Small coffee shops hang on to loyal customers

Aug 25, 2008 (The Macon Telegraph - McClatchy-Tribune News Service via COMTEX) -- SBUX | Quote | Chart | News | PowerRating -- Aug. 25--While coffee giant Starbucks tries to remake itself, midstate independent coffee shops are trying to keep loyal customers coming back as consumers become more frugal.

As many in the service industry are struggling, Scott Long, managing partner of Joshua Cup on Washington Avenue in Macon, said his business is doing well. "Coffee is not that bad because it's a comfort food. The amount of people coming in really hasn't stopped."

Some coffeehouses have added to their offerings in order to attract customers looking for more than a cup of joe.

The Joshua Cup, which opened in December 2000, has long been popular with college students because of its location, but it added a lunch menu last fall to offer more variety and to appeal to a year-round customer.

"We were known as a college place, and my goal in the last 12 months was to localize the place," Long said.

One advantage independent coffeehouses have over chains such as Starbucks is they can offer fresher roasted coffee, because they either roast it themselves or use local roasters, say Long and other midstate coffee shop owners.

Seattle-based Starbucks announced in July it plans to close about 600 stores or about 5 percent of its U.S. stores. Starbucks is set to close its store at Dublin Mall in Dublin, and on Eisenhower Parkway and Bass Road in Macon.

Analysts say consumers remain loyal to the brand, not a specific location. Independent shops are attractive to their customers because they are unique and because of the product they offer.

"People are loyal when it comes to coffee. It's part of their routine that doesn't change from morning to morning," said John Owens, an equity analyst with Chicago-based Morningstar, a leading provider of independent investment research.

Some customers in the midstate like to go where they are well known, Long said.

"We are like 'Cheers' without the alcohol," he added. "The place where everyone knows your name."

Jack Walker, owner of Black Bird Coffee in Dublin, opened a shop downtown in 2005 when there were no other coffeehouses in town. Now one of the two Starbucks in town is set to close, and he's moved into a shopping center on Bellevue Road with a drive through.

He owned a coffee shop in Los Angeles for a short time before selling it to Starbucks, he said.Walker's learned a lot about what attracts customers.

"When I first opened, I thought it was the atmosphere -- a little more bohemian ... but I found it's not really that," he said. "It's the community and the owner's presence in the store."

The other thing that sets his shop apart from Starbucks and other chains, is that he's a small-batch coffee roaster, so the coffee is fresher, he said. He also carries a lunch menu for customers.

Walker's not particularly happy that one of the Starbucks' stores is closing.

"It would be good for me if they close, but not good for the economy," he said.

In fact, on Sundays, when his store is closed, he goes to Starbucks for his jolt of java, he said.

Stephen and Kathy Pollitt opened their Warner Robins coffee shop in April 2006 and while other coffee shops there have opened and closed since then, Prinnie-Mack Coffee Co. has hung on.

But it's not easy.

"So far my husband and I haven't quit our full-time jobs," Kathy Pollitt said. "We've been funneling lots of personal money into the business to keep it afloat so far. ... It's been really tough."

She's a nurse, and her husband is a physician's assistant.

A company like Starbucks can buy in such mass quantities that it can sell its coffee for less, Pollitt said. While her prices are fairly competitive with Starbucks, it's hard to compete with much cheaper coffee offered at convenient stores or fast food restaurants.

"But we have hung steady on our quality standards," she said.

Prinnie-Mack also offers lunch to attract more customers, and it is about 50 percent of the business, she said.

The coffee shop is across Watson Boulevard from the Houston Medical Center and many of its employees come over for coffee and lunch -- even though workers can get free coffee at the hospital.

"We know hospital people and we know their mind-set," Pollitt said. "People love to be able to get away, and we try to make our environment different from the hospital ... by creating an inviting environment. We have developed a pretty good customer base.

"Prinnie-Mack soon will be offering something extra and perhaps attracting a more diverse customer.

"We just got approved for an alcohol license for people who may want coffee with a shot of Baileys," Pollitt said.

The Sacramento Bee contributed to this article.

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