


Bruce Milletto, CEO of Bellissimo Coffee InfoGroup and a leading industry watcher, thinks the company's motivation is more basic: Starbucks is returning to its roots as a comfortable "third place," a living space that goes beyond the home and the office. "People want to have ‘their' coffee bar, and they want to have ‘their' coffee," says Milletto, who remembers when Starbucks was a hip chain of four or five shops. "Starbucks has realized that's a niche they're no longer filling."
Bruce goes on to say, "Once you have thousands and thousands of stores, it's difficult to have consumers look at you in the same way," Milletto says. "I think in coffee, the small independent will always win out if it's doing a fantastic job."
Though the recession has hurt some coffee sales, it hasn't ended
Americans' move toward higher-quality coffee, says Bruce Milletto,
president of Bellissimo Coffee InfoGroup, which provides consulting and
training to the industry. "Our taste buds have memories," Milletto
says. "Once you drink a really excellent cappuccino, it's very hard to
go back even to a chain store that may be using automatic machines."
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Matt Milletto, director of the American Barista & Coffee School in Portland, said coffeehouses should consider raising prices every couple of years to cover the increasing price of doing business. But they should also find ways to absorb some cost increases, like the ones some coffeehouses are seeing now on coffee beans.
"Even if their costs went up $1 a pound to $9, which seems like a big increase, that's translating to only 2 to 5 cents in the cost of the drink," Milletto said. "That could justify a 5-cent increase (in drink prices), but if the retailer is serving a higher-quality product and can bring in five more customers a day, they've covered that cost increase (without raising prices)."
Starting a Coffee Shop Business Podcast
Produced by Startingabiz.com | June 30th, 2009
Bruce Milletto, president of Bellissimo Coffee InfoGroup and founder of the American Barista and Coffee School, offers his insight about how to start a coffee business to podcast host Matt Thomas of StartingABIZ.com. Bruce offers expert advice about getting started, choosing a location, picking the right coffee and espresso equipment, and more. [24 minute podcast]
Click here to listen to Starting a Coffee Shop Business Podcast
For the second time in two months, Matt Milletto, Vice President of Bellissimo Coffee InfoGroup and Director of the American Barista & Coffee School, defends the independent retailer on NATIONWIDE TV! As Matt says, "No, it is not all about price but quality." Click here to view feature on Fox Business News.
| The art of the Latte |
