Roast of the town: can the ordinary Joe find coffeehouse success in a Starbucks world?(BIZ 101)

ONE OF THE MOST COMMON ENTREPRENEURIAL fantasies is to start a coffeehouse, to brew the best java while the cast of Friends sips and chats for hours on plush sofas. But with Starbucks on practically every corner, is it still possible for smaller outfits to be successful?

Absolutely, claims Bruce Milletto, president of Bellissimo Coffee Info-Group, a coffee business consulting firm in Eugene, Oregon. According to Milletto, the keys to success in the coffee business lie in stellar customer service and great ambience, in addition to a high-quality product. "It's not about the coffee; it's about the break," he explains. "That's why so many [coffeehouses] exist--they're social meeting places."

Creating a community meeting place was one motivating factor for Ellen Heller-Leo, 48, who launched Mother Earth Coffee Co. in Park Ridge, Illinois, in June 2002. Complete with mahogany decor and a piano, Heller-Leo's shop attracts the Chicago elite (mayor Richard Daley is a regular customer) and local college students alike.

What sets Mother Earth apart from other coffeehouses is Heller-Leo's commitment to give 10 percent of profits to charity. "You're helping people through your business. If everybody did this, then everyone would be taken care of," she says. With sales at about $1 million and agreements in place with investors and local officials, Heller-Leo envisions opening upwards of 200 locations in the next three years.

A unique element is needed to ensure success for coffeehouse entrepreneurs. Case in point: Jack Kelly, founder, and Bob Ohly, vice president, of Caffe Ladro in Seattle. With seven stores operating in the Seattle area, Kelly and Ohly, both 38, built their concept with a special focus on bakeries located in ...