeteros) ensured local growers would benefit regardless of the new competitor– Starbucks in Colombia claims to source 100% of the coffee used in Colombia from Colombian growers. Starbucks’ unambiguous strategy to rapidly expand in Colombia, Brazil and throughout the region, could negatively impact the bottom line for Procafecol S.A., the parent company of Juan Valdez stores. In fact it could be devastating for an enterprise that claims to be preparing for an IPO and has struggled in its attempts to expand in the US and abroad.

For more pictures and the official press release from Starbucks, click here.

Cafe Hounding + Data Science: Hounding DC

It looks like 10 out of 16 spots on this list still need to be visited/hounded. Much work to do!

 

Map of DC coffee shops previously hounded or on the short list to be hounded.

Map of DC coffee shops previously hounded or on the short list to be hounded.

Consumer Habits: Coffee “To-Go” in Europe

22 October 2012: by Bob O’Brien
Global Senior Vice President at The NPD Group

I’m reading “Zero History” by William Gibson.  It is the last book of a trilogy that pretty much predicted YouTube and applications like Layar before there was any reasonable way for either to exist. And, yes, he gave us the term “cyberspace” in 1982.

This book is nominally about marketing…or maybe not, it’s hard to tell.  It was a little unsettling when he had the protagonist (Or maybe she’s not. Again, hard to tell.) stay in the same random Paris hotel where my wife and I mistakenly spent the first night of our honeymoon.  It was more unsettling when I read this:

“…she wondered exactly when coffee had gone walkabout in France.  When she’d first been here, drinking coffee hadn’t been a pedestrian activity.  One either sat to do it, in cafes or restaurants, or stood, at bars or on railway platforms, and drank from sturdy vessels, china or glass, themselves made in France.  Had Starbucks brought the takeaway cup? she wondered. She doubted it.  They hadn’t really had the time.  More likely McDonald’s.”

I love the term “gone walkabout.”  No offence to my fellow NPD bloggers but that little snippet is likely the best writing you’ll come across in this or any NPD blog.

For the past couple of years, I’ve included my own little riff on this in presentations I’ve done at conferences.

In 1997, when I was meeting with folks from our various European offices to brief them on CREST foodservice industry research and how we use it to help the industry make decisions, an Italian guy in the audience raised his hand and said “that chart is wrong”.  We were looking at a chart that showed how consumers in the US consumed coffee.  It showed the dayparts.  It showed the restaurant channels.  It also showed where consumers actually drank their coffee.  That part of the chart showed that about 40% (maybe more, I don’t remember exactly now) was consumed off-premises…on the go.

My colleague said that this couldn’t be correct.  ”Coffee is not for carrying!  Coffee is to be ordered from a bar and consumed at the bar or at a table, with someone.”  We discussed the issues and concluded that the chart was correct and that Americans were ridiculous, which I’ve found is a satisfactory conclusion to conversations for most people in the world.

Further to this conversation, I heard a presentation by a woman named Vanessa Kullman, the founder of Balzac Coffee in Hamburg.  She told the story of how, interviewing people walking by the front door of what was to be her first shop, they universally rejected the idea of buying coffee in a paper cup and taking it away.  She had to buy the cups and tops in the US and warehouse them in Germany because there was no European source.  At the time of her presentation she had over 50 shops.  Gutsy.

But:  in 2000, as the chart below shows, nobody bought coffee to go in the countries we track.  Today, a huge chunk of Northern European consumers buy coffee to go.  Coffee hasn’t just “gone walkabout” in France. It’s everywhere.  And, it’s not just a global brand that did it, Vanessa Kullman and other gutsy business people did it all over the place.

Bean Counting: Idido Natural Sun-dried – Counter Culture

Roaster: Counter Culture
Place of Purchase: Peregrine Espresso (14th St. NW Location)
Preferred Brew Method: Paper Filter Drip (pour over)
Excerpt From Counter Culture Describing Coffee:

Yirgacheffe, Ethiopia
Organic • Shade Grown
The community of Idido, just outside the town of Yirgacheffe, has once again produced the quintessential Ethiopian Natural Sundried coffee. One of the cleanest and most refined naturals we have tasted in years, Idido offers notes of strawberry, blueberry, and orange zest with a balanced, chocolate-like sweetness.

Cafe Hound Review:   Generally, Counter Culture got this one right. This coffee cups clean, though it has  enough of what I call, “berry funk” to entertain your palate. I cycled through several of the Counter Culture coffees this year, with the Central Americans admittedly disappointing after a VERY strong showing in 2009, and a decent showing in 2010. In 2010 my favorite growing region of the world ended up being Kenya, though the Cafe Hound annual blend at the end of 2009 included a fair amount of sun-dried Ethiopian coffee from the Amaro region. (washed version for sale at Novo now). Right now, this Yirgacheffe is rocking my world. I admit that as the weather cools here in the Nation’s Capital, I’m leaning towards more bold and fruity coffees – though I enjoy a clean cup so much that I rarely venture to the extremes of many Indonesian grown coffees (Sumatra). Though, it is all a matter of taste and I encourage you to post your comments letting us know what your preferences are this year! Happy Hounding!

info@cafehound.com

Cafe Hounding: Cafe Samba – Bogota, Colombia

Cafe Samba
Bogotá, Colombia
Cra 7 # 58-48
Tel: 348 1697

Unfortunately, I enjoyed Café Samba so much that I’ve barely even took a photograph of the place, though having frequented it on many occasions spanning from 2006 to 2010.

It is difficult to state what the best part of the lounge/cafe/bar located on the Septima is: the coffee products, natural juices, and cocktails are simply the best in that part of Bogotá; the moderately sized food selection is equally impressive in quality. They make the most of what they have when it comes to ambiance of the place (lounge feel even without the chic lounge budget of the Chico and Parque 93 neighborhoods). Service is superior for the price range and the couch located at the front of the shop always seemed to be reserved for me. Also, the clientele is an attractive youngish blend of professionals and students.

My favorite item on their menu would be a fresh blended non-alcoholic natural joice cocktail of Maracuya, Mango and Orange Juice mix. The quality of their coffee is above average for a country that exports the majority of their high quality beans.  They use a high quality vintage Elektra espresso machine and decent coffee roasted in country.  I imagine they could improve their coffee quality if they sourced their coffee from a better roaster.

Musically, this café makes an impression on locals and visitors alike considering the high quality sound system wired from wall-to-wall and mounted in the ceiling. The “DJ” tends to be whatever barman  has a free moment. Luckily, all have terrific taste when it comes to selecting a good playlist.

View of Bogota afternoon from front of Cafe Samba

If you make it to Colombia, Cafe Samba is well worth a stop along the way.

Mushrooms, Aromatica Tea, Fruit Drinks in 2010

– Maher Hound

Cafe Hounding: Cafe Grumpy – New York, NY (Chelsea)

Cafe Grumpy (Chelsea) West 20th
224 West 20th Street
New York, NY 10011
Phone: 212 255 5511
http://www.cafegrumpy.com/locations/cafe-grumpy-chelsea/

Best coffee in New York; possibly the entire Atlantic Seaboard.

They began roasting their own beans in September 2009 (at Greenpoint roastery in BK, New York). Before that, that only bought wholesale from the best roasters in the United States (including Novo Coffee, Intelligentsia, Ritual Roasters, Blue Bottle, Counter Culture).  Both Kris and Maher visited Cafe Grumpy in October 2009, their initial visit to this location.  The clean and bright interior of the locale is very appealing and it becomes immediately apparent that Grumpy is very serious about coffee and about great customer service.  The baristas all are very well trained and coffee knowledgeable.  The machines are all of excellent caliber and the cleanliness is very impressive.

Cafe Grumpy (Chelsea) from the front.

Cafe Grumpy (Chelsea) from the entrance. Old friends catching up inside.

There is no wi-fi here and the philosophy of the management is that people come to Grumpy to socialize, drink coffee, and NOT get lost in their electronic equipment.  Given the popularity of iPads and smartphones these days, I’m not entirely sure that the management is completely batting back the gadget-aholics.  That said, the quantity and volume of conversations here is noticeably more than in many other shops visited in DC and elsewhere.  Without a much surprise, during this October trip Kris and Maher visited at least five shops – including Abraço, Everyman Espresso, Mud (East Village), Juan Valdez – and Grumpy easily bested the rest.

Cafe Grumpy cappuccino with latte art included 🙂

Coffee here was plentifully available in retail whole bean variety and drinks were made carefully and wonderfully.  UPDATE:  In November 2010 a friend recently brought me a pound of ‘Heartbreaker’ from New York.  This is the first time that I’ve had the opportunity to try their self-roasted blend (formerly custom blended by outsourced roasters).  It rocks as espresso.  Not bad for drip coffee but wouldn’t recommend it.

Blue Bottle has recently opened its own location in New York and now Grumpy is roasting its own beans.  As the top of the specialty coffee segment broadens its customer base, competition among the best is increasing.  Following the increase in market size and competition among the major players, there has been a very interesting diversity of business strategies employed by the big names. More to come on this…

– Maher Hound