Episode from the podcastInvest Like a Boss

145: Coffee Shop Economics with Coffee Beanery’s Kevin & Laurie Shaw

Released Tuesday, 30th June 2020
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LAURIE SHAW
Laurie Shaw is the COO of Coffee Beanery.  In addition, she manages gift sets, fundraising, franchising, & wholesale.   As a mother of 6 children, she is a multi-tasker and has no problem delegating tasks (sometimes even to her grown children).  Feeling blessed to have such a positive and “can do” group of people to work with…. up for any task even rebuilding a store in 9 days.  It was said it couldn’t be done but with our amazing team (and not a lot of sleep)…it was accomplished!!  A nerd at heart, she loves reading and learning about virtually any subject.
Favorite Coffee: Iced Fudge Ripple 
Favorite thing about working at Coffee Beanery: The people and their passion for the company as well as being able to work with my family
Bucket List:  Traveling with her husband…I love learning about history and cultures and of course, eating different kinds of food

KEVIN SHAW
1970….Kevin started fixing coffee machines in the kitchen at the age of 6, he had to stand on a milk crate because like most 6-year-olds he was short. After successfully extricating himself from Fenton public school system in 1982 he had a brief encounter at Central Michigan University cementing his entrepreneurial direction, where he started several successful seasonal businesses.  He formally joined the family business (1986) as a manager of the Ren Cen store in Detroit and soon after moved back to corporate to develop the roasting, flavoring and packaging processes that have evolved into what you see today.  1989 started selling franchises, 
The glass is always half full…..if you aren’t laughing within minutes of meeting him give him more coffee and wait.
He was born in the wrong century “should have been a cowboy” or better yet John Wayne’s sidekick.
Favorite coffee: Hawaiian Kona   
Favorite thing about working at Coffee Beanery:  Getting to work with my family and make people laugh 
Bucket List: Going to carnival in Brazil

In this episode, Laurie and Kevin are taking us behind the scenes of their coffee franchise, Coffee Beanery. Coffee shops are bouncing back like crazy right now. But what does it actually look like behind the scenes to run a coffee shop? How many cups of coffee do they need to sell to be profitable? What is it like to run a coffee shop and what is the earning potential? It doesn’t cost that much to make coffee, but when you factor in staff, rent, and utilities, how profitable is this, especially with people who treat coffee shops like coworking spaces, buying one cup of coffee, and then sitting there for hours. 

Where we are:
Sponsor:
Discussed:
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Time Stamps:
  • 20:26 - Consumptions patterns for coffee globally over the past few decades 
  • 25:02 - “People like going places that are more special and unique.” - Laurie Shaw
  • 26:47 - The economics of owning a coffee shop 
  • 29:10 - Different products they sell and the revenue each product brings in 
  • 29:44 - How Coffee Beanery has responded to the rise of remote work and coffee shops becoming like coworking spaces 
  • 31:00 - The online order environment in the coffee business 
  • 33:22 - Where do their coffee beans come from? 
  • 37:01 - “People do business with people they like, and they will take an inferior product if they get an excellent experience.” - Laurie Shaw 
  • 40:50 - The cost and profit of a cup of coffee 
  • 41:35 - When and how Coffee Beanery moved towards the franchised model 
  • 44:43 - The requirements of becoming a franchise owner 
  • 55:00 - How Coffee Beanery creates customer loyalty 
  • 58:20 - The stats behind Coffee Beanery and other big coffee companies
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Episode Details

Length
1h 28m 1s
Explicit
No
Season
1
Episode
145
Episode Type
Full

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