Starbucks in decline · Sunday November 18, 2007 by colin newell
Walking through downtown Vancouver on a rainy November day, I cannot help but think that the precipitation has a familiar flavor to it…
Coffee. Yes, coffee.
Is it possible? Well, if one particular North American city has coffee on the mind (and in the air), it is most certainly Vancouver, British Columbia.
And if you walk as briskly as I do, it is entirely possible to pass 7 Starbucks locations in less than 3 minutes – more of them if you are creative – i.e. in a panic or running from a failed bank robbery or something.
But how busy are the Starbucks these days? Especially considering that Vancouver is now the hub of specialty coffee central in North America. Like London, England in the 16th Century, Vancouver has cafes for business people, for geeks like me, for artists, for construction workers, people on the move, people at rest… heck there are cafes in hospitals and bookstores… everywhere it seems.
What the numbers are indicating is – Starbucks is in a modest decline. A 1 percent drop in traffic at stores open at least 13 months marked the first time the company has seen such a decline.
In a recent earnings report it was revealed that Starbucks shares fell more than 9 percent, or $2.25, to $21.90 (U.S.). Amazing?
Maybe not. It is possible that Starbucks international may have mis-read consumers desire to have the one-brand experience where-ever they go.
Here is some classic Howard Shultz – C.E.O. of Starbucks:
Chairman Howard Schultz said coffee drinkers who try out cheaper competitors will upgrade to Starbucks.
“Those consumers over time are going to trade up. They’re going to trade up because they are not going to be satisfied with the commoditized experience or the flavor,” he said.
Commoditized experience, Howard?
Let’s let our readers sort out the utter irony of this statement!
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Life on the 49th Parallel · Thursday November 15, 2007 by colin newell
Life for Mike Piccolo, of 49th Parallel Coffee Roasters in Vancouver must seem idyllic. Having been a chef for over 20 years in the Vancouver food community, his departure from that World into the World of specialty coffee must have come with some surprises.
Food World, it would appear, is all about the hours. A short day in Chef-land is about 10 to 14 hours… a day… sometimes everyday… for weeks. Heck, I have a hard enough time focusing for 7 hours on anything. I did write for 7 hours once… but not in a row.
Mike Piccolo, on the other hand, is a study of youth and patience. In a business that seems to gain more energy everyday – it’s a wonder that he can find solace in this choice of career. But he does.
Specialty coffee is the rising star in North America right now – as it has been for the last 10 years or more. The kind of energy that fuels the likes of 49th Parallel Coffee roasters, Ethical Bean in Vancouver, Hines Coffee (and others) knows no bounds. And yet family run companies like Murchie’s fail to harness this phenomenon – and ultimately fail.
So what does Mike Piccolo and his family have that the others do not? Simple; Generosity, family values and a scalpel sharp business acumen to boot.
Mike is part of a family circle that includes Vincent Piccolo, the elder brother and Sammy Piccolo, the younger. They are the creators of Cafe Artigiano – a family success story. And although these Boys are all different and talented in their own special way, their assorted gifts compliment each other in such a way as to give them the Midas touch.
Mike Piccolo’s day job is attending to the coffee roasting facility. At the heart of this operation is a coffee roaster that can roast about 160 pounds of coffee at a time – in a rough measure, that is a burlap bag of green coffee every 25 minutes or so. The facility is a blend of the old and the new. A conveyor system loads the roasters hopper in about 6 minutes or so. The load of coffee can be manually or automatically dropped into the roaster by a proprietary computer system. The roasted coffee is quickly cooled and collected through a column of air through a device called a de-stoner. Believe it or not, despite the rigorous inspections that green coffee goes through, there still is the odd rock, twig or bottle cap that gets in the mix – and you do not want to run a bottle cap through your burr grinder, trust me!
The roaster is gas fired – which in itself is a fairly clean process. But roast coffee is a very aromatic thing and even small amounts of the smoke can carry in the wind a long way. As a result, 49th Parallel run an afterburner that incinerates a lot of the particulates in the exhaust gas that would, well, make the neighborhood smell like coffee – all of the time. It is also more eco-friendly to do this – and it contributes greatly to the overall cost of the product.
But that is what you do when you want to be the best.
So, Mike Piccolo takes all this in his stride. One gets the impression walking around the facility that this is a totally family oriented operation. Everyone seems happy and busy.
For Mike Piccolo, his World begins after 7 in the morning and he may start to wind down later in the afternoon. A far cry from the World of Chef-land by a long shot. He has a young family to think about and life is more about Dolce Vita that making a killing overnight.
I think his brothers might agree. I sampled several coffee at the 49th Parallel Cafe on West 4th in Vancouver while Vince Piccolo looked on. If it is possible for Vince to be interested in something other than his satisfied customers, it could well be his staff and the environment in which he works.
The staff at 49th Parallel represent the ideal in coffee World. Beyond the basics of good pay and some benefits (oh yeah, and a great work environment) they are the messengers of the specialty coffee medium. They are fully engaged, informed and 100% dedicated to customer satisfaction and customer education.
As I sipped their single origin espresso, an Australian called Mountain-Top, I could not help but be somewhat skeptical and sardonic. I reminded Vince Piccolo that Australia is not the ideal growing environment for coffee. Needless to say he was quick to shut me down – and rightfully so. Open up your mind Colin, he was saying symbolically… Open up your mind.
In over 30 years of playing with and writing about specialty coffee, I think what I do know could fill an 8 ounce Euro Cappuccino cup at the 49th Parallel Cafe… and what I do not know could fill a 70kg Bag roaster.
But this is what the Piccolo family are all about – Customer Satisfaction and Education.
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Murchie's on the block · Friday November 9, 2007 by colin newell
In 1975 I got one of my first introductions to specialty coffee via Murchie’s of Victoria. My Brother-in-law bought me a bag of Dark French coffee. At 15 years of age, I was in for a bit of a shock. This was not what I was accustomed to… but it would set the wheels in motion for what would be a future endeavor for me.
Coffee. Coffee, coffee, coffee.
Here in the 21st Century, the old Murchie’s firm is now on the block… for sale… to the highest bidder I guess.
But why?
The Receiver-manager of Murchie’s Canada blames the firm’s demise on increasing material and labor costs.
Right. In a red-hot economy where everyone is doing terrific thank-you very much, we can blame labor and material costs.
Let me see. The raw materials, Tea and Coffee can still be purchased for cheap (if you bypass the Fair Trade options — much as Murchie’s has me-thinks) and then you mark them up 200 to 400%. The result: Profit.
Labor costs are at something of a historic low in B.C. – the minimum wage being something under 9$/hour.
So. What is the real deal here?
I think Murchie’s have been sitting on their hands for so long and have entirely lost touch where specialty coffee has gone in the last decade. Visiting a Murchie’s today is like jumping onto an episode of the Time Tunnel. For you Gen-Xer’s, it means that Murchie’s lives within a temporal time bubble – somewhere in the late 1800’s. They are out of touch with modern coffee commerce and the new reality of better coffee served by people who know coffee.
Murchie’s: I wish you luck!
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Save the World buy a cosy · Tuesday October 9, 2007 by colin newell
Ever notice that while you are driving hundreds of miles from civilization that there is coffee detritus everywhere you go? I mean, why did I see a paper coffee cup wrapper out on a rural highway miles from anywhere?
Fact is, people pitch waste from their cars because they are lazy and need a great big wake up call. Hello – the World around you is not your personal dumping ground – that is what your house or apartment is for.
Here is the solution – invest a few coins in a re-usable and environmentally friendly coffee cozy cup wrapper.
Stop with the pollution. Stop with the corporate shill. Do the planet a favor and buy one of my friends hand knitted coffee cozies.
Please.
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Best coffee is in Victoria B.C. · Friday August 17, 2007 by colin newell
As a semi-professional observer of the Specialty Coffee phenomenon in North America, I meet a lot of very passionate people – I mean, the very best of the very best. And some of that most intense passion is right here in Victoria B.C. Canada.
Buon Amici Cafe owners Derek and Gina Lucas have all the qualities of virtually any randomly selected successful business people: They are intensely passionate about coffee, its origins, the people in the industry and yes, their devoted clientele.
Buon Amici’s Coffee at 110-645 Tyee Rd. is the home to Western Canada’s best barista. Derek has the experience and energy to back up the challenge.
Derek Lucas was one of three Victoria area coffee experts to claim bronze, silver and gold at Wednesday’s Western Regional Barista Competition in Vancouver. Vancouver might have the rep, but the numbers reveal that it’s Victoria that’s ground zero for best of bean in Western Canada.
In past conversations with Derek he has revealed “It is not enough to have a reputation as a good cafe – you need to deliver time and time again without fail” he said, taking out a moment to pour personal latte art at a surprised customers table.
The recent Vancouver event places 12 skilled baristas against each other to claim a trip to Toronto for the Canadian championship. The fact is, barista competitions are now a big deal and they are international. A Vancouver victory is only one step in a growing list of internationalization in coffee World.
Here is the skinny on the competition: Each coffee expert is given 15 minutes to prepare four servings each of espresso, cappuccino and a signature drink for a panel of judges. Competitors are judged on taste, speed, design, creativity and showmanship.
I watched contestant Paul Reimer (of Discovery Coffee) in the weeks leading up to the event. He is a picture of youth, a University of Victoria student in Computer Science Engineering as well as one mature dude with an air of wisdom beyond his years “This is the pinnacle of my career this far – going up against so much talent” Reimer offered as he brought sample after sample of his best drinks for me to taste..
Amongst the best that Victoria has to offer, I could not help but feel that there was a Fifth Element that gave the Victoria crews a distinct edge.
Silver medalist Logan Gray of Discovery Coffee, Victoria gave me a hint, “We work together and play together sharing some of our secrets…” Discovery owner and partner John Riopka offers the following: “You can take the best that HABIT Coffee & Culture, Cafe Fantastico and Buon Amici’s has to offer and find some of that energy here. It is positive and friendly. We can only do better if we cooperate.”
And cooperate they do. Discovery Coffee is part of an amazing program called “Cup of Excellence” — it has international roots in the coffee growing regions and brings fairness and justice to those that toil the hardest in the industry – the farmers.
“(On some level) people like Sam Jones (owner of 2% Jazz espresso bar on Douglas Street) are more partner than competitor… fellow messengers (if you would)” Shane Devereaux infers. Shane manages Habit Coffee and Culture on Pandora avenue and sees opportunity for virtually limitless growth in the city. Sam and Shane as if one person, “Coffee is like wine. No one hesitates spending 7 to 12 dollars on a glass of good wine.” I agree. One day more and more people will be better acquainted with the similarities between fine wine and great coffee.
Habit Coffee and Culture hosts weekly coffee tasting (cupping to be precise) on Tuesday afternoons at 522 Pandora Ave. It is a somewhat more relaxed and informal version of the staid cupping that goes on in the varied brokerages and green coffee clearing houses. Rows of cups are lined up with samples of ground coffee. Ground coffee is splashed with hot water. Coffee is allowed to brew and then tasters are turned loose in the ritual of sniffing, slurping and spitting – a dance only truly understood by the initiated. It’s fun and informative.
In the weeks leading up to the Barista competition, I skulk in the background watching the creme de la creme of Victoria’s coffee scene hone their skills. From time to time I get offered a great drink to express an opinion on. I am always impressed and excited at the level of energy here, the generosity and humility. And so it goes. There is something truly amazing happening in the Victoria coffee market. If you live here, get out and order a drink. If you are visiting, make sure you get in some of the action.
Colin Newell lives in Victoria B.C. Canada and finds himself at Ground Zero of the specialty coffee revolution.
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