Local coffee sales perking
04.07.2008 05:01
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- Source: JS Online
Sales at Milwaukee-area coffee houses continue to percolate as java jackets slip onto more cups, and household coffee pots are filled with more locally sold brew. Sales at some locally owned shops have risen from 0.2% to 10% for the first half of 2008 compared with the first half of 2007. Such increases may come as a surprise after Starbucks Corp. announced Tuesday that it will close 600 underperforming stores through fiscal year 2009. Oversaturation has plagued the Seattle-based chain, whose stores can appear multiple times in the same few blocks. According to analyst John Staszak, trading down, or buying cheaper products to maintain a similar quality of life amidst rising prices, may be one factor. He monitors consumers' discretionary spending, including the dollars going to the food and beverage industry, for Argus Research Company in New York. "One of the most powerful consumer trends is trading down," Staszak said. "One reason I believe (local shops) are doing so darn well and Starbucks is waning is that they're less expensive." Unwilling to forgo java jaunts, consumers across the country are looking for cheaper ways to help them weather the economic storm. "Eating out is a part of our lives" that few people are willing to give up, Staszak said. An informal survey of three local coffee shops showed that a small cup of house brew can be 43 cents to 10 cents cheaper than a similar cup sold by Starbucks. For bean sales, consumers may pay anywhere from 46 cents to about $3.50 more for a pound at Starbucks compared with the local stores. Local owners, baristas and bartenders offered other reasons why their sales continue to climb. Stone Creek Coffee Roasters, where sales increased 6% from the first half of 2007 to the same span for 2008, has also seen its customer count decrease by 2%. But this summer, the company is catering to customers who stop in less frequently but contribute to its rising bean sales. Those taking "staycations" in Milwaukee instead of vacations elsewhere can visit five Stone Creek stores and get a free half pound bag of coffee. Stopping at all eight shops earns a free one pound bag. At Anodyne Coffee Roasting Co. at 2920 S. Kinnickinnic Ave. in Bay View, sales are up 10%, even after a difficult winter. Owner Matt McClutchy, who opened the store in October 2006, attributes his success to the novelty. "I think that's because I'm a new store," he said. "It's the new customers finding the place that helps a little bit." On the east side, the owners of Comet Caf at 1947 N. Farwell Ave. looked toward a new business model after some stiff local competition and a clientele that was growing up. Three years ago the shop was renovated to include a restaurant and a bar. "We've had to adapt," said bartender Andrew Menchal, who has worked at Comet for eight years. While most of the restaurant's revenue comes from other items, sales of non-alcoholic beverages, including coffee, are up 0.2%. Rochambo Coffee and Tea House, where sales are up about 10%, has served customers along Brady St. for about 13 years. Owner Melissa Honkamp said she doesn't think the Starbucks closures are an omen for independent coffee stores. "It's not just a place where people come and take away their coffee," she said of the shop. "There are no clocks on the walls. People have met there and gotten married. You can't write that into a business model."
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