This company has seen sales double nearly every year since its first store, a tiny drive thru hut in Michigan. Almost every store has a drive thru windown, a convenience factor that the owners felt would give them a competitive advantage.
As Northwest employees, the owners had traveled throughout Alaska and the West Coast, where they happened upon drive-thru espresso bars on practically every corner. But when they returned return to Michigan, they noted the lack of such coffee bars in the area. That gave them an idea and a niche to fill.
They were living in Pinckney, MI where a tiny old coffee hut with limited hours stood close to their home. "We went in and made him an offer, and we just couldn't believe it. He said, "sure.'"
They purchased the store for $27,000, leased the land, and opened for business in June 2002 as first-time business owners, putting their 401(k) retirement funds and home equity on the line.
They also spent $40,000 renovating the tiny structure, turning it into a log cabin and giving it a campy feel.
"My youngest had just left for college, so we knew we could live in a car if we lost it all," said one of the owners. "When you have little ones at home, you can't do that."
The other risk was putting a full-blown espresso menu in a location that was selling 75 cent cups of coffee primarily to farmers, but that turned out to be a non-issue.
"We still offer something for a farmer that perhaps only wants the dollar cup of coffee, but also for the yuppie that may want the full-blown cup," said the owner.
They also extended the store's hours, staying open from 4a.m. until 5:30 p.m. on the weekdays and 6a.m. to 5:30 p.m. on the weekends.
Before they opened for business, they made sure everything was in line for future growth. They hired attorneys and set up a structure that would allow them to franchise, and they spent time creating a logo, a website, and operations manuals.
"We went into it with the idea that we wanted to do everything right and have that in place, in case we did decide to franchise," said the owners.
It turns out they did and fast. Before long, customers at the drive-thru were inquiring about franchises, and in 2004 the first franchised location opened in Irish Hills.
Since then, franchises have popped up all over Michigan and the owners are now looking for national expansion.
Franchisees are asked to keep with the campy feel of the store's original design, and a drive-thru location is encouraged if possible.