MAHONING VALLEY Coffee break: Shops meet growing taste for specialty brews



Both longtime coffeehouses and new entrepreneurs have expansion plans.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
"Cappuccino to go" is a phrase some local coffeehouses expect to hear more often.
Despite the closings of a few small shops recently and the arrival of industry giant Starbucks, some local coffeehouse owners think now is the time to expand.
"This area is really starting to take notice of specialty coffee," said Chris Cole, part-owner of Peaberry's, which runs three area coffeehouses.
The Mahoning Valley simply doesn't have enough coffeehouses to meet the demand for a properly brewed latte or cappuccino, store owners say.
Peaberry's
Peaberry's is so convinced that people want something more than coffee from a fast-food restaurant that it opened Peaberry's Coffeehouse on Boardman-Canfield Road in Canfield Township in January.
Unlike Peaberry's other locations, the vast majority of the business at the new shop is coffee to go. The coffeehouse only has seating for eight inside. Some customers are regular enough that employees start making their drinks as soon as they pull into the parking lot, Cole said.
The company owns Renee's French Bakery & amp; Cafe, located nearby in Canfield, but some of its specialty coffee customers had asked for a location on the other side of state Route 11, Cole said.
Cole said he thinks Peaberry's may open another coffeehouse in the area soon, but the owners want to move slowly.
The other owners are his father and uncle, Mark and Loren Cole, who opened their first coffeehouse in Boardman in 1993. They closed that shop five years ago when the opportunity arose to open Peaberry's Cafe at Youngstown State University.
Mocha House
Maria Liakaris, one of the owners of the Mocha House, said her family is considering opening another location in Mahoning County because of the success of their 3-year-old Boardman restaurant and coffeehouse. Also possible is a smaller store in Howland, she said.
The family is looking at moving out of its location on Tiffany Boulevard in Boardman to a larger location. More space would allow for a larger kitchen and a more diverse menu, like the original Mocha House in Warren.
Business at the Boardman store has remained strong, however, even with the closing of the Phar-Mor store in the plaza there, Liakaris said.
Not all of the expansion is coming from established companies, however.
Jo to Go
Dwayne Klimenko of Girard and Bill Marr of Poland aren't interested in slow growth.
In March, they opened Jo to Go, a specialty coffee drive-through in Girard, and followed with a second location in Austintown last month. The second store has both a drive-through and seating inside.
Klimenko, a former auto glass installer, said he thinks demand is about to explode in this region, and he wants to move quickly to take advantage of the trend.
"I lived in Oregon, and I saw espresso stands everywhere in the Northwest. I found myself addicted to lattes," he said.
Klimenko said he expects to have 100 stores, including 10 in this area, within 10 or 15 years. The owners have a Boardman location picked out for their third store.
The Beat
At The Beat Coffeehouse next to YSU, there are no expansion plans but business is fine, said Sherrie Mancini, who owns the 4-year-old business with her sisters.
Not all small coffeehouses have had such success.
A few small shops have closed recently, including Koffee Korner in Canfield. John Davis, owner of the 7-year-old store, blamed his slow business on a poor economy, limited parking on the green in Canfield and city restrictions on advertising.
Starbucks
One company that sees potential in the local market is Starbucks, which recently opened two stores in Boardman.
Starbucks, which is based in Seattle, has grown from less than 200 stores to about 5,700 stores worldwide in the past 10 years.
The explosion of Starbucks has both helped and hurt independent coffeehouses, said Mike Ferguson, a spokesman for the California-based Specialty Coffee Association of America.
Some small stores have gone out of business, while others have flourished with Starbucks nearby, he said.
Effect on competition
Independents can succeed near Starbucks because they can attract customers by changing their menu and the ambiance of their store to fit their area, he said. The arrival of Starbucks tends to sharpen the business skills of independent retailers, many of whom either go back to school or hire a business consultant, Ferguson said.
The arrival of Starbucks shouldn't panic a small retailer because Starbucks' marketing creates more demand, increasing sales for everyone, said Armando Escobar, who oversees new store setups for CrimsonCup, a Columbus-based coffee roaster.
If independent retailers have a quality product and can serve customers quickly, they will thrive, he said.
"If a Starbucks opens in the neighborhood, we encourage our customers to send them flowers and welcome them to the neighborhood," he said.
Klimenko said he's willing to follow Starbucks as Jo to Go expands.
"We'll put one right next to them," he said.
Praise for CrimsonCup
Officials at both Jo to Go and Peaberry's credited CrimsonCup with their recent successes.
Cole said Peaberry's picked the Columbus company as its roaster three years ago because of its commitment to quality and its customer service.
Recently, a group of YSU students asked for chocolate-blueberry coffee. Cole called and asked CrimsonCup if such a drink existed and was told, "No, not yet." Soon enough, they came up with a blend and it has sold well at YSU, Cole said.
For the newest Peaberry's, the president of CrimsonCup visited the store site and talked with the owners about menu items, decor and marketing.
Klimenko said he and his partner revised their plans for the first Jo to Go store after talking to CrimsonCup officials. Their best advice was to move their espresso machine closer to the drive-through window to make operations more efficient, he said.
"They way we had it would have been a disaster," he said.
CrimsonCup also advised Jo to Go to offer all its products for free on its first day of business. The Columbus company sent people to help Jo to Go employees keep up with all the business created by that offer. It cost some money to buy the extra coffee beans, but it was an expense that paid off, Klimenko said.
"It was the best advertising we ever did," he said.
Cole said the increasing popularity of specialty coffee also benefits people who prefer a simple cup of black coffee.
"This raises the bar for everyone," Cole said. "Grocery stores and gas stations can't serve swill. They have to have good coffee, but it's not specialty coffee."
shilling@vindy.com