Archive for Friday, April 6, 2001

Competition in the coffee market heats up

More specialty shops pour into Lawrence’s java jumble

April 6, 2001


Competition among Law-rence's gourmet coffee shops has the bite of a double-tall cappuccino.

Outlets hot to meet the needs of this city's black-liquid connoisseurs have popped up everywhere.

Enjoying coffee drinks at The Bourgeois Pig, 6 E. Ninth St., are,
from left, Adam Coch, Carmen Anello and Ann Turner.

Enjoying coffee drinks at The Bourgeois Pig, 6 E. Ninth St., are, from left, Adam Coch, Carmen Anello and Ann Turner.

New to the mix is a drive-up cafe, Z's Divine Espresso on East 23rd Street; a Starbucks in SuperTarget; and a downtown cyber shop, Cafova. These and others have joined a stable of more than a dozen Lawrence coffee houses that run the gamut of size, design and clientele.

Does the cup runneth over?

"I think, currently, Lawrence is a little oversaturated with coffee shops," said Jason Schreiner, in December. Schreiner is coffee manager of Milton's Coffee and Wine, 920 Mass.

Mark Zwahl, owner of Z's, at 23rd and Harper streets, said basic rules of business economics would determine which coffee houses survived when supply exceeded demand.

"Competition will improve the quality of the drink and the quality of the service," he said. "If anybody is going to fail, it's people who don't pay attention to that."

National market blend

Coffee shops in Lawrence need not reach for a panic button yet, said Mike Ferguson, marketing director for the nonprofit Specialty Coffee Association of America in Long Beach, Calif.

He said the coffee shop industry in most Midwest towns was immature compared with cities on the East and West coasts, which already went through tremendous growth spurts and now face daunting market corrections.

Nationally, about 12,000 outlets are preparing specialty coffee beverages these days, up from 5,000 in 1995.

"We think it will drop down to 10,000 in three years," Ferguson said.

Much of that attrition will occur in coastal areas, he said.

After the decrease, Ferguson said, the number of specialty houses in the United States is expected to grow at a modest pace and return to 12,000 units by 2007.

"We've had a fine adolescence, but it's time to slow down and concentrate on a healthy industry," Ferguson said.

Finding a niche

To survive, Ferguson said, it isn't enough to fill a cup with syrup, mountains of whipped cream or foamed milk and a dash of cinnamon or chocolate. Coffee shops must buy the best coffee and have excellent customer service, he said. Neither is especially easy these days. Buying the highest caliber beans is tricky business and the robust U.S. economy prompts significant employee turnover in coffee shops.

It's also important for stores to find a niche that reflects the community it attempts to serve, he said.

"For example, in Long Beach, in the East Village area, you better have art from locals on the walls," Ferguson said. "If you're in a community with a lot of people working out of home offices, you'll need phone outlets, computers. If you're on the bohemian side, you'll need couches, soft lighting."

Character helps

In Lawrence, shops have assumed a character that helps define clientele.

Zwahl, who opened Z's last April, said his drive-up window catered to morning commuters in need of a quick jolt before darting across Kansas Highway 10 to jobs in the Kansas City area.

"I think that is the niche that needed to be filled," he said. "People have been begging me to set up out west."

Reuben Evans, manager of Bourgeois Pig, 6 E. Ninth St., said his shop appealed to an eccentric crowd, in part because it offers more than coffee.

"We serve alcohol, too," he said. "We have the broadest range of people in here. We get a range from 21 years old to 70 years old."

The non-smoking atmosphere at La Prima Tazza, a fixture for 10 years at 638 Mass., appeals to regulars, manager Laurel Wimberg said.

She considers the mix of coffeehouse culture to be healthy for Lawrence.

"I'm glad to see there is enough room for different places and styles," she said.

Not quite Seattle

Lawrence resident Chris Carr, community relations coordinator at Borders, 700 N.H., said book and coffee lovers could mix those passions at Borders.

He said students at Kansas University provided Law-rence's java entrepreneurs with a deep customer base.

"In a college town, I don't think it can be oversaturated," he said. "People want a place to study."

While it lasts, Carr is getting his fill of Lawrence coffee.

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