Pour It On: Coffeehouses Perking Up Across Central Texas

The coffee business in Austin is brewing

AUSTIN , TX (Thursday, July 28, 2005) - Local and chain coffeehouses have been popping up throughout the area at a frenzied pace. Central Texas has upwards of 40 coffee retailers with countless locations, but some retail experts think the industry isn't caffeinated enough.

"There are definitely still pockets in the Austin area that are underserved for food and beverage services," says Eric DeJernett, senior vice president of the retail division for Trammell Crow Co. in Austin.

Kenya native Sandeep Makwana and his wife, Sonia, think they've tapped into one of those areas.

On July 1, the couple opened an It's A Grind coffee franchise at 4005 W. Parmer Lane. Since then, business has been as hot as a frothy cappuccino, they say.

"We did quite a lot of analysis in looking for a location," says Sandeep Makwana, and MBA graduate from the University of Texas. "Parmer Lane is extremely busy. And we're right in the middle of a neighborhood and near a community we can help support and grow with."

The Makwanas' 1,640-square-foot It's A Grind store is a franchise of Long Beach Calif.-based IAG Coffee Franchise LLC. The shop has 18 employees. A franchise, rather than a startup, was especially appealing, Makwana says.

"We were looking to live the American dream of owning and running our own business," he says. "With It's A Grind, it's a proven concept. That really attracted us."

It's A Grind has three locations in the Austin area and another five planned for laundry by the end of 2006. Makwana's store features a cozy fireplace, cushy chairs, jazz and blues music, and free wireless Internet access. Such amenities will help It's A Grind vie for business, Makwana says.

"When competing against the big chains, we offer personalized, friendly service. That's our number-one priority," he says. "But what will differentiate us at any given time? It's always going to be involvement with the community."

Makwana says his store will team up with area schools, churches and other organizations – donating coffee, providing sponsorships and offering a meeting place to build ties to the neighborhood.

It's A Grind isn't the only coffee concept that's percolating in Austin.

The 1300 S. Congress Ave. location of Austin-based Jo's Hot Coffee – the company's first store – has been such a hit with coffee drinkers that the company plans to open a downtown location by October.

Jo's co-owner Tina Rosenzweig says the new store will appeal to foodies as well as caffeine fanatics by offering pizza by the slice and hot sandwiches. The current location lacks a full kitchen.

"We plan to have a little wine and beer bar in there. It'll be a different setting altogether," Rosenzweig says.

According to Trammel Crow's DeJernett, there's enough opportunity in Austin for Jo's, It's A Grind and many others to thrive.

"I think you'll continue to see demand for opportunity in that market," he says.

"I believe people are going to keep drinking coffee. And I think retailers will use coffee as a vehicle to keep people coming into the retail environment.

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