The (Coffee) Chain Gang

"Please show your support for a decent independent going head to head with the chain that is coffee#1"

The above is a quote from a post on a local Facebook page. The poster is setting up a coffee shop in North Street, Bedminster, having failed to get premises on the Wells Road in Knowle, where he would have done well. He will probably still do well in Bedmo, but will be up against stiffer competition (and not just from 'the chain that is coffee#1').

Now, I've never had a coffee in a branch of coffee#1, so I'm unable to comment on their wares but this comment piqued a certain interest in me. Namely: the tendency of thought that says: small business good, big business bad.

Here's the thing: From my viewpoint, the world is not that simple.

Sharp practice, tax evasion/avoidance and poor treatment of staff can all be found amongst small, local, independent businesses as well as large.

On the flipside, some of the largest businesses in the country/world have exemplary approaches to corporate social responsibility and employee relations.

Reducing things to simple binaries is foolish. We all benefit from a mixed economy with different types and sizes of shops/chains, and a mix of differing ownership models. Do I think there is room for change? Hell yes. But do I think large companies have no good points at all? No.

The post above also reminded me of something that has long puzzled me: at what point does a company go from being 'good' (local, independent) to 'bad' (large, corporate, spawn of the devil)?

Whilst many people set up businesses in order to achieve/sustain a certain lifestyle, many more dream of making it big: opening a second outlet, expanding their offering, maybe taking their services to a neighbouring city. Some dream of going national, or international.

Good for them, it's a natural inclination. Sometimes this will be achieved through organic growth, sometimes they will have to seek additional funding: a bank loan, another investor or (cue pantomime boos) private equity investment.

At what point does their bright, shining example of local success become soiled. When do they cease to be a local business with multiple outlets, say, and become a chain?

When they have more than certain number? When they have spread to multiple towns and cities? When they accept funding from unrelated investors?

Here are a few local(ish) examples - where do you think the line to being a big-bad-chain is crossed:

Cafe Grounded - 7 outlets

Caffe Gusto - 8 outlets (including a concession for staff/visitors to The Engine Shed)

Pieminister - 11 outlets (2 'coming soon') plus wholesale distribution to pubs/cafes and supermarket retail.

Boston Tea Party - 17 outlets (2 'coming soon')

Coffee #1 (started in Cardiff, I believe) - 58 outlets

Loungers - 65 outlets, 3 'coming soon', and 13 Cosy Clubs

(For comparison, Starbucks has c. 800 stores, Costa c. 1,800)


P.S. This was going to be a Facebook status update but rapidly grew too large... obviously not good...

The end of the affair... falling out of love with Starbucks

Reader, dear reader, I am heartbroken. Once upon a time, I was in love. Now, no more. The objection of my affection has featured on these pages before. Back in March last year they were wowing me with their enthusiasm and theatricality.

Oh, I knew that their coffee wasn't the best - but I was in love with an idea. A contrived Americana on every corner. Years ago, at the height of my habit, in one store I used to frequent, they would be making my drink before I'd even got to the till. More recently, I enjoyed a weekly treat from Apple's iTunes - an App, or Book, or Song. They called me by name, they even made my previous drink of choice (a Double Tall Caramel Macchiato) into the standard Tall Caramel Macchiato. I felt, well, special...

My cousin and wife may have worked for Costa, the independent café I visited every morning (£2.20 for Latte and Croissant) may make better coffee, but there was still a soft spot in my affections for... No, I can't even bear to say the name.

You see, dear reader, a month or so ago, news broke that my love had managed to arrange their affairs in such a way as to pay minimal tax. Now, there is nothing wrong with arranging your tax affairs so you don't pay more than you need to, or should do. But when you contrive your arrangements in such a way as to pay next to nothing - well, it crosses a line. A subjective, moral line perhaps, but a line none the less.

Despite appearances to the contrary, it now seems they declared losses in the UK in 14 of the past 15 years. A 15 year period of constant and rapid expansion - it seems odd, does it not, to keep flogging a dead horse for so long. Perhaps a shop on the next corner will be the one which makes us profitable...

Of course, all that time, they've reported to shareholders that the UK is profitable and promoted their UK head to a post in their home market. Indeed, they promoted their UK head, Cliff Burrows, to be president of their US business. Talk about reward for failure...

They've tried to win me back. The day after I discovered their dirty little secret, I received a voucher for a free latte (part of the regular reward programme). They've tried to explain themselves here and here. But, dear reader, it's all too little, too late. How can I ever trust them again?

And, like every break up, we need to work out whose stuff is whose. They had £10.40 of mine* - I'll be damned if they're keeping that. I don't think I have anything of theirs. Turns out, I was always the honest one in our relationship.

Now they're trying to make things up HM Revenue and Customs. Seeking to re-negotiate what they will pay tax on - volunteering not to offset the royalties paid to their EMEA Headquarters in the Netherlands against Corporation Tax. How very big of them...

But now, today, comes news that Starbucks are to seek to change the terms and conditions of their employees. They may be giving with one hand, but it looks like the other is ready to take away from their "Partners".

I'm not a fan of "Big is Evil" type arguments, I'm not normally a fan of consumer boycotts either, I know that Amazon, Google, Apple and IKEA (amongst others, and all of whom I have relationships with, such a tart as am I) all have similar practices, but it's time to draw the line. 

Starbucks is, it seems, one of the worst offenders - it's time to take a stand. 

You can sign a Lib Dem sponsored petition here and stop patronising them. Perhaps then they will stop taking us all for a ride.

Andrew

*I've got special dispensation from Stephen Williams MP - the Lib Dem leading the charge against Starbucks - to use up the funds on my card. A Venti Gingerbread Latte and Mince Pie were much enjoyed last week; if you see me with another, that is my excuse...

Coffee as Theatre

Earlier this week I popped into Starbucks (as you do) for a Double Caramel Macchiato to go and I noticed they were advertising a number of drinks branded as "Starbucks Reserve".

The Barista enthused about this select range (there is a choice of three in the UK) of rare coffees and the brewing method used. The range is only available in small quantities in just 10 stores in the UK (six in London, one in each of Manchester, Birmingham, Bristol and either Edinburgh or Glasgow). I had, in any case, my heart set on my Caramel Macchiato... but I knew I'd be back!

The following day - having had the idea firmly implanted in my head - I returned to the branch in question, to sample one of the coffees on offer. A different, but equally enthusiastic, Barista was happy to discuss the merits of the coffees on offer before taking my order for a Fairtrade Nicaragua Corcasan.

He then proceeded to make the coffee using the "pour over" method of filtering. This part was pure-theatre; the filter paper (my Barista discussed the merits of cloth vs. paper) is carefully placed in the specially shaped porcelain cup/funnel. This has a hole in the bottom and is placed on a special rack above the cup. He then took a measured amount of my chosen beans and freshly ground them.

Having prepared the beans, he warmed the funnel and cup by pouring some hot water through and discarding. The ground beans were then placed in the filter and water added to create the bloom (i.e. the point at which the grounds become saturated). After letting this settle, he poured the rest of the water through, taking care to continually move the narrow spout so that he "stirred" the grounds with the water stream.

The whole process takes around 4 minutes - and the result is an exquisite cup of black coffee (I wasn't offered milk, but that would have seemed wrong anyhow). More pricey than a normal filter coffee, but cheaper than the "handcrafted" range, this was well worth the cost for the personal service alone.

There's more about Starbucks Reserve range on the UK website here - and on the US site here. If you're lucky enough to live near a participating branch do try it.

Andrew