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The Pacific Northwest - Coffee Culture Central

March 7th, 2008 by Mark Harris

You may not see it start. And you may not notice as it catches on and momentum builds. But at some point, when a cultural movement or a trend takes hold and seems to abound everywhere, you may ask how this came to be. Where did this change or shift in our life style come from, where did it get its start. And how is it defined?

Our modern coffee culture in the US is such a phenomenon. How is it that so many of us have replaced the simple cup of coffee brewed in our own kitchens every morning for a daily ritual of $5 lattes and other assorted fancy espresso drinks. And we’re perfectly willing to shift and adjust our daily routines and morning commutes to incorporate these coffee drinks into our lifestyle. Somehow, we seem to have redefined coffee and how we integrate it into our daily lives.

If you’re wondering where this modern coffee culture in the US comes from, how it all got started, the answer is the Pacific Northwest, coffee culture central. Between Seattle and Portland, and surrounding cities and towns, the hundreds of distinctive coffee houses and specialty rosteries come together to form a most remarkable and passionate coffee culture phenomenon.

Most are aware that several large and famous retail coffee chains originate from the region including Starbucks, Seattle’s Best Coffee and Tully’s Coffee. And to be fair, these companies have been important drivers behind the expansive coffee culture emergence throughout the US, exporting some of the indigenous and innovative coffee goodness that abounds in the Pacific Northwest.

Well I hate to break the news, but Starbucks doesn’t really define this remarkable coffee culture, at least not today. Starbucks certainly has its roots well founded in the Seattle coffee tradition, but those more influential beginnings go back almost thirty years. See “Starbucks History - A Tale of Innovation in the Coffee Industry“. Today, Starbucks has, by necessity, transformed into much more of a fast-food coffee drink specialist, running an impressive scaled-up operation with over 7,100 stores in the US and over 15,000 stores world wide.

The coffee culture that I’m referring to lives and breathes among the many independent specialty coffee houses and expert premium coffee roasteries that abound in the region. And more important, the passionate and creative coffee artisans behind these coffee establishments that push the envelope and define this dynamic and vibrant coffee culture that continues to evolve. And most important, the enthusiastic coffee customers that frequent these establishments and bring an unmistakable exciting energy to the table.

The best way I know to gain a better feel and understanding of “coffee culture central” is to take a look at some of the influential coffee roasteries and coffee houses that really stand out. And talk about some of the creative individuals that drive and contribute behind the scenes.

Over a series of articles and posts, I’m going to talk about some of the popular coffee houses and specialty roasters that help define coffee culture in the Pacific Northwest. It should be a lot of fun.

So stay tuned. And while your here, why don’t you go ahead and subscribe to the Gourmet Coffee Zone - Daily Blog so you can be sure not to miss out on the upcoming installments.

Posted in Coffee Culture | 2 Comments

Coffee Culture Fading in the Pacific Northwest?

March 5th, 2008 by Mark Harris

A recent article article in the Los Angeles Times, Tea revolution brewing in coffee-saturated Seattle, suggests that recent personnel shake-ups at Starbucks and Tully’s, two major coffee house chains with corporate headquarters in Seattle, might be an indication that the coffee culture in the Pacific Northwest could be shifting in a new direction.

The author sites the recent Starbucks announcement to cut 600 jobs, and the Tully’s announcement of several top executive resignations, as evidence that the retail coffee business continues to be a struggle for these companies. And follows with a segue that perhaps the hot beverage market in the Northwest might actually be shifting away from drinking coffee toward specialty tea.

There is definitely clear evidence that the specialty tea market continues to expand. In fact, this interest and enthusiasm for fine tea has been attracting a growing customer base for some time. Many of the specialty coffee houses and chains also offer gourmet tea products including Peet’s Coffee & Tea, Coffee Bean and Tea Leaf, and many independents as well.

The emergence of tea houses that exclusively offer specialty tea only, no coffee, is not surprising, given the expanding consumer interest and demand. Interesting speculation I suppose, but I think it’s a stretch to suggest that this constitutes a shift en masse from specialty coffee consumption to tea.

Rather, I think the growing demand for specialty tea is more likely cumulative on top of the consistent and sustained demand for coffee.

There’s no question that business challenges exist for Starbucks and Tulley’s. This is probably more indicative of current business cycles, the economic climate, and problems specific to the Starbucks and Tulley’s businesses, than a shift in consumer demand away from coffee over to tea.

With the number of stores at over 15,000 worldwide, and more than 7,100 stores in the US, Starbucks has a formidable shareholder obligation to sustain business growth and expansion year over year. A certain market saturation of their own stores may be a more significant barrier to sustained growth for Starbucks than a softening demand for coffee. After all, how many Starbucks stores can you pack into a single area and continue to have room for new store expansion?

In addition, Starbucks has it’s own problems with respect to product quality and customer satisfaction and the company currently has initiatives underway to improve in these areas. The quality and satisfaction problems combined with the current economic downturn have been attributed to a slight drop off of customer traffic. Nonetheless, in spite of the reduction in traffic, Q4 2007 earnings, revenue and same store sales were actually up year over year.

Problems at Tully’s is a slightly different story. There clearly seems to be a leadership challenge with seven CEO replacements in as many years. The recent resignation of Tully’s CEO John Buller, in apparent disagreement with cutbacks mandated by the chairman and the board to bolster the company’s finances, suggests continued problems for the 140 store Seattle based chain. In fact, the company has struggled to achieve any sustainable profitability for the 15 years its been in business, racking up total losses of over $88 million.

So challenges for Tulley’s aren’t new or the result of some recent shift in consumer demand for coffee. In fact, establishing and growing a larger scale retail coffee chain intending to compete head on with Starbucks is a tough proposition, and this has proven to be true for Tulley’s.

While Seattle has been the spawning ground for several impressive big brand coffee chains including Starbucks, Tully’s and Seattle’s Best Coffee, these corporate chains don’t necessarily continue to define coffee culture in Seattle today.

What truly makes the Pacific Northwest unique for coffee is the number of independent and distinctive specialty coffee roasters and coffee houses that continue to thrive and define innovative coffee culture that is indigenous to the area.

A similar phenomena to Northern California for world renown wine country, the Pacific Northwest including Portland, Seattle and surrounding cities and towns can truly lay claim as the driving force of coffee culture in North America. And this coffee phenomena remains robust and vital today.

The good news is that this coffee culture phenomena is spreading. More and more distinctive specialty roasters, and passionate coffee houses with truly talented baristas are popping up everywhere. And enthusiastic customers are seeking and tracking down these new and exciting coffee experiences, looking for the next level after Starbucks to take their coffee adventure.

Is the coffee culture fading in the Pacific Northwest. I hardly think so!

Posted in Coffee Culture | No Comments