You can learn a lot from a coffee shop, especially one like Funnel Mill, a popular location among the Hollywood elite.
I love coffee shops—major chains like Starbucks and Peet’s— as well as smaller, unique, quirky places off the beaten path. I discovered one hundred year-old coffee bars in Malta, stunningly beautiful coffee lounges in Vienna, delicious cafes in Paris, and “coffee shops” in Amsterdam that served a lot more than espressos. But it was on a business trip to Santa Monica, California, that I stumbled upon what is now my favorite coffee place. Funnel Mill has become popular with celebrities because its owners, J.C Ho and his wife, Teresa, have transformed a commodity—coffee— into an experience.
All successful brands start with leaders who have passion and vision. Ho told me that while he was traveling around the world for a computer company, his passion was visiting coffee shops. However, he rarely found the perfect combination of quality and service. “The coffee shops would either offer good food and horrible service or good service and horrible food,” Ho said.
When J.C and Teresa decided to start their own coffee business, they spent five years researching the industry and developing a business plan before they opened it. Five years! On their first day they worked from 4:00 a.m. to 10:00 p.m. and made $17. Despite the slow start, word soon began to spread and customers learned that Funnel Mill offered more than basic coffee drinks; it served rare coffees and teas with a shot of friendliness. After several visits and conversations with Ho, I realized Funnel Mill’s success offers three valuable lessons for leaders, entrepreneurs, or business owners in any field.
1. Tell a unique story. Funnel Mill offers an $80 cup of coffee. It’s called Kopi Luwak and is served by appointment only. It’s made in Sumatra with the help of an animal, the Luwak. The Luwak eats coffee cherries off a tree—bean and all. The bean is fermented as it passes through the Luwak’s digestive tract. Once it comes out the other end the beans are harvested, cleaned, roasted and ground. The price fluctuates based on availability because only one hundred pounds are produced a year ($80 to $90 a cup is the most recent price).
Specializing in rare coffee blends like Kopi Luwak helped put Funnel Mill on the map. Shortly after it opened, an editor for Travel & Leisure wrote an article about its unique coffees. More news coverage followed in magazines and on radio and television.
Journalists, bloggers and customers are looking for a ‘hook;’ something unique that differentiates your business from the sea of sameness. At Funnel Mill, even the brewing process is unique. Ho brews coffee one cup at a time using a syphoning method that dates back nearly 200 years. He also practices the traditional Chinese Cha Tao ceremony when serving teas. It’s unlike any experience his customers will find at one of the coffee chains just down the street.
There’s a lot of mediocrity in business today. It’s hard to figure out what makes one business different than the other, especially in crowded fields like real estate, accounting, legal services, financial services, consulting, or coffee. The day of average is over. You can’t just sell a product or service without being different in a clear and compelling way. Share your unique story to get noticed.
2. Ask your customers what they want and act on it. Don’t expect to visit into Funnel Mill to snap photos of celebrities on your smartphone. Funnel Mill bans cellphone use. An Oscar-winning director once approached Ho and suggested that he implement a ‘no cellphone’ policy. Ho wasn’t sure about it, but when he overheard a customer on his phone using profanity right next to a mother and her daughter, he knew the ban was the right thing to do. Instead of losing customers he gained admiration among Hollywood movers and shakers looking for an oasis of calm, quiet, and privacy.
The cellphone ban is just one example of how J.C Ho listens carefully to his customers. Computer users wanted easy-to-find electrical outlets. Some customers wanted to buy unroasted beans so they could roast their own coffee at home. Others asked for comfortable leather couches and chairs in more private areas to facilitate group meetings and deal-making. Ho gave it all to them. He knows many of his customers by name, greets them when they enter, and constantly solicits feedback.
3. Pay obsessive attention to details. No detail is overlooked at Funnel Mill. Ho arrives at 4:00 in the morning to prepare the water through a special filtration system. Many restaurants use tap water for coffee and some will use a basic filter. But that’s not good enough for a coffee lounge that wants to raise the bar on the customer experience. Since coffee is 98 percent water, Ho purchased the best water filtration system on the market. It softens the water, uses reverse osmosis to remove contaminants, and even pumps minerals back into the water after the particles have been removed.
Details matter at Funnel Mill. The coffee is served in a meticulous manner. According to Ho, “Coffees are brought on silver platters. At the twelve o’clock position, we place two types of sugars in small ceramic bowls so you can see how clean and pure the sugar is. The cup’s handle is positioned at four o’clock to make it easy for the customer to pick it up while they’re working on their computer. A napkin and a long-stem spoon are placed in the nine o’clock position and the customer’s choice of cream is placed at three o’clock. Our ingredients are measure to the gram. I want to make sure that your drink tastes and looks the same each and every time. The experience must be consistent whether you come in tomorrow or a year from now.”
I paid $80 for a cup of coffee to prove a point: passion, vision, hard work, persistence, and a commitment to the customer experience is still the magic formula for success.