Coffee Retailers

Commercial Real Estate Agent with KW Commercial

So who is the 800 pound gorilla when it comes to coffee?  Well, Starbucks of course.  But did you know that Starbucks is in the process of closing 600 locations?  So where is the state of the coffee industry?  According to the SCAA Quarterly Sector Report, the 3rd Quarter of 2009 saw an increase in coffee house sales of 3.2%, 4th Quarter sales increase of 3.5% and 1st Quarter of 2010 with an increase in sales of 4.2%.  SCAA "predicts 2010 coffee sale trends are expected to show noticeable improvements to 2009 results.  Consumers have continued to visit the coffeehouse, even if their spending patterns there have changed with the economic times."  Many people have changed from paying $3.50 for a latte everyday to buying whole beans and brewing their coffee at home.  And coffeehouses are investing in new equipment again, a sign that consumer use is on the rise. 


Good Coffee

So what other changes are occurring in the coffee industry?  Well, Starbucks which is based in Seattle, has recently opened a Starbucks but not called Starbucks on Capital Hill in Seattle.  The location is called 15th AVE, COFFEE& TEA.  Why?  To give the feel of an independently operated neighborhood cafe.  I can see the benefit in metropolitan communities like Capital Hill and the Hawthorne District in Portland; independent communities characterized by originality and proud of being unconventional.     

Any other changes in the coffee world?  How about independent houses offering a variety of coffees from multiple roasters and beans.  However the jury is out to see if the multiple suppliers will have an adverse impact on the profitability of the small shop.  And Starbucksis beginning to offer pour-over brewing, much like the independent operators. 

So who's on the move?  Portland's Stumptown Coffee just went big time, having opened in Ace Hotel on Broadway in Manhattan and McDonald's is offering Wi-Fi at 11,500 locations where they serve its MCCAFE line of espresso. 

BlackRock Vancouver

Blackrock Coffee based out of Southern Oregon is one of the up and coming providers with locations springing up througout the NW. This drive-thru is located in Vancouver, Washington on Mill Plain Boulevard. They serve a great latte and have an eye catching presence with their bold black and red design.





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Joe Sosky is the Managing Director for KW Commercial in Vancouver, Washington, as well as a developer of NNN leased properties.  Give me a call if you have a client who may want to buy, sell or lease a Commercial or Investment property.  Each month we teach people how to become a Millionare Real Estate Investor.  Our Workshops are held in Downtown Vancouver on the 3rd Tuesday of each month!  Email info@jtsinvesting for more information!

Joe Sosky; Commercial Real Estate Associate Broker and Investment Specialist
KW Commercial



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Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Those coffee houses really are the new 7-11 being on every corner. But, I'll stick with my homemade hot cocoa as it is really good with those little marshmallows. (LOL)

Jun 07, 2010 06:22 AM #1
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Joe Sosky

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