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Silas Henton

Prof. Lewandowski

English 122

18 March 2010

What¶s Your Brew?

The gourmet coffee industry has become one of the largest consumer industries

throughout the world. Coffee has also become the world¶s second most valuable commodity

next to petroleum, producing approximately $60 billion annually in sales (Guatemala/Mexico

par. 11). It all began in the United States with the birth of the coffee giant, Starbucks, which has

become the leading supplier to daily coffee consumers. The Starbucks brand has become a

world renown coffee company setting the standards for the gourmet coffee industry. Although,

within the multi-billion dollar industry in the United States, business has evolved to a higher

demand for more local and small coffee shops that focus on community interest, thoughtful

environmental purchasing, quality coffee, and comfortable setting. Despite the monopoly

Starbucks has imposed on the coffee industry, smaller and local coffee shops have risen in

popularity and value. Local and smaller coffee shops, normally called ³mom and pop´ shops,

still outnumber Starbucks in the United States with over 57 percent (Clark par. 7). If you have

ever visited, regularly do, or possibly will visit some sort of coffee shop in your future, what

would you support; local or a national chain?

So, why do people visit Starbucks versus local coffee shops? Do people buy Starbucks

just for convenience? Society has become so caught up in living in a fast-paced world,

especially in the major cities, that people here in the United States tend to expect or demand

service instantly. With the increased growth of the fast food industry and the drive-thru option,
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people expect food and drinks on the fly. Consumers have lost their patience waiting in fast

food lines, even though receiving their food is much faster that if they were going to a typical

sit-down restaurant. Has the Starbucks drive-thru concept manipulated the consumer culture

creating a sense of immediacy like the fast food industry? People thrive on convenience, and if

they can get a quick cup of coffee or tea without leaving their car they will do it. Any Starbucks

that has been recently built has drive-thru capabilities. By operating this way, it has allowed

their convenience factor to increase as well as increases their revenue. The convenience factor

is a major benefit, especially for those who have busy schedules. Those who do utilize this

alternative, experience a completely different aspect of the coffee industry.

In order for Starbucks to become the industry leader, they have made very important

business decisions and strategies. One of the most beneficial factors to their success is by

offering a vast menu selection. They have become a one-stop-shop when it comes to

purchasing beverages or small bite items such as pastries and deserts. Of course, Starbucks

offers the traditional coffee house drinks like brewed coffee, lattes and cappuccinos, but also a

more expansive menu than most mom and pop shops; such as frozen drinks, tea lattes, and

smoothies. Any form of business that offers products or services knows that having a multitude

of options allows something for mostly everyone.

Starbucks also offers a wider range of hours of operations due to the fact that they are

able to hire more staff, including managers, because they have higher budgets than mom and

pop shops. Mom and pop shops depend less on management and more on themselves to keep it

open, which may tend to decrease the hours open. As well as more options on when to go, there

is virtually a Starbucks at most street corners or at least in every general area of the more

populated cities. Like the fast-food industry, the more stores there are, the more people will
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visit. Convenience and menu selection are no doubt very important aspects when considering a

coffee shop to visit, but there is more to it that that.

One of the most important factors within the coffee industry is the atmosphere, or the

feeling you get while your there. Unlike drive-thrus, coffee shops offer an amazing atmosphere

where it ³is a place to congregate, talk, write, read, surf the web, e-mail, entertain one another,

or pass the time, whether individually or in small groups´ (Groot Par. 1). It is where people

socialize, escape and/or relax. With all of these reasons, coffee shops are seen as a ³third

place´. ³Retired University of South Florida sociology professor Ray Oldenburg came up with

this term to describe places where people gather on a regular basis other than work and home´

(Simon pg. 82). So, coffee shops are much more than just coffee; they are places where

community happens.

What you see when you walk into a local or mom and pop coffee shop is a much more

relaxed atmosphere than Starbucks. These coffee shops are typically more involved with the

community, where they may showcase a local artist by allowing them to hang their work

throughout the store. They may even have books to read or games that children can play. There

is a sense of connection when going to a local coffee shop because you feel like you are not just

another customer, but a guest. Going to a mom and pop coffee shop is more like an experience

rather just a visit.

Interestingly, according to Jason Daley, who wrote the article ³That¶s A Starbucks´ in

the November of 2009 Entrepreneur magazine, discuses how Starbucks has forgotten about the

basics when it comes to a business; the connection with the community. Daley says, ³Big isn¶t

always beautiful«Starbucks and chain have become dirty words, while local, independent and

unique have become core values´ (Daley p. 96). He also mentions that Starbucks is currently
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opening brand-less café¶s, which are still Starbucks, but have the mom and pop culture. Daley

continues to discuss how once a corporate retail store reaches a certain amount of stores, the

stores loose their individuality, because in order for them to be the same, rules are needed to be

in place. That is why Starbucks is now realizing how important local and smaller coffee shops

are, and because they have the ability to connect with the community and each store has its own

unique quality.

Within the coffee community, business is always under pressure when it comes down to

how Starbucks affects the mom and pop stores. Despite the fact that mom and pops out number

Starbucks, they still have made an impact on their business, some good and some not so great.

Interestingly, the rumor that Starbucks kills small businesses turns out to be false. In the article,

±
 
 , writer Taylor Clark mentions that Starbucks may even ³do all of your

marketing,´ which generally results in more business and more profit. For a small business

owner, this would cut on a lot of expenses. Like in any industry, competition is good, which for

the coffee industry this can either help or hurt businesses. Unfortunately, there are some that do

suffer, but generally they stay afloat if they offer quality coffee and have a comfortable

environment.

Before you can enjoy the coffee, whether inside a local coffee shop or going through a

drive-thru at Starbucks, the coffee has to come from somewhere. A major element that directly

affects the coffee industry on a global level is thoughtful environmental purchasing of

sustainable coffees. Sustainable coffee is how the coffee itself has been grown, ensuring high

quality coffee. There are three types of sustainable coffee: Organic, Shade and Fair Trade

coffees. Approximately $152 million in retail coffee is purchased in the United States of

certified sustainable coffees every year (Giovannucci pg. 2).

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It is interesting that coffee became the first certified fair trade product, and owes its

growth and success to coffee¶s global importance. Coffee was the ideal fair trade product,

because from the point it is picked to the moment of grinding it undergoes relatively few

transformations and changes hands fewer times than many other commodities. Fair trade

assures consumers that the coffee we drink was purchased under fair conditions of the farmers

and workers. Fair trade coffee is ³purchased directly from cooperatives of small farmers that

are guaranteed a minimum contract price´ (Giovannucci pg. 3). ³To become Fair Trade

certified, an importer must meet stringent international criteria; paying a minimum price per

pound of $1.26´ (Fair Trade). Purchasing fair trade coffee means better ³community

development, health, education, and environmental stewardship´ for those who work at the

coffee plantations (Fair Trade par. 2).

Coffee is one of the largest commodities in world trade as a source of foreign exchange

to developing countries. Coffee producers around the world are very dependent upon the

market price for their coffee beans. When the world market dollar is high, farmers benefit

more. When the dollar is low, farmers drastically lose much of their profit, which in turn affects

the farm workers. As multinational companies locate the more inexpensive beans in a particular

region, they invest in that option. Many farmers from certain countries are forced to keep up

with the other farmers around the world without regard to the price (Fair Trade). These low

prices encouraged world market purchases.

Many mom and pop coffee shops only purchase or supply coffee from sustainable

coffees. On the other hand, with all of the coffee Starbucks buys each year, only six percent of

it is fair-trade certified beans. Starbucks is a huge gourmet coffee company providing a large

selection of coffee beans to the consumer. If the consumers do not buy a particular bean,
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Starbucks will stop buying that bean at the next trade time. This will not only affect the profit

of the farm owner from where that particular bean was grown, but also the owner¶s ability to

plant new crops and ultimately the quality of life of the farm workers. Starbucks began to carry

fair trade coffee in April 2000, as they agreed that it gets the benefit back to the family farmer.

But, Starbucks does not agree to use fair trade in their daily brew (Straus). ³Starbucks could

easily purchase tens of thousands of additional pounds of fair trade coffee each year without

paying a whole lot more, but it doesn¶t´ (Simon p. 209). Why is it that the most successful and

profitable coffee company in the world, who says they help support the guilt-free bean, chooses

not to do more for the farm workers? To see if the coffee is fair trade certified, look for the

following logo (see Fig. 1).

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Fig. 1 Logo used to identify Fair Trade Certified products.

Where has the appreciation for the coffee gone? Are people too busy to enjoy the coffee

shop environment? Over 54% of the adult population is everyday coffee drinkers, which is over

100 million people (Coffee). More and more consumers are drinking coffee with nearly 2.25

cups being consumed every day per person. It is interesting that 1962 marked the highest peak
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in coffee consumption in the United States with an average of three cups per day (Dicum 38).

Those who go to coffee shops generally will only frequent one specific coffee shop because of

familiarity and taste. Could it be because of higher caffeine count in the coffee, causing a

stronger addiction to the coffee? In the article, 

 , writer Daniel Gross

describes the results of a lab test that reports the amount of caffeine in a 16-ounce cup of coffee

from Starbucks, Dunkin¶ Donuts and 7-Eleven. Gross reports Starbucks¶ cup ³contained 223

milligrams of caffeine, compared with 174 and 141 milligrams,´ respectively in the others. He

also mentions the average Starbucks coffee drink actually contains 320 milligrams of caffeine,

that¶s nearly three times as much caffeine as a No-Doz caffeine pill. For those who have a daily

habit of drinking coffee and repeatedly frequent Starbucks, it may not only be the convenience

and menu selection, but also symptoms of withdrawal that draws them back (Gross). It is

amazing that there are those who not only frequent Starbucks on a daily basis, but will visit

them twice in the same day.

So what do people look for in a coffee shop? Besides the obvious answers for Starbucks

with the menu selection and convenience, what do consumers need, and/or desire to have and

feel? Throughout experience of being a barista for over seven years, I have encountered many

different types of coffee drinkers including a wide range of age and demographics. With direct

research from local coffee shop patrons as well as those who frequent Starbucks, I concluded

that the older generation of coffee shop visitors enjoy local and smaller coffee shops because of

the more relaxed environment, better quality coffee and more community involvement. In my

interview with Joe, a 56-year-old brewed coffee drinker, he mentions he ³would rather support

local business and put money back into the community versus cooperate.´ In the article,



           , Lorraine Ball, a guest
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speaker at a local small business function, mentions that ³out of every dollar you spend at a

local business, 40 cents of it stays in the community. When you spend a dollar at the big chain

stores, 13 cents stays in the local economy´ (Entrepreneurs).

I have concluded that most young coffee consumers do frequent Starbucks because of

the convenience factor. From the fact that there are over 15,000 in the United States, they can

sometimes be on every street corner; sometimes at multiple sides of the street. Starbucks

enthusiasts are also drawn to their stores because they offer such a wide range of gourmet

drinks. Of course, variety is a great business aspect when it comes to consumer purchasing,

which is a strength that Starbucks does have. Typical mom and pop shops do not offer as many

selections that Starbucks does, such as their frozen frappaccino drinks, teas or smoothies. The

older and more mature crowd generally attends the mom and pop shops, mainly because of the

comfortable environment and the quality of coffee provided. These consumers seem to be more

interested in the community involvement offered in which Starbucks does not offer, even

though their ³image´ says they do.

It is an interesting fact that drinking coffee was first referenced in North America in

1668. Soon after, coffee houses were established in New York, Philadelphia, Boston, and other

towns. ³The Boston Tea Party of 1773 was planned in a coffee house, the Green Dragon. Both

the New York Stock Exchange and the Bank of New York started in coffee house, in what is

today the financial district known as Wall Street´ (Story of Coffee).

So, coffee is not just coffee. Retail sales revolve around a whole realm of business

strategies and marketing techniques, consumer and community interest and most importantly

the people. The quality and amount of work put into our pleasurable habits have a large affect

on our daily lives. It is unfortunate we do not see the lifestyle of the farm workers who put their
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heart and soul into making a subsistent living. The benefits in the long run since the demand for

Fair Trade coffee has begun, helps in the fairness of the families and workers. So next time

when you consider visiting a coffee shop, keep in mind everything that goes into how your

coffee got there. It is important to know what coffee shops offer as far as bean quality and

where they get it, but also what kind of environment you are in. You may be surprised that

when putting more thought into what your drinking, you will have more of an experience at a

local mom and pop shop versus the big chain, Starbucks. Granted, Starbucks does has many

things to offer, great menu selection and a high convenience factor, although local and smaller

coffee shops just add a little more touch to the service and coffee provided. Feeling like you are

apart of a community and knowing you will get exceptional service and top-notch coffee is

definitely worth the extra few blocks. So America, what¶s your brew?
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Works Cited

á

 ±

 
 !. National Coffee Association of USA, Inc.

Web. 12 Mar. 2010.

Clark, Taylor. ±
" 

 #!
!$ $
 

   . Slate.com. 28 Dec. 2007. Web. 26 Feb. 2010.

 
$
 
%
 Coffee Research Institute. Web.12 Mar.

2010.

Daley, Jason. "That's a Starbucks." 

 Nov. 2009: 93-101.

Print.



   &        Weblog post.

Problogservice. 28 'á
(á)á ( 

  . 30 Nov. 2009. Global Exchange. 12 Mar. 2010.

Fair Trade Logo. Photograph. Fair Trade Certified. Web. 12 March 2010.

Giovannucci, Daniele. 


  *!  $
 ! 


!. Rep. Specialty Coffee Associations of America and the Commission for

Environmental Cooperation's, 2001. Web. 27 Feb. 2010.

Groot, Jack. + ",
#   -./. Rep. Specialty Coffee

Retailer, 21 Dec. 2009. Web. 27 Feb. 2010.

Gross, Daniel. "Starbucks Vs. Its Addicts." Slate.com. Washington Post, 5 Oct. 2004. Web.

1 Mar. 2010.

0$1)2 3  
!. ., . Frontline World, May 2003. Web. 12 Mar. 2010.

Joe. "Coffee Questionnaire." Personal interview. 6 Mar. 2010.

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Simon, Bryant. *!

 #&


$ $ 
 . Berkeley:

University of California, 2009. Print.