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Advanced Theories in Coffee Cart Management
An enterprising couple took a chance and turned their academic past into Baltimore's coffee future
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by Robin Angell Carroll

Originally published - July 2000
Specialty Coffee Retailer
Copyright © 1999-2000 Adams Business Media, Inc.


What drives someone to abandon academia and start a coffee-cart business? For Matt and Ashley McCauley, owners of Straight From Seattle Espresso, it was passion for perfectly prepared espresso, coupled with a flair for business.

It was also a response to the seven-year itch--seven years of marriage and the pursuit of academic degrees--that prompted them to make a dramatic change in their lives.

Matt was studying to be a lawyer and Ashley was teaching as a Ph.D. candidate. Their passion drove them 5,000 miles to a place where they were certain they could make a difference. It was a place Ashley used to call home.

Coast-to-Coast Coffee
Matt McCauley's switch from briefs to breves, and Ashley's switch from higher learning to lattes, actually made good business sense. They had been living and studying in Seattle, fueling their coffee obsession by searching the city for the ultimate espresso. They became armchair critics. A visit to Ashley's hometown of Baltimore gave them plenty to criticize. The best a connoisseur could find was a cup of coffee from a bubble-pot at a local cafe or a cappuccino from a 7-Eleven machine.

Ashley, Matt and baby Jake McCauley take a break for the camera moments before their departure to Baltimore. Inside the Ryder truck is the couple's first espresso cart.

In a place where many vendors didn't understand the difference between a latte and an espresso, the McCauleys envisioned introducing the city to proper espresso extraction and milk frothing. It was no coincidence that the place where they would make their impact brought them back even closer to their roots: a university.

Back to School
It all began at John Hopkins University four years ago. Students were frustrated over the lack of foodservice on campus after 4 p.m., and savvy library administrators saw an opportunity to draw traffic into their facility by becoming a host institution to a mobile food vendor. So how did the McCauleys work their way into this relatively new concept?

"There is a benefit to the fact that we were steeped in university life prior to this," says Ashley McCauley. "We drew on our academic backgrounds to write a really great proposal."

That the McCauleys had a clear vision early on of how the host institution and vendor relationship should work didn't hurt either. "There is a dance between a host institution and a vendor," says Ashley. "Ultimately your job is to make the host look good."

Library administrators liked what they heard and soon thereafter, student-named "Cafe Q" was born in the lobby level of the Milton S. Eisenhower library. The low overhead and transience of the coffee-cart business seemed ideal, but was filled with challenges.

"In our first contracts, we had to live by our hosts' demands," says Ashley.

With little more than a corner designated for their operations, maintaining cleanliness and coming up with storage solutions was a full-time job.

The Buzz cart operation at Gilman Hall,
John Hopkins University.

Then there were the competitors. Places like Barnes & Noble were able to provide a cozy place for patrons to hang out while sipping their coffee and browsing through books. "Managing to create a lounging atmosphere with a coffee cart has its limitations," says Ashley. "But we've worked in tables, chairs and couches ... now we have a great atmosphere."

Another challenge has been branding. Matt and Ashley have other cart locations that operate under the name, "The Buzz." The host institutions all have different requirements and each wants their cafe to stand out from the others. "It's just one of the challenges of working within a university environment," says Ashley. "But the trade-off is being a part of this environment."

With a history of consistently exemplary service and exceeding volume expectations--they doubled their projections in the first six months of business--the McCauleys' hosts are finally comfortable with the concept. To an extent, the McCauleys have set the standard for the coffee-cart business at Johns Hopkins. And their profits climb each month.

"We have the highest volume 9-foot espresso bar in town," says Ashley. "Our rent is a fraction of retail and we're catering to folks who really appreciate us."

Expanding on a Good Idea
The McCauleys have grown from one cart location to nine in just four years. Of the five throughout Johns Hopkins University, the original library location remains the most popular, but the location at the Bloomberg Center for Physics and Astronomy merits special mention.

"You'll see world-famous scientists, post-docs and fellows," says Ashley. "Our espresso sales are at about 80 percent at this location. There are some very worldly folks traveling through here, and they seem to appreciate what we do."

Cafe Q cart operation at Milton Eisenhower Library,
John Hopkins University.

The University appreciates it too: a sixth campus location is planned. The McCauleys have won a contract within the new multimillion-dollar student art center, currently under construction. This location will be called "The Buzz Bistro," and will offer items from an expanded food menu, including sandwiches, soups, salads and more.

The McCauleys are undaunted by the prospect of launching into expanded foodservice. They are doing their homework, starting by researching similar concepts such as cafes and coffee bars that operate with space limitations.

"We look back on opening our first coffee cart and know we could do it smoothly now. It's probably the same thing with this. We just have to learn it," says Ashley.

It takes more than just courage to start a business or to enter into uncharted waters, however. Focus, dedication to their vision, and an intense attention to detail has allowed the McCauleys to achieve perfection.

Keeping the Buzz Going
Strong word of mouth has been the best marketing tool for Cafe Q and The Buzz. It has even drawn in people from off campus.

Some of the McCauleys' marketing efforts include a popular club-card program and an ad-coupon program in student newspapers. "We're also launching a new Web site," says Ashley. "The marketing component is still under construction, but the idea is that it will have downloadable coupons."

The McCauleys also post flyers and stay involved with the campus community, participating in on-campus group programs. As for the future of the coffee-cart business, Ashley sees the market as progressing slowly but surely.

"Developing product knowledge is important to the future. Beyond that, we're managing as we grow. Right now we're working on the business--not in the business--training our managers to be professionals. That's our challenge for right now along with writing an operations manual."

Consistency and standards are key to continuing their growth, according to Ashley. Those standards in turn are only maintained by hiring great managers and paying them competitively.

Expansion Plans
The McCauleys' espresso is becoming as popular off campus as on. The Buzz is currently in the VA Hospital in downtown Baltimore, with another set to open in the new $3-million atrium of the VA Hospital in Washington, D.C. The Buzz will be front-and-center through its main doors with an opening targeted for July 4. There is another location in the Meadow Mill Athletic Club, and a number of contracts are currently pending for additional locations.

"We came with the vision of impacting the community and raising the bar. We think we have succeeded" says Ashley. "The story of how we grew illustrates how anybody with a vision and a passion for this industry can grow too."


Cafe Q At-A-Glance

  • Background Owners: 2
  • Number of Employees: 45
  • Store Hours: Sunday to Friday--7 a.m. to 11 p.m. Saturday--8:30 a.m. to 9 p.m.
  • Years at Location:3 years
  • Average Customer Count:1,000 drinks/day
  • Average Length of Stay per Customer:about 1 hour
  • Average Check Size:Under $2 (pre-food)
  • Initial Start-Up Cost:$40,000 (realized return on investment in three months)
  • Approximate Annual Revenue:$500,000 for all locations

Products

  • Specialty Coffee Drinks: Matt's Amazing Mochas made with nine imported chocolates, velvet milk and homemade whipped cream
  • Bulk Coffee: No space for bean bins--one or two on display--people know to ask for it
  • Non-Coffee Beverages: Chai and the new tea bag green teas, granita, iced mochas
  • Pastries/Desserts:Specialty Scottish scones, award-winning muffins, low-fat and nonfat French nut breads, sweetbreads, filled and plain croissants
  • Food Menu Highlights:Legendary scones--from blueberry to orange --and ethnic pastries including hamentashen, bobka, rugelach
  • Retail Merchandise:Commuter mugs with logo (created for the library location to avoid spills in computer labs), some beans, syrup

Beyond Business 101
The McCauleys' core philosophies have been applied since the beginning: bring industry standard techniques and outstanding quality to Baltimore's espresso market. Some guiding principles make up their standards and operations manual.

Principle #1: Prepare the drink perfectly every time. "We're in love with properly prepared espresso drinks," says Ashley. "We offer something we love."

Principle #2: Educate customers about the drinks whenever possible. "We watch for quizzical looks from customers looking at the menu," says Ashley. "If they seem confused by it, we ask them what they like to drink. 'Something sweet and milky? How about a vanilla latte?' We customize each drink to help the customer find what they love. Then we teach them how to order it so they can keep getting their favorite drink over and over again."

Principle #3: Service is critical. "Our library location has a huge volume with as many as 40 people in line every hour in between classes," says Ashley. "They don't have time to wait since they have to get to their next class. Our mission is that no one walks away without a drink."

Principle #4: Greeted in 30 seconds, served in 90. "We achieve this by having three staff members at the cart," says Ashley. "One person is at the register writing on cups, six to eight orders at a time, and lining them up for the barista. The barista then must understand time management and efficiencies. A third person is back-up and goes out into the line to take drink orders. With these three key staff members in place, the team is able to vaporize a line." Much of the McCauleys' success comes from the people they hire to handle the job. "We're lucky. Ninety percent of our staff is great," says Ashley. "They help us achieve our core philosophies of business."

Principle #5: Tie the look of the carts together. "We manufacture our own carts custom to the location, but each has a distinct look that ties the carts together," says Ashley. Each has a European, self-contained look. There is a multi-tiered bottle selection featured on a two-tiered shelf behind a sneeze guard. The company logo features coffee colors with bees and a splash of teal for accent. Focusing on what they know has helped them achieve and maintain success. "People ask when are we going to 'graduate' to a store," says Ashley. "We don't want to. This is our niche. It's what we know."

Click to return to the Straight From Seattle Espresso website.

 

Copyright © 1999-2000 Adams Business Media, Inc.
All Rights Reserved. Reproduction Prohibited.
Please Note: Some pictures or diagrams are only available through the printed media.
Originally published - July 2000
Specialty Coffee Retailer.


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