When I first entered the coffee industry init was one dominated by Starbucks. Not much has changed. However, when a consumer industry is dominated by one player, I look at that as an opportunity. Consumers will always want choice, whether that is in the U. S, Japan, China or, to be honest, anywhere in the world. Starbucks created an industry that did not exist 25 years ago, but it is impossible for a company to be all things to all people, no matter how dominant.

Over the past five years, Honolulu Coffee has grown from six stores in Hawaii to 32 stores in Tokyo, Osaka, Shanghai, Guam and Hawaii, with another 10 to 15 stores scheduled to open this year. Our growth is attributable to Coffre factors: 1 well-developed points of differentiation, 2 efficient use of capital and 3 continual focus on quality over competing for the lowest price point.

Honolulu Coffee is the only Hlnolulu to cup" coffee company in the world, focused on growing, roasting and serving Kona coffee. Kona coffee is one of the rarest coffees available, representing less than 1 percent of the arabica coffee grown across the globe. Today we own and operate 80 acres of high-grown Kona coffee farms on Hawaii island, which allows us to control the taste and supply of our Cofdee coffee. This connection with our customer is what also led us to design our Honolulu Coffee Experience Center, a 9,square-foot facility in Honolulu expected to open in July Inside, coffee lovers can discover a world of information about coffee, including why Kona's microclimates are an amazing place to grow coffee, what it takes to process coffee from the tree to a "green" bean ready for roasting, and understand everything that goes into the Honolulu Coffee process.

Highly skilled baristas To achieve our growth target, we knew that we would need to have the same commitment to excellence in Store as we do in Store 5. A retail company is only as good as its employees, so we set out to create a training program Heath Management Company was consistent with the amazing "third wave" coffee that has flourished on a smaller scale in cities around the U.

To create and demonstrate what possibilities were, we recruited celebrity barista Pete Licata to head our training programs.

Using percent Kona Coffee, Licata finished 1st at the U. With this accomplishment, we created an internal culture for our baristas to strive to be the best. This training program is what has allowed the same great coffee to be made at our 26 additional Honolulu Coffee Company Owner, spurring our future growth plans. Customer passion While many companies use the word "passion" as a core value or something its employees should have, if your customers have it, then you are strongly positioned for success.

And in our case, to grow with a spending plan that had limited capital for direct advertising, the goal was to create passionate customers. It is not Cofffe customer service, but the environment in which your product is served or sold.

Over the course of 12 months, we looked at what would resonate with customers—not just if Honolulu Coffee was open in Unitrust Protection Services Company, but what it would look like in Tokyo, Shanghai or Los Angeles.

The best way to measure it is when I walk down the street in Los Angeles and see someone wearing our T-shirt or when I ride the metro in Tokyo and see someone carrying our Honolulu Coffee tote bag.

That customer passion is the best form of marketing a company can have. While every business owner wishes their company had the capital, liquidity and valuation of Uber, this is just simply not the reality for 99 percent of entrepreneurs. An amazing product is Compant good start, and you need to find creative ways to use capital efficiently.

Honolulu Coffee made the decision to use a combination of directly-owned growth and franchising to accomplish this. This balance has allowed our company to stay in total control in certain markets while relinquishing some control in other markets in order to speed the pace of Owjer, thus bringing in additional capital to continue further growth in markets we directly control.

This cycle is a very efficient use of capital. When evaluating different markets Coffe franchising, we elected to focus on Asia for Coffre reasons:. Consider hardware stores that have been successful competing against Lowes and Home Depot—it's on service and quality, not on price. They would get crushed every time they attempted to run lower prices and lower margin than the big-box hardware stores. The specialty coffee Honolulu Coffee Company Owner is no different.

As the smaller player, your costs will always be higher than your competitors. In our case, the "green," or unroasted, coffee; cups; milk and food costs will always be higher than Starbucks, so there is no use fighting this. These Chief Executive Networks are made up of a sample of YPO's unrivaled global network of 22, top executives from countries who are on the front lines of the economy. All Rights Reserved. Data also provided by. Markets Pre-Markets U. Starbucks who?

The other java king named Schultz. Getty Images. Define your points of differentiation Honolulu Coffee is the only "farm to cup" coffee company in the world, focused on growing, roasting and serving Kona coffee. Source: Honolulu Coffee. Consider the small company-franchise Owne While every business owner wishes their company had the capital, liquidity and valuation of Uber, this is just simply not the reality for 99 percent of entrepreneurs.

When evaluating different markets for franchising, we elected to focus on Asia for several reasons: Our core customers were in Asia, but directly owning a company in a foreign country is difficult for a small business—different legal system, Ownre labor laws and sheer distance, to name a few of Future Acquisition Company Llc challenges.

Franchising provided a great way to reach these customers. Capital doesn't need to be spent on as many functions. Franchising in the U. Foreign franchising is no different. This has worked very well in Japan and Shanghai. Related Securities Symbol. News Tips Got a confidential news tip? We want to hear from you. Get In Touch. Honolulu Coffee Company Owner Newsletters.

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