Black Coffee Shops Take on a Different Aroma

Originally owned by activist and jazz advocate Richard Fulton, who died in 2000, the establishment is now run by his partner, Erma Kent. After relocating to 4305 Degnan Blvd. in October 2005, across the street from the Lucy Florence Coffee Shop, Kent is now preparing to sell the business.

"We've tried to keep Richard's spirit very much alive," said Kent, 59, a hairstylist by trade, who runs the business with her daughter Shannon. "We have live jazz performances three days a week with young up-and-comers like Kamasi Washington and the Next Step. People can surf the Web, watch TV or just sit and talk.

"We have a few loyal customers, but not enough local people are patronizing the place."

Fifth Street Dick's plight is emblematic of the challenges faced by some independent proprietors who are attempting to capitalize on the growing African-American involvement in coffee culture. And while local businesses are trying to establish or maintain a foothold in the lucrative industry, higher-profile business names are making inroads into urban areas as well.

From brand-name European-style cafes, kiosks and carts to the distribution of beans and accessories - coffee is a multibillion-dollar business that continues to expand at a remarkable pace. According to the Specialty Coffee Association of America and the independent research group Mintel, the total U.S. coffee market reached $11.05 billion in 2005, up from $9.62 billion in 2004.

Fifth Street Dick's new owners, whom Kent will not identify until the sale is finalized, are promising to give the place a "new young funk." Lucy Florence, owned by twin brothers Richard and Ron Harris, has managed to survive by creating its own niche. Locals still enjoy the old-style coffee experience there, but it now doubles as a cultural center with music, art, movie and political meetings and forums.

"It was crucial that we diversified as a business," Richard Harris said. "A coffee shop is who we are and we're proud of that, but our diverse clientele are also now attracted by different things."

Meanwhile, the Magic Johnson Development Corporation has helped create a Black consumer brand through a partnership with Starbucks Corporation, which operates approximately 8,000 stores in North America and 11,000 store worldwide.

Established in 1998, the joint venture, Urban Coffee Opportunities LLC, has 93 locations throughout the country including Los Angeles, New York, Seattle, Chicago, Detroit, Atlanta, San Francisco and Washington. Its goal is to open 125 locations.

The initial focus of the company has been in African-American and Hispanic communities. The stores look like other Starbucks cafes but reflect the character of their neighborhoods. Each shop also features a framed photograph of Earvin "Magic" Johnson and co-branded items such as a special mural and a plaque signed by the NBA Hall of Famer.

One of the newest stores officially opened two months ago at the new Coliseum Mall on Crenshaw Boulevard, and the Ladera Heights Starbucks was featured in the romantic comedy "Something New," starring Sanaa Lathan.

"I'm addicted to the caramel macchiato," said Pamela Burton, while enjoying a recent Sunday-afternoon drink at the Ladera Heights store with her friend Denise Nichols.

Both women - one a senior account director for a multimedia company, the other a radiation therapist - are well within Urban Coffee's diverse target market.

"I think the whole cafe vibe is great way to meet and talk to people," Nichols said.

Although only a handful of cafes are Black-owned, their numbers are growing nationally. Along with Lucy Florence and Fifth Street Dick's in Leimert Park, one such cafe is the Watts Coffee House. Like Lucy Florence, it is supplied by the black-owned gourmet coffee company Howling Monk, which itself has a store in Inglewood.

In Portland there's Stellar Coffee, in Chicago, Intelligentsia Coffee & Tea Inc., in Washington Farley's Inc. and in Atlanta, Cormier Coffee Roasting Company.

Northern California-based Ola's Exotic Coffee and Tea Inc. bills itself as the only vertically integrated, Black-owned coffee company in America. The specialty coffee roaster, franchiser and importer currently operates three quick-service coffee houses in Oakland, Stockton and Milpitas, where it is headquartered.

Founded by 45-year-old, Nigerian-born businessman Ola Hassan in 2004, Ola's specializes in harvesting coffee beans and teas from the African continent. The beans from countries like Kenya, Tanzania, Zimbabwe, Uganda, Ethiopia and Rwanda are prized for their high quality.

Hassan's ambitions are lofty, with plans to add 20 franchises in U.S. by the end of the year as well as establishing key markets abroad in Europe, Asia and the Far East.

With profits from its franchises, sales of coffee-related products, coffee equipment and accessories, information systems and related services, he projects revenues of $25 million next year.

"Starbucks make a 120 percent profit margin on coffee," Hassan said. "Although they are the number one brand, they only have 15 percent of the total market, which indicates that this is still virgin ground and ripe for success."

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