It’s A Grind Brews Up Success In An Eight-ounce Cup

Specialty Coffee Franchise Finds Niche with Neighborhood ‘Home-Away-From-Home’ Approach

LONG BEACH, CALIFORNIA (Tuesday, May 11, 2004) - A unique franchise concept that applies the popular ‘Cheers’ neighborhood tavern approach to the coffee house setting is brewing up plans to give Starbucks a run for its money.

“By offering communities a warm, friendly environment filled with upholstered wingback chairs, a cozy fireplace, sounds of blues and jazz and other living room-like touches, we have created an atmosphere unlike any other coffee house,” said Marty Cox, Founder and Chairman “It’s A Grind is a neighborhood coffee house designed to be more upscale and comfortable than the traditional, wood table-and-chair décor found at most specialty coffee chains.”

Already established in multiple markets throughout the country, It’s A Grind operates 40 coffee house locations, with another 30 expected to open this year. In fact, opening two to three stores every month, It’s A Grind anticipates having 100 locations open by the end of 2005.

On the menu at It’s A Grind are our best selling iced and blended coffee drinks, specialty coffee and espresso-based drinks including mochas, lattes and cappuccinos. Also offered are a variety of fresh bakery and dessert items; and if you order a bagel they’ll even toast it for you!

‘The first cup’

Cox originally came up with the It’s A Grind concept after unpleasant, unfriendly experiences at a local coffee house that he frequented in his Southern California neighborhood. Along with the help of his wife, Louise Montgomery, Cox left his job as an office supply sales representative and was determined to start a business where customers could feel welcome, and valued. In July of 1995, Cox opened his first It’s A Grind coffee house and soon had five locations throughout the Long Beach area.

In June of 2000, Cox partnered with Steve Shoeman, an expert in franchising. One year later, they began franchising the It’s A Grind Coffee House concept. With Cox’s proven business model and Shoeman’s knowledge of franchise development, it wasn’t long for the It’s A Grind Coffee House concept to find its niche in an industry still considered to be in its infancy. In fact, at the end of 2002, It’s A Grind had 11 locations, and just one year later expanded to 33 locations with more than 125 franchises sold.

‘Dripping’ with opportunity

“Unlike our competitors, we offer entrepreneurs the opportunity to profit from the growing specialty coffee craze,” said Cox, noting that It’s A Grind is offering franchise opportunities nationwide.

Entrepreneurs wanting to own an It’s A Grind Coffee House will need between $250,000 to $350,000 plus working capital, which includes the initial franchise fee of $30,000. Included in the initial franchise fee, franchise owners receive: site selection assistance; lease negotiation assistance; design and construction assistance and an initial two-week training program at corporate headquarters. In addition, corporate trainers assist the franchise owner on-site during the store opening as well as on-going support.

It’s A Grind also provides franchise owners with a grand-opening advertising package that spans 90 days, including in-store signs, banners, a results-oriented direct marketing campaign and supplemental advertising. This grand opening package aids in positioning It’s A Grind as the community coffee house and establishes an initial customer base.

According to Shoeman, It’s A Grind offers a detailed, systematic plan to start, sustain and grow a business. By having a proven business system, a customer-friendly approach and an opportunity to be the frontrunner in a growing trend, It’s A Grind has instituted a business poised for growth.

“We like our franchise owners to maintain a presence in their coffee house to personally oversee customer service,” said Shoeman, CEO. “We realize that our success is directly tied to our customers’ experience, not just our great coffee. We are committed to creating an exceptional customer experience in a friendly environment; a place where you can relax with friends and family.”

A well-poured operation

It’s A Grind offers two different franchise opportunities, including a single-unit option and an area development program, which constitutes three or more locations. Each coffee house is assigned a protected territory, so multiple locations on the same city block do not occur.

“An It’s A Grind franchise owner must have a passion to serve others. People skills and the ability to manage employees combine for a well-rounded entrepreneur”, added Cox.

Each It’s A Grind location is approximately 1,000 to 1,500 square feet and requires 12 to 18 employees.

About It’s A Grind

IAG Coffee Franchise, LLC, based in Long Beach, Calif., was formed in 2000 to franchise the It’s A Grind Coffee House concept, founded by Marty Cox and his wife Louise Montgomery. It’s A Grind is a specialty coffee house concept that specializes in gourmet coffee and espresso beverages. Currently, more than 40 It’s A Grind locations operate in the United States, with a projected 100 stores open by the end of 2005.

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