Feb 14, 2009

Coffee shops holding their own in shaky economyBy Ramit Plushnick-MastiBaltimoreSun.com

Cranberry, Pa. – Steam releases in a long psssssssssss. Coffee drips and glasses clink. Coffee lovers in the hotel lobby closely watch baristas prepare their crafts: espressos and cappuccinos that can win them the title of best coffee maker on the East Coast.

While business owners large and small lay off workers, cut costs and freeze expansions in a bid to survive the worst recession in decades, many small cafes are enjoying double-digit profits, opening new shops and spending time and money to boost their images in competitions like this one recently held outside of Pittsburgh.

Economists are baffled by the phenomenon. They say it could be part of a backlash against large corporations — such as Starbucks — and a move by consumers to carefully choose where to spend each dollar and opt for what they perceive to be a high-quality cup of coffee made by a well-trained barista.

Starbucks turned a luxury into a necessity and everybody needs their coffee, said Constantine Stavropoulos, owner of Tryst coffee shop in Washington, D.C.

“Now they’re saying if I still need it why would I go to Starbucks when I have this alternative,” he added. “People are really beginning to re-recognize the neighborhood coffee shop,” he added.

Small coffee shop owners are doing everything to maintain their loyal clientele and attract new customers, especially those disillusioned by Starbucks and other chain coffee shops.

Cafe owners are pulling out the stops: They’re blogging; diligently selecting roasters; upgrading and changing menus frequently; chatting with customers in an effort to foster relationships; training baristas for months; and ultimately trying to provide a unique atmosphere.

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