Blue Bottle Coffee‘s attention to details and quality should have fueled its growth under most any circumstances. But the interest from, and infusion of, venture capital have given that growth a nitro boost: new cafés are opening around the world, and various related services (e.g., Handsome Coffee and Tonx Coffee) and small business chains (e.g., Tartine Bakery) are being gobbled up in the vortex.
That venture capitalists most familiar with the “virtual” tech world (e.g., Google Ventures) are also investing in very brick-and-mortar coffee businesses doesn’t entirely add up to me. Why not Krispy Kreme donuts for that matter?
Of course, the tech world believes it has a special and unique relationship with coffee, identifying with coffee-fueled programmers as it does. But coffee is weird in that 83% of American adults drink coffee, and yet just about every social group seems to identify with coffee and claim it as their own unique and special secret: cyclists, salesmen, radio DJs, writers, chefs, physicians, police officers, etc.
Unlike the virtual world where the word scalability almost knows no bounds, the very physical world of coffee is much more challenging. At one end, its roots are in the ancient art and science of farming. And at the other end, despite all the robotics and artificial intelligence brought to bear through superautomatic coffee brewing systems, the best stuff served in a cup still requires the efforts of a lot of human hands.
So what happens when investors seek hockey stick growth projections for a coffee chain when they are otherwise used to scaling metrics such as billions of selfies and Facebook likes? The pressure and expectations of these growth projections frequently leads to quality trade-offs. Before Starbucks coped with their growth demands by essentially becoming a global fast food chain, with push-button-automated machines operated by an ever-growing army of low skilled button-pushing employees, recall that the original coffee they often produced by true baristas operating La Marzocco machines wasn’t all bad.
Hence the big question for Blue Bottle remains: for how long can they march towards world domination before the quality tanks? James Freeman firmly believes its a fate he can avoid. But as you take on more and more investors and give away more and more ownership of the company, a tipping point edges ever closer as the VC interests in money inevitably weigh down the scales against coffee idealism.
That strange bedfellow relationship between VCs, tech, and coffee is on full display at one of the latest Blue Bottle Coffee Co. openings in Palo Alto. This former Varsity Theater (and Borders books) has been revived as the “SAP Hanahaus” workspace with an attached Blue Bottle Coffee service.
The historic building offers a unique outdoor courtyard in front, with various secluded café tables and benches, leading to a hall of merchandising (home brewing equipment, bags of roasted coffee) before you reach the front service counter and bulk of the interior tables. Past the service counter is the leasable workspace by the hour for all your start-up needs.
Using a two-group La Marzocco Strada, they pulled a thick, shorter shot with a mottled medium-brown crema. It had a potent aroma, a good body and mouthfeel, and a rich and complex blend of flavors that included dark chocolate, molasses sweetness, and some honey. The shortness of the pull brings out concentrated complexity: this is not your typical pale, narrowband, watery single origin shot pulled by Third Wave sheep. Served in designer logo Kinto cups with sparkling water on the side.
So has Blue Bottle reached the tipping point yet? Based the quality of the espresso here, not in the least bit. However, an espresso-loving friend (whom I converted years ago into a home roasting devotee) was not impressed by it, saying he’s often had better.
Based on that one shot, I rarely have better. But it is extremely rare that you find shots consistently pulled of this style and density, so this will require repeat visits to verify if this just wasn’t a one-off.
Read the review of Blue Bottle Coffee at Hanahaus, Palo Alto, CA.
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