Competition puts coffee shops through grinder

As in popular. More than half of American adults drink coffee every day.

Hot as in big business. Coffeehouses are popping up across the country with regularity.

This can be both a blessing and a curse for the independent coffeehouse owner. Increasingly, owning a successful independent coffeehouse depends on a delicate brew of local flavor and that intoxicating coffeehouse atmosphere.

Consider some of the names of local coffee businesses that have closed in the last year.

Two in Akron, Cafe Boheme on West Market Street and Bru's Brew downtown on South Main Street, closed their doors.

Coco's Coffee Bar on West Market had trouble managing the required local mix. It closed April 22, with a sign on the door telling customers it may reopen.

Owner David Boyer declined to comment on the closing and said the shop's future remains uncertain. ``I'm looking at what's best, talking to people,'' Boyer said. ``There's been interest.''

Scott Brewer, co-owner and president of Brubaker's Organizations, said he had to close Bru's Brew because of a lack of sufficient business. ``We did all right, but we needed more volume,'' Brewer said. ``I think it's tough in the coffee business. The branding of a name is important.''

Brewer has revamped the coffee shop into Banditos, a Mexican bar and eatery that is bringing in a solid amount of business, he said.

Jim King, co-owner of Angel Falls Coffee Co. on West Market in Highland Square, has been in business for 10 years. Even after a decade, he feels unsure about the future. ``It horribly bothers me,'' King said. ``Most people would rather have cheap goods than goods bought in America.''

Eventually there will be no independence among coffee shops, King predicted.

``It's the `Wal-Martization' of America,'' King said. He added that he is not anti-Starbucks, but the reality is the national chain has big advantages over local coffee shops.

Starbucks' rise

The numbers support Starbucks' dominance.

The Seattle-based chain accounts for 73 percent of the coffeehouse market, according to Mintel International Group Ltd.'s 2006 survey.

Consider that in 2000, Starbucks' share was less than 50 percent. Last year, independent coffeehouses accounted for slightly more than 20 percent.

But there is opportunity in the coffee retail business. More Americans are drinking coffee. Last year, 56 percent of U.S. adults had a cup every day, up from 49 percent in 2004, according to the National Coffee Association market research.

Sales at independent coffee shops are growing 5 percent annually, even with Starbucks on the rise, according to Mintel, a research group based in Chicago.

Key factors in success

Capturing that kind of success depends on that delicate brew, with the local flavor being the dominant ingredient.

When considering the impact a large coffee shop chain might have on a local coffeehouse, King said location plays a big part. ``Caribou (on West Market in the Wallhaven area of Akron) is far enough away that it doesn't matter,'' King said. ``If it moved into the neighborhood, then I would be closed in a month.''

King added that having an easily accessible entrance is also crucial. ``Being on the correct side of the street is much more important than a large parking lot,'' King said.

John Balas, co-owner of Cafe Momus near the University of Akron, said people tend to grab a cup at a coffee shop that fits into their daily routine. ``I think coffee places might be like dry cleaners,'' Balas said. ``If it's part of your traffic pattern, then you're likely to stop there.''

Starbucks could be an exception to the rule, Balas said. ``Starbucks may be a true destination for folks. It's got name recognition,'' he said.

Dawn Miller, a barista at Mocha Maiden in downtown Akron, said that business's location in the historic district has helped.

Mocha Maiden is not your average coffeehouse, she said; it features a wine bar and Friday Night Jazz, for example.

Niche needed

Tony Troppe, a developer and co-owner of Mocha Maiden, said the trick to owning an independent coffee shop is finding a niche. ``What happened with Coco's Coffee Bar is they failed to have a diversified product,'' Troppe said.

Mocha Maiden offers local flavor coupled with local arts, Troppe said.

``You need something else. You just can't sell enough coffee with these big boys moving in,'' Troppe said.

Coco's Boyer said he believes in the future of independent shops. ``I have a belief that people want to support local coffee shops,'' Boyer said. ``I think if neighborhood coffee shops can connect with the people, then it can work, but you have to work hard and do it right.''

Boyer said he hopes to see his local coffee shop reopen, whether it's under his ownership or that of someone else. ``I think Akron still has some Akron pride,'' Boyer said.