enhancing office productivity ...
one cup at a time

Wednesday, July 13, 2005

Something’s Brewing in Office Coffeee


Workers Get Clubby With $28 Beans, $800 Machines
For those who don't want all the fuss, Michael Butz, president and founder of Peakland Coffee Service in Beltsville, has built a thriving business selling coffee to offices. According to the business journal Automatic Merchandiser, office coffee service nationally was a $3.39 billion business in 2004, and it is growing.

Peakland customers have their choice of coffee makers, including a high-tech, one-cup machine similar to the Saeco or an air-pot brewing system that pours fresh coffee into thermoses, thus ending the acrid smell of office coffee boiling to death on an electric burner.

Butz says new customers are often looking to upgrade the coffee service in the executive suite, overlooking the high-end coffee aspirations of lower-level employees. But eventually, folks on other floors follow their noses to the good stuff. In the interest of office morale, many clients eventually decide to offer everyone the higher-quality brew.

Peakland sells three brands of coffee -- Gevalia, Starbucks and Quartermaine, the last roasted in Rockville and available at Quartermaine's Bethesda store and at its Rockville roasting plant. "We run taste tests for our employees and our customers. Quartermaine always wins. It's a rich, smooth coffee that's easier on the stomach than Starbucks," he says.
 
 
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Though some prefer other brands and some accuse Starbucks of overroasting, the Starbucks name has tremendous cachet. Many employers throughout the region insist on Starbucks coffee and pay extra for paper goods embossed with the Starbucks logo -- to please employees and impress visitors. One such company is K12 Inc., a McLean publisher of print and computer-based curricula with a staff of 200-plus employees.
When Fran Roman, director of procurement and administration at K12, introduced free Starbucks coffee four months ago, employees flooded her with grateful e-mails. And no wonder: Many of these employees were paying out of pocket for Starbucks coffee.
Heather Charles, senior finance manager, says before Roman made the upgrade, coffee at K12 "literally made me sick." So she and some co-workers organized a coffee club. Twice a day, a member would fight Northern Virginia traffic to make the run to a Starbucks drive-through. Charles kept a spreadsheet. "I was spending $6 a day for coffee." Others were spending as much as $12 a day. When the office began providing Starbucks, "it was like getting a raise."
According to K12 management, in-house Starbucks is paying for itself in increased productivity. "I was losing up to 40 minutes a day of Heather's time," says Charles's boss, finance chief John F. Baule. "I couldn't afford that."
The cost effectiveness grows, he adds, when you multiply the time lost going out to Starbucks by some proportion of the 200-plus people who work here, he adds.
The fact is, Baule says, that many of the people in his company, himself included, "run on caffeine" -- which may explain why he thinks "for workers today, coffee is a much bigger deal than it was in the past."
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