| Like
selecting the variety of coffee beans and the
type of roast, deciding which espresso/brewing
and roasting equipment will be used in your coffeehouse
is crucial to the end product--a quality cup of
coffee.
However, choosing equipment
from all the various manufacturers that sell espresso
machines, for example, can be complicated, if
not downright confusing. After all, how do you
know a La Marzocco from a Brugnetti or the benefits
of a two-group machine vs. a three-group?
Well, that's what questions
are for.
Fortunately there are various
sources from trade shows and industry publications
to vendors and, yes, even real live coffeehouse
operators that can provide some of the answers.
There definitely is specific information you'll
want to find out about the equipment, which means
there are specific questions to ask. Just like
the other steps involved in opening up your coffeehouse,
there are some hazards you'll want to watch out
for or avoid altogether if you can.
Of course, you won't really
know how the equipment fits your needs until you
begin working with it. But if you do enough research,
you'll increase your chances of finding the right
match.
One thing is certain, though.
If you like shopping, this next part of your evolving
coffeehouse concept is definitely for you.
DO
YOUR HOMEWORK
Before you even start to
research, you need to know what equipment is essential
at the startup of your business. Focusing on purely
coffee sales, essential pieces include an espresso
machine, a brewer, two grinders (one for the espresso,
one for the brewed coffee) and a refrigerator
for dairy products. If you're going to begin roasting
at the outset, then add a roaster to the list.
When it comes to making your
choices, reading up on the industry and what consultants
say about various kinds of equipment is a good
way to begin the research process. But actually
being able to see the machine and how it works
in person is really the best way for retailers
to research equipment.
"If they can, I would
recommend they attend a retail trade show,"
advises Terry Davis, president of Ambex, Inc.,
a manufacturer of grinding and roasting equipment
in Clearwater, Fla.
Davis says trade shows offer
excellent opportunities for newcomers not only
to view the equipment, but to also meet other
retailers of small, independent coffeehouses and
trade a few industry secrets.
"Pretty much every espresso
machine known to man is represented at a coffee
trade show," says Dave Heilbrunn, show manager
of the Bellevue, Wash.-based Lifestyle Events,
Inc., which organizes Coffee Fest, a smaller trade
show for the specialty coffee industry.
Heilbrunn says that between
15 and 30 manufacturers generally exhibit at Coffee
Fest, which is held three times a year. Attendees
get the opportunity to ask manufacturers about
the features of their equipment and see the equipment
in action.
Aside from the trade show
exhibit, Heilbrunn believes the real benefit of
attending a trade show such as Coffee Fest or
the Specialty Coffee Association of America Conference
& Exhibition is the opportunity to attend
various educational seminars on specialty coffee
retailing. He says the ideal way to work a trade
show is to review the educational offerings first
and figure out how to make best use of your time.
Coffee Fest offers several
handfuls of free classroom sessions covering such
topics as writing your business plan, planning
and creating an effective menu and networking
your coffee shop. Additional specialized classes
are offered at a modest cost. What has been really
popular, Heilbrunn says, is the Specialty Coffee
Business Seminar, a three-day workshop that covers
all aspects of starting up a coffeehouse from
writing the business plan to selecting a site
to negotiating the lease. The seminar costs $550
and is limited to 50 people.
"We come pretty close
to giving you a master's degree in specialty coffee
retailing," Heilbrunn notes.
If your schedule does not
permit travel to a trade show, then spending time
on the phone with manufacturers or perusing their
Web sites is another effective way to gather information.
Another source of perhaps
even more valuable information is the person who
uses coffee equipment every day--the coffeehouse
operator. He'll know the ups and downs of the
machines he uses, whether it's easy to use and
offers consistent products, and why he would or
would not buy another one. Besides, Terry Davis
points out, coffeehouse owners like to talk anyway.
"I talk to other café
owners all the time," says Davis, who owns
New Harmony Coffee & Tea, also in Clearwater.
"That's the best information you can get."
ASK
A LOT OF QUESTIONS
Gathering information, while
perhaps cumbersome, is not so difficult. The hard
part is sorting through it all and trying to make
sense of it all. This is where specific questions
come into play.
"First thing I'd do
is find out how long the company has been around,"
says Glenn Schmidt, vice president of Europa Company,
Inc., a direct importer of Brugnetti espresso
machines and grinders, based in Fountain Valley,
Calif. Schmidt says it's not uncommon for a company
to be around for a couple of years, then move
or close and leave a customer who can't get service
on his machine. "It's good to have a company
that's been established for quite a while,"
Schmidt adds.
Schmidt also advises equipment
shoppers to look at the inner workings of the
machine, not just the "box" that it
comes in.
"Look inside, see what
you're getting. Ask them about the details of
the equipment. How big is the boiler? How's the
service?" Schmidt continues. "How easy
is it to fix?"
Service is, in fact, a critical
issue. Espresso machines are the foundation of
any coffeehouse. But, they are machines, meaning
they do have parts that wear down, which is why
you'll want to ask, "What kind of service
is available? If it breaks down, what's the warranty
on the item?" says Gordon McNeil, president
of Equip for Coffee, a manufacturer of coffee
grinders, roasting equipment and display bins,
based in Burlingame, Calif.
Having a service person available
to fix a machine right away is critical, especially
for an espresso machine. If you're in the middle
of a small town, does a manufacturer have someone
available to be there when the machine breaks
down? Downtime, remember, is not your friend.
One of the reasons why Peter
Pelletier, vice president of Canaltown Coffee
Roasters in Rochester and Pittsford, N.Y., chose
Nuova Simonelli espresso machines for his two
locations was, "We found we could get service
on these machines very quickly," he says.
Pelletier chose not to get the maintenance agreements
with the manufacturer. Instead, he has a local
service man come out to check the espresso machines
on a regular basis.
"It's kind of a monthly
thing," Pelletier says. "We have him
out once a month whether we need him or not."
Asking for references is
another good way to get information about both
the quality and the longevity of the equipment.
Manufacturers should be able to provide a list
of retailers who are currently using the equipment
and can offer their own independent comments.
But make sure to get enough names in order to
get a variety of opinions.
"Get 50 customers that
you can call, not just two or three," suggests
Augusto Bisani, president/CEO of Bravo Systems
International, Inc., in North Hollywood, Calif.
Gordon McNeil of Equip for
Coffee advises that looking at the equipment in
a retail environment to get an idea of how it
works and how it looks is a good idea. He also
suggests asking about the load time, or how long
it will take for the equipment to be delivered.
You want to make sure you receive the equipment
in plenty of time before opening. Also, to avoid
running into problems with state and local inspectors,
ask whether the equipment has received approval
from a national standards organization.
Beyond that, McNeil says,
"Just keep asking questions. There is no
dumb question."
ASK
YOURSELF ONE MORE
Another question that you
may want to ask is: Should I buy or lease? For
this question, however, only you, or perhaps your
accountant, can provide the answer.
Generally, leasing is more
expensive. "Obviously, there's an interest
rate," McNeil points out. However, because
the cost may be deducted as a business expense,
there could be some tax advantages to leasing,
he adds.
The issue of whether to lease
or buy depends largely on your financial situation.
If, for example, you're starting
off with little capital and you want to spread
the payment out over a certain number of years,
say five, "Then leasing's a good way to go,"
comments Glenn Schmidt of Europa. "If you
have all the money to start off with, why pay
the interest? Just pay for it outright."
BE
CAREFUL
Dealing with the unknown
is never easy, and it's no different with buying
equipment--which means there are pitfalls that
you need to maneuver around. Three traps include
overspending, underspending and buying inferior
equipment.
Watch out for salesmen who
will try to oversell, says Terry Davis of Ambex.
Davis says an overzealous salesman may, for example,
try to sell you a three-group espresso machine,
when a two-group or even single-group machine
will suffice.
"There are some darn
good salesman in this industry," Davis comments.
The cost difference is not
insignificant. Davis estimates that a single-group
machine runs between $3,000 and $3,500 and a two-group
costs between $6,000 and $6,500. Meanwhile, a
three-group espresso machine is about $9,000,
he says.
"Most coffeehouses in
the United States need a two-group automatic,"
espresso machine, Davis figures, adding that three
group machines are more cumbersome to operate
because the baristas are standing shoulder to
shoulder.
Overspending on features
that you don't need is kind of the opposite of
another pitfall--being lured by discounted prices.
"The first thing I would
tell anybody is don't buy something based on price
alone," says Europa's Glenn Schmidt, "because
if something's cheaper there's usually a good
reason. I mean people aren't selling machines
that are more expensive for no reason. You're
either getting better equipment, (or) better service,
that kind of thing."
Purchasing used equipment
is also very risky, say manufacturers. For one
thing, you don't know what condition the equipment
is in or how well the previous user had maintained
it.
"You have to get equipment
that is reliable," says Augusto Bisani of
Bravo Systems.
Davis advises coffeehouse
owners to buy their equipment from the manufacturer
or an authorized dealer who can service the product.
With used equipment, he says, you have no real
way of knowing what's wrong with the machine.
Plus, a new product is under warranty; if you
have a used machine you may be able to get service
over the phone from a manufacturer, but you would
need to pay a repairman to come to your store
to fix the machine, which can run from $30 to
$40 an hour, Davis adds.
"Don't buy used,"
Davis warns, because when the machine breaks down,
"You have no one to blame but yourself."
ESTABLISH
TRUST
Attending trade shows, perusing
Web sites, reading articles and visiting with
café owners are all effective strategies
in conducting a search for the appropriate espresso/brewing
equipment.
This whole step may sound
like a nuts-and-bolts process. You figure out
your needs and then compare the features and prices
of one machine to the next.
There's one aspect of the
process, however, that's more difficult to measure
because there's no price tag on it. But this part
of the equation definitely needs to be considered,
which means there's one more question you may
find yourself asking: "How do I know who
to believe?" says Dave Heilbrunn of Lifestyle
Events.
You can probably expect that
every manufacturer in your research will say its
product is better than the next guy's because
... fill in the blank. The goal is to find a dealer
who will take the time to understand your needs
and explain how the machine he's representing
matches (or doesn't match) those needs. While
price and features are important, the comfort
level you find with an equipment dealer just may
be the deciding factor.
"I guess it's
a relationship as much as anything," Heilbrunn
adds. "Find people you can trust."
Copyright
© 1999-2002 Adams Business Media, Inc.
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