July 5, 2009
Coffee Hits All The Right Spots
It can be said that coffee definitely hits the spot. In fact coffee hits a lot of spots! People all over the world enjoy a daily cup of coffee. Japan, for example, ranks number 3 in the world for coffee consumption. There are over 10,000 coffee shops and kiosks to cater to the needs of Tokyo alone. The Japanese even use coffee to get rid of spots! For reducing wrinkles and improving their skin, the Japanese have been known to bathe in coffee grounds fermented with pineapple pulp.
No matter how you like your coffee, whether it be black, frothy cappuccino, latte, espresso, hot or on ice, the selections available to tempt your taste buds is enormous. The average annual coffee consumption of the American adult is 67 gallons, over 600 cups. In fact, specialty coffee sales are increasing by 20% per year and account for almost 8% of the 18 billion dollar U.S. coffee market. Statistics show that among coffee drinkers, the average consumption in the US is around 2.3 cups of coffee per day. Also, studies find that over one-half of the population, equivalent to approximately 150 million Americans, now drink specialty coffees on a daily basis.
There are currently around 38,000 independent coffee shops around the United States, with an average $27 billion a year in sales. Based on market research, there will be approximately 50,000 or more independently owned coffee shops in the US by the year 2011. An aspiring entrepreneur might consider the specialty coffee business as a golden opportunity.
Gourmet coffees, also known as premium or specialty coffees have an attractive gross profit margin, compared to traditional brewed coffee sales. For example an espresso based drink may retail in a coffee shop for an average price of $2.85, while the average price for brewed coffee is $1.38. Your gross profit margin is approximately 77% on each, thus you would make $2.20 on a frothy creation and only $1.06 on a brewed cup. Your espresso machines and other equipment may run a little more; however, the additional profits are well worth the added capital expenditures.
Coffee is grown commercially in over forty-five countries throughout the world. Brazil accounts for almost 1/3 of the world’s coffee production, producing over 3-1/3 billion pounds of coffee each year. Over 5 million people in Brazil are employed by the coffee trade. Most of those are involved with the cultivation and harvesting of more than 3 billion coffee plants.
A bit of coffee trivia: Independent coffee shops manage to sell 38% of espresso-based drinks, while the rest is brewed coffee. 65% of all coffee is consumed during breakfast hours, 30% between meals, and the remaining 5% with other meals. Women say that drinking coffee is a great way to relax. Men say that coffee helps them get the job done. (Men are from Mars, women are from Venus.)
More than half of all Americans, 18 or older, drink coffee every day. This equates to approximately 150 million daily java drinkers. 30 million American adults drink specialty coffee beverages daily; such as mocha, latte, espresso, cafe mocha, cappuccino, frozen/iced coffee beverages, and so on.
Coffee sales are continually rising year after year. And so are the pricing modules! Coffee is the second largest commodity traded, next to oil. If you are looking for a business to get into, coffee is probably the best business for you to consider. Can you think of any other product that has such universal appeal, is easy to get into, and is relatively simple to operate?
Filed under Coffee by Michael Stadneck
June 29, 2009
Specialty Coffees Are Taking the World by Storm
Specialty coffee is a matter of choice, not a beverage of chance. The definition of specialty coffee or gourmet coffee begins at the origin of coffee, the planting of a particular variety into a particular growing region of the world. Specialty coffee is distinguished by quality rather than volume. Therefore, higher grades of coffee have typically been grown on smaller farms using more natural methods of cultivation. Gourmet coffee is a booming business in the U.S. Just looks at the ubiquitous Starbucks, whose net revenues were up 22 percent in 2007 on sales of $7.8 billion. And now it appears that McDonaldss is positioning itself to capture a piece of the specialty coffee market on a global scale.
Espresso: Surprisingly enough, espresso coffee is already one of the most popular coffee drinks in the world. It is also the basis for specialty drinks like Cappuccino. Espresso coffee is regular coffee, brewed and consumed at very concentrated brewing and drinking ratios. It is brewed much faster than regular drip coffee. Since the hot water is quickly forced through the fine grounds it usually only takes between 25 and 30 seconds to brew a cup of espresso.
Cappuccino: A cappuccino is a mixture of espresso, a little steamed milk and a little milk foam. The milk/foam ratio is up to you what you enjoy most. Cappuccino is a remarkable thing. An incredible exercise in doing something absurd within the browser client. Cappuccino is almost everybody’s favorite drink. People try to make it at home, sometimes unsuccessfully.
A Cafe Latte equal parts espresso and steamed milk. The steamed milk is poured over the espresso. Remember, the order of building the drink is important. A latte is basically a diluted cappuccino with almost entirely steamed milk and a dollop of foam on top. Cafe latte is simply the Italian words for “coffee and milk”.
A Mochaccino is simply equal parts cappuccino and chocolate syrup. Some of the finer coffee houses prefer the term Cafe Mocha, using a powdered cocoa mixed with diluted cappuccino and topped with a whipped cream dollop. This is a very popular alternative to a traditional hot chocolate drink, neither as thick nor as sweet.
Cafe Amricano or simply Americano is a style of coffee prepared by adding hot water to espresso, giving a similar strength but different flavor from regular drip coffee. The strength of an Americano varies with the number of shots of espresso and the amount of water added.
Now here is an interesting variation which would probably be more appealing to American consumers; cafe corretto. This is an Italian espresso that is modified by adding grappa, an Italian liqueur or brandy. This results in a coffee beverage that provides a distinctive flavor sweetened by the addition of the alcohol. When making this beverage, any liqueur can be added to the espresso to modify the taste. This drink is typically served as an after dinner drink. Its main purpose being to aid in digestion of heavy meals.
Knowing how to prepare gourmet coffee drinks is a fine art. A barista is someone who makes espresso drinks for a living, and is usually highly trained and has a thorough understanding of how to work with coffee. Similar to a bartender, a barista specializes in making drinks from almost any incarnation of the coffee bean.
Filed under Coffee by Michael Stadneck


