Cuppys

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Acting on reports of poorly made coffee drinks over the years, head barista Howard Schultz closed all 7100 stores and retrained his staff to pull a ’real shot’, froth milk correctly, and usher in a newer more friendlier Starbucks.

The details of any significant changes have yet to be reported. Where is the buzz on this? Is anyone reporting a celestial taste difference in the coffee?

The day after: Business as usual.

In 2006 Cuppy’s Coffee was formed and is hoping to capitalize on the thirst of specialty coffee drinkers. Dodging potholes and obstacles along the way Cuppy’s Coffee has won awards for its franchise. Building drive-ups, cafes, and kiosk Cuppy’s approved vendor, Elite Manufacturing is dotting the landscapes with coffee stores across America. Elite Manufacturing works closely with Medina Enterprises and Cuppy’s Coffee to facilitate the entire coffee concept experience.

To some people the confusion with Cuppy’s Coffee and another licensing company is understandable.  Assuming the leases, equipment and communications equipment from this licensing company was a complex transaction. Wanting to provide a stable work environment and relying on the knowledge of employees Cuppy’s Coffee also offered position to the staff. Licensees of Java Jo’z in this transaction have no financial or legal association with Cuppy’s Coffee, Elite, or Medina. The distinction between the two companies wasn’t clear by some who had relations with Java Jo’z that was defined in the transaction.

Doug Hibbing, president of Cuppy’s can see why the confusion exists. “We had the same location and phone numbers and a similar logo and this is why they think we are the same company

Starbucks may be closing stores and cutting back on new store openings, but Cuppy’s Coffee looks to me to be making a move. If you’ve been keeping up, Cuppy’s Coffee stores are opening at a fast pace around the country. So far I’ve noticed these locations:

• Mechanicsburg PA
• Oceanside CA
• Temple TX
• Edinburg TX
• Longmont CO
• Kennesaw GA
• Tucson AZ

And that is all within the last 2 months. Do the math, that’s 3.5 stores a month. At this pace look for Cuppy’s Coffee to come onto the radar of many an entrepreneur and investor looking to secure their futures.

As Starbucks scales back, look for Cuppy’s Coffee, Smoothies & More to fill a void left by the coffee goliath’s wake of world coffee dominance. Being the biggest and baddest necessarily doesn’t mean you’re the best. Howard Schultz’s realization of this fact may have come a little to late to regain its respect as a community coffee house.

The Wall Street Journal covered McDonalds’ plans to bring baristas and coffee bars to its 14,000 locations. Writer Wendy Bounds made an interesting observation that McDonalds will compete with Starbucks, but not necessarily the smaller shops.

Starbucks has truly created the coffee industry and made it possible for smaller chains like Cuppy’s Coffee to even exist. It is interesting, however to see how Starbucks has become more like McDonalds in that they have streamlined their processes. Because Starbucks is a public company its decisions are driven by profits. Smaller, locally owned chains like Cuppy’s Coffee can still focus on what the customers want. This means hand-pulling each espresso shot and staying true to the Italian barista-customer experience. I would not call McDonalds move into the coffee market as the saving grace for smaller shops, but I do not think they will not be able to provide what the smaller coffee shops can.

While the smaller shops gain customer loyalty through authenticity and by offering a sense of community, to some customers a cup of coffee is still just that, a cup of coffee. If McDonalds is offering gourmet coffee too, it is just one more option for consumers and it all boils down to location and convenience.