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If you’re a Wall Street analyst, you might note that year over year, Starbucks’ valuation has slipped about 40%. If you’re one of several thousand Starbucks employees you may soon find a pink slip in your pay envelope, as the company moves to close 600 stores, eliminating some 12,000 jobs. If you’re an independent coffee house owner, you may be sitting there with your jaw hanging slack, just trying to wrap your head around the idea that, when Starbucks closes 600 frickin’ coffee shops, the move shrinks its overall footprint by a mere 8 points. And maybe if you’re a Starbucks customer you’re just so over that whole Starbucks thing. Sure, Starbucks was the epitome of hip for a while, but then they became, well… McDonalds:

Twenty years ago, it was love at first sip. Like every prisoner of love, I went from downing one cup a day to three or more. How, I wondered, had I gone more than 40 years without a midafternoon break or even a “for no reason” indulgence?

Today those memories are like bitter, stale grounds. These days the breaks aren’t fewer but are often enjoyed somewhere else. That early Starbucks mojo is no more. My disillusionment set in about three years ago, but the company’s ballyhooed “Starbucks experience” died even earlier, killed by a growing bureaucratic culture.

Ouch.

Maybe it *is* about the bureaucracy. There is, of course, a very real danger when you grow to the scale of Starbucks — or McDonalds — and your stores light up every other street corner, shopping mall and airport concourse. At some ill-defined point on your meteoric growth chart you may cease to become the sum of whatever got you there — whether that was a curiously strong cup of brewed coffee, a made-to-order espresso milkshake or  a Happy Meal — and instead morph into a massive real estate holding company that also brews coffee by the gallon pot.

Or maybe it’s something else. What with mortgage meltdowns and gas prices at four bucks and change, a spiraling economy has customers feeling the pinch, caught between guzzling a latte or putting another gallon of fuel in the family hauler. Call it — as financial self-help author David Bach has — the latte factor:

The Latte Factor® is based on the simple idea that all you need to do to finish rich is to look at the small things you spend your money on every day and see whether you could redirect that spending to yourself. Putting aside as little as a few dollars a day for your future rather than spending it on little purchases such as lattes, fancy coffees, bottled water, fast food, cigarettes, magazines and so on, can really make a difference between accumulating wealth and living paycheck to paycheck.

Oh sure… financial gurus have been offering like-minded advice for decades… but those were years that lacked the incentive of four dollar gasoline and upside-down mortgages, too. Maybe folks are actually heeding the collective wisdom of the financial set. Maybe they don’t have a choice.

More likely what’s got Starbucks on the rocks is a bit — or a lot — of both factors. Which isn’t to say that Howard won’t be able to right the good ship Starbucks… but I’d wager the course corrections are far from over.

And while Starbucks is thrashing, other shops –small chains and indies alike — may be able to carve out some new opportunities for themselves, provided they’re able to keep their focus on the fundamentals: making great coffee and satisfied customers, one cup at a time. 

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It’s Earth Day 2008. The climate crisis is accelerating, vast sheets of ice are collapsing, islands in the Pacific have been drowned in rising seas, and weather the world over is growing increasingly violent. If we don’t take immediate action — all of us, and right now — we face a future unlike anything we’ve known.

But let’s be honest… running a successful and (ideally) profitable coffee house is something of a high-wire act at the best of times. And — economically-speaking — these aren’t the best of times. You’ve got a budget to watch; a creeping expense column can throw things out of kilter. Fast. It’s not going to do you or your environmentally-minded customers any good for you to bankrupt yourself in the name of ecology.

That said, there are savings to be found in running a more efficient and sustainable coffee house, coffee shop or espresso bar. Some of these savings can be realized pretty quickly, others require a longer view. If you can, don’t just consider today’s bottom line, but tomorrow’s. And next year’s. And — for goodness sake — don’t lose sight of the ultimate bottom line here… the planet’s climate is in crisis. And it shouldn’t surprise you to learn that the viability of specialty coffee is at the forefront of that crisis.

In greening up your coffee house, there are (at least) three distinct areas where you can bring your efforts to bear: reducing energy, increasing sustainability, and making it easier for your customers to go green, too. We’ll look at each in turn. There’s a lot to slog through here, so I’ll get right to it.

Reduce energy.

A coffee shop is an energy sink. You’ve got lots of things to keep hot, things to keep cool, and excruciatingly specialized equipment to get them all mixed together. Where do you begin?

Start with an energy audit. Chances are your power company will audit your business at no charge, and provide you with a fairly comprehensive list of recommendations. It’s a great place to start… and an ideal way to benchmark where your business stands, right now. You’ll want that baseline to measure against after you’ve made some improvements.

While your power company will have lots of tips for you in terms of properly insulating your space (ceilings, walls, windows, doors) and savings you might achieve in terms of lighting (switching to CFL fixtures) and the like, chances are they won’t know enough about your specialized equipment — say, espresso machines — to tell you the whole story. You can augment what you learn on an audit report by using a portable or panel-installed power use monitor (think Kill-A-Watt and the like) to measure how much energy your specialized equipment consumes.

You’ll find your coffee house has any number of power-sucking commercial appliances. You’ll probably learn which of these costs you the most to operate in the course of your energy audit; you may not learn, however, which are the most efficient… or more importantly, which aren’t. Lacking any information to the contrary, here’s where you might want to start.

• Dishwashers. You probably know you can save energy and water by running your dishwasher only with a full load. (Of course you do!) You may not know that if you invest in an Energy Star rated commercial dishwasher you can see a pretty immediate return on your investment. An efficient dishwasher can save your coffee house up to 90 MBtus, (about $850 a year on your energy bill) and 52,000 gallons of water (probably another $200 a year).¹
• Refrigerators and freezers. Today’s Energy Star rated chill chests are as much as 35% more efficient² than the bog standard item of the last 10 years, due to advances in compressor and fan-motor efficiency and new anti-sweat technologies (’cause nobody likes a sweaty fridge.) Your new refrigerator can pay for itself in a little more than a year.
• Espresso machines and brewers. In a great many cases, you can insulate the boilers of your always-on equipment (much like you’ve insulated your shop’s hot water heater, right? Right?) Mind you, if you don’t know the internals of your brewers like the back of your hand, it’s probably best to have it done by your service-tech. A flaming espresso machine is decidedly not eco-friendly; we’re probably talking about kevlar, not simple fiberglass batting.
• Coffee roasters. Clean, clean, clean! A clean roaster is not only a safe roaster, it’s also far more efficient than one that’s choked up with years of coffee oils, a creosote-filled exhaust and clogged air vents. You may be surprised with the energy savings you realize.

So maybe it’s not in your budget to spring for new, high-efficiency appliances this year… there’s no reason you can’t make sure the appliances you have are operating at peak performance. Clean your fridge’s evaporators, condensers, and heat-exchange coils. Replace worn and leaky door seals. Better still, get a regular service regimen going so that all of your equipment is operating well throughout the year.

Increase sustainability.

Greening up entails more than just curbing your shop’s power demands. It’s also about breaking some bad habits, many of them having to do with things we simply throw away. After decades of disposable everything, we’ve become conspicuous consumers of our limited natural resources. And it’s got to stop.

• Enough with the plastic cold cups already. Bio-polymer alternatives biodegrade in commercial composting landfills inside a month; plastics are forever. Greenware cups from Fabri-Kal make petroleum-based plastic cold cups obsolete.
• Nix those unrecyclable paper hot cups. Look into compostable paper cups like the ecotainer from International Paper, lined with a corn-polymer resin that’s compostable and will degrade over time.
• Still double-cupping? Just stop, already. Please. Products like the Java Jacket are pretty much de rigeur and new biodegradable entrants like the ecoSleeve appear to work just as well for cold cups, too.
• Want to take a really big step? Consider getting rid of disposables altogether!
• Recycle! How many gallons of milk does your coffee house consumer every day, and how many plastic jugs do you empty as a result? If you’re not recycling, that adds up to a heaping pile of forever in a landfill. Recycle your consumables. More, make it easy — like, really easy — for your customers to do the same.
• Use green cleaning products. Green cleaning agents are safer for your employees to use, and they typically don’t contain any VOCs (volatile organic compounds).³ Check with the Green Restaurant Association for a list of endorsed products.
• Buy food locally. When you purchase locally grown foodstuffs, suddenly all of your customers are localvores. More to the point, locally produced milk, fruits and vegetables are fresher, taste better, and your dollars support your own community (rather than some faceless transnational food cartel.)

Make it easier for your customers to go green, too.

People are waking up — finally! — to the stark realities of global climate change. And increasingly, folks the world over want to do something about it. People are setting back their thermostats, choosing cars with better gas mileage, replacing their light bulbs — all the while looking for opportunities to do more. You can help.

• Offer organics. By all means, start by offering a selection of great organic coffees. More, make an organic coffee your house blend; your standard espresso. But don’t stop there! Look for local, organic milk and dairy suppliers, bakers and folks who farm great produce. Make organic an every day thing.
• Switch to recycled paper products. From paper towels to napkins to bath tissue, recycled paper products — no longer limited to options of “brown” and “rough” — are an increasingly compelling alternative to virgin fiber sources.
• You know and I know that folks just love those cute little bottles of water. More, we both know those little plastic bottles are just plain stupid, ecologically. So do something about it. Offer ice-cold, filtered water to refill your customer’s reusable bottles, to start.
• Encourage customers to use their own mugs. Whether you want to host a wall of customer cups for your regulars, or offer a discount for folks who drop in with their travel tumbler in-hand, get behind your customers’ efforts to green up their own lives.
• Educate your customers. Going green isn’t one of those private, hair-shirt-wearing sort of things… it’s something that you want to make some noise about. Let your customers know that you’re going green. And how. And why. By demonstrating your commitment to the environment, and by making it easy for your customers to make good choices in your place of business, you help them make greener, more sustainable choices everywhere.

Final thoughts… and an invitation.

Greening up your coffee house can save you money (in the long run, certainly, even if it may have some up-front costs). And going green can improve the morale of your staff even as it boosts the loyalty of your customers — all of them. Greening up means a safer, healthier place of business, and will ultimately lead to a safer, healthier environment. Most of all, going green is simply the right thing to do.

While I’ve thrown a lot of ideas into this article, it’s really just a start. I welcome your feedback, your ideas, and your stories about how you’re greening up your coffee house… the challenges you face, and how you overcame them. We’re in this together, after all.

I’m not the only one talking about the intersection of coffee houses and sustainability these days. See also:

• Matt Milletto’s Going Green in Your Coffee House, part 1 and part 2.
• Stewart Fritchman’s Sustainable Coffeehouse video

Notes and Links

1. Source: Energystar.gov commercial dishwasher savings guide. ↩
2. Source: Energystar.gov commercial solid door refrigerator / freezer savings guide. ↩
3. See Treehugger.com for more on volatile organic compounds. ↩

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In the wake of the Starbucks’ public makeover, and with the SCAA show rapidly approaching, there’s a bevy of coffee-centric ink (’lectronic and otherwise) flowing at the moment. Lots of publications are taking a look at their local coffee scene, trying to figure out who the players are — and discovering that the coffee shop just ain’t what it used to be. (Hoorah.)

Here’s a take on the Pittsburgh coffee scene (featuring the fine folks at Aldo Coffee, among others.)

“Our goal,” offers Rich Westerfield, genial co-owner with wife Melanie Westerfield, of Aldo Coffee on Mt. Lebanon’s Washington Road, “is to raise the level of conversation and appreciation of what coffee can be.”

You go, Rich!

Locally, upper-end coffee shops “have become a central place,” Westerfield says, for many the magical Third Place – after home and work. Priming the French press, Aldo, for example, brings in ska bands and steel drums. One church actually meets there monthly. “Coffee houses bring people together,” he says. “They’re oases of community in a city.”

Ska, steel drums and church groups. Nice.

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Listen… Hear that?

 
. . . . . .

That’s the sound of thousands of coffee retailers gasping for air, reeling from a sucker-punch. These are folks who’d aspired to get themselves a Clover… the commercial, cup-at-a-time coffee brewer that’s been described as the signal development to usher in the age of brewed coffee, the way to change how we think about brewed coffee, and — most earnestly — as a major point of differentiation between independent coffee shops and the behemoth that is Starbucks. These are folks who’ve just found out that Starbucks has decided to acquire the company that makes the Clover brewer. That’s right… Goliath just bought David’s slingshot.

And that odd tap-tappity-tap noise you hear? That’s the sound of every single coffee retailer who has a Clover on order speed-dialing Seattle to see if they’ll still get theirs.

But honestly, how could Starbucks Chairman and CEO Howard Schultz resist? After all, it was Howard who issued the much-leaked clarion call that railed against the commoditization of the “Starbucks experience.” Howard wanted romance; Howard wanted theatre; Howard wanted the smell of ground coffee to once again permeate Starbucks stores. And most recently, Howard showed us all he wanted a consistent experience, by shuttering every single retail Starbucks for a day to retrain its barista staff. The Clover brewer delivers all that — and most importantly — it delivers a really, really great cup of brewed coffee.

Provided, that is, that you start with really great coffee beans. So far, the couple hundred Clover brewers in the market today can be found at boutique (call ‘em Third Wave if you insist) coffee retailers that offer only the best of the best — Cup of Excellence auction lots, micro-lots of beans from extraordinary growers — and who roast their coffee with the same extraordinary care as they source it. Starbucks has been no slouch in sourcing some pretty good beans, themselves… but when it comes to the roaster, can they lighten up?

Starbucks could no more likely change its signature roast style than a leopard shed its spots. They could, however, extend their line with a new crop of lighter-roasted fare… beans that remain true to the character of their origins. And that — at least as much as Starbucks’ acquisition of Clover — could prove a real blow to indy coffee shops.

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Remember that note a few days back where Starbucks was closing up shop for a few hours to retrain its staff? The good folks at Coffee Klatch (Hi, Mike! Hi, Heather!) cleverly decided to offer free coffee while their neighborhood Starbucks shops were closed for a remedial course in coffeeology… and in so doing accidentally started a movement.

“First our announcement started circulating on coffee discussion websites and blogs, then our phones started ringing and email messages of support poured in from coast-to-coast,” says Mike Perry, Coffee Klatch president. “I was shocked to see that our local promotion to demonstrate how much better our coffee is than Starbucks had turned into a nationwide uprising of independent coffeehouses.”

So walk right on in to Coffee Klatch, or a fine, independent coffee house near you, order yourself a cappuccino, and hum a few bars of Alice’s Restaurant. With feeling.

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• Say what you will about the Grey Lady’s reporting, they still do a great obit, and their remembrance of Alfred Peet is warm and packed with fondness. More still, at The Daily Californian, and The Seattle Post Intelligencer.
• A little late to the party? The big news this week is that Starbucks has entered the fray of single-cup coffee merchants. First question, what took them so long? Second question, why choose Tassimo, a single-cup machine that’s a… what’s the word? Oh yeah… loser.
  

  Kraft launched Tassimo in France in 2004 and later extended the business to the United States, Canada and other countries.

  But the business failed to live up to initial expectations and in January Kraft decided to take a $245 million asset-impairment charge related to the business, largely due to lower manufacturing capacity utilization.

  Big picture: Starbucks’ entry to the market can only help sell *everybody’s* brewers as they’ll bring more awareness to single-cup at home than any ten other roasters combined. Meanwhile, I’m enjoying the first comment found at Gizmodo’s entry on the news. ;)

• Finally — and this one is worth it just for the photoshopped to-go cup — word on Starbucks entry into Russia.
  

  
  “[W]hile Russians have taken quickly to coffee, drinking patterns here differ from the West. Many coffee shops stay open round the clock, and people like to while away an hour or two slowly drinking and smoking. Coffee House, with 90 shops in Moscow, doesn’t just serve coffee, but beer and vodka too.

  Starbucks spokesperson Kerry Irwin confirmed that except for some ‘local content’ in the food offered, the company would not be changing anything about its global model to cater to local taste.”

  How do you spell glasnost, again?

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