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Room for another cup?

Globe and Mail Update

Latest comment posted at 6:20 PM EST 01/07/08

Passionate about coffee, David Cook started roasting beans in a frying pan at home. He first sold coffee at his street's garage sale and was amazed that people paid $10 a pound for it. Sales have quadrupled in one year since he went full-time. His challenges now: how fast to grow the company? Should he embrace outside investors? And where should he focus his marketing? ...Read the full article

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  1. Duncan McCockenue from Canada writes: I love success stories like this, good for him! At least it gives the average critic of capitalism the idea of how hard you have to work to become successful; you dont just start out as a CEO. Im proud to live in a country that (somewhat) allows this to happen without taxing the crap out of success.
  2. Tobin Manley from The Bronx, NYC, United States writes: Ironically, the success of Starbucks catalyzed the growth of independent, high-end coffee producers. Some may argue with it, but SB's has improved the coffee palate of many in the U.S.
  3. john shantz from Canada writes: While an endearing story it is hardly unique. The problem with having a large word of mouth dependency is that it limits you geographically and the fickle customer 'palette' is continually in a state of flux.
    If you are ego-driven to expand, transfer the risk to outside investors before you lose your stake.
  4. Dan Theman from Ottawa, Canada writes: Ontarians are just discovering quality coffee (mainly thanks to Starbucks). Over the next few years more and more Canadians will shift from Tim's to better stuff and there is a hugh room for high end retail coffee business (better than Starbucks). The market for beans over say $12/lb is limited anyways. One interesting niche to explore will be coffee shops that rost beans in store, I have one of this on my street (Ideal coffee) and they are doing quite well.
    One more thing, importing containers directly from south America is easy (may dad used to import coffee from Brasil to Russia without having to visit Brasil even once).
  5. Confused By It All from Canada writes: This sounds like a success story in the making. Yay! However, as many small business folks will attest, it is past time that he was doing it all himself. My advice --- find some experts in tax planning and corporate law, Mr. Cook --- and trust them so that you can stick to the art of roasting, where you are the expert.
  6. wink wink from Toronto, Canada writes: Totally Agree to Confused. He can surround himself with people who are smarter than him in other areas of the operation.
  7. Peter Walker from Canada writes: I wish him the very best. Not being a money man, I cannot offer any advice to that end.
    Starbucks opened on amost every block in Downtown calgary, forced the others out, and have now realised that there isn't the market for that many stores in such a small area!!
    Second Cup has better coffee as far as I am concerned, and I find that the staff are generally friendlier, BUT I suppose that it depends on how regular a visitor you are.
    Timmy's isn't in the same kind of market. So he should have no problem there. I think that 2nd Cup really researches an area before moving in, rather than trying to force everybody else out.

    Specialty coffee houses have a different atmosphere than a coffee shop like Starbucks or 2nd cup and Timmy's, so it is the ambience which will draw the people. I think that he will have to expand to about 5 stores or so, to create the word of mouth that will expand his bean sales.
    BUT
    as I said IF I had the answers I would be a milionaire by now instead of on welfare, injured and broke.
  8. Tristram Shandy from london ontario, Canada writes: "Over the next few years more and more Canadians will shift from Tim's to better stuff and there is a hugh(?) room for high end retail coffee business"

    The majority of people do not have such refined palatesas this would suggest. Don't give up your day job!
  9. R P from Toronto, Canada writes: Once you have tasted the difference btw good coffee and bad coffee - you do become a bit of a coffee snob...

    There is a growing market for real great coffee. no need to worry about having a day job!
  10. lary waldman from Qualicum Beach, Canada writes: In a move that still has not been explained to me, and obviously to your editors, a pound of coffee, is now 400 grams. Perhaps that is why Starbucks has announced it is closing 600 stores. It really doesn't matter what you sell, or in what quantity, location is everything. If you make the best of anything, you can open up on the Northern Coast of the Great Lakes and people will order on-line. That's the twist, no?

    Good Luck.

    Lary Waldman

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