The Durango coffee trade
Local baristas, owners contemplate the arrival of the corporate bean

Steaming Bean barista Stephanie Gerber prepares an espresso drink for a customer at the Main Avenue shop on Monday afternoon. Nearly nine months after the opening of Starbuck’s a few blocks to the south, Steaming Bean owner Julie Dunn reports that her business has remained largely unchanged. However, for the last several years, she said business, which is mostly local, has been flat because of the proliferation of coffee shops in town./Photo by Todd Newcomer.

by Richard Carpenter

For some, Durango means good coffee every bit as much as steam locomotives, mountain bikes or alpine peaks. And last May, it was shaping up to be a tumultuous year in the coffee business. The Buzz House had closed on Main the previous year, but the town gained a new store, Durango Joe’s, on College, at nearly the same time. A new coffee roasting company, Desert Sun, opened in Bodo Park. Then in the spring another coffeehouse, Pure Soul, opened on Camino Del Rio, and Starbucks opened a free-standing store downtown, prompting fierce debate among over the perceived “corporatization” of historic Main Avenue. Even before the ubiquitous green sea siren logo was hung, dire warnings were given about the effect of this “800-pound gorilla” on local businesses.

Looking back on the summer season raised several questions. What did owners of the other coffee retailers think of their new neighbor? And what had Starbucks’ impact been on the other local coffeehouses?

Tim Wheeler, owner of Durango Coffee Co., says that his beverage sales have slowed a bit coincident with Starbucks’ arrival, However, he adds that there are additional factors at play – nearby office tenants moving away to outlying areas and other coffeehouses opening throughout town. He says that customer choice is a good thing, and competition doesn’t bother him.

“If I’m taking good care of my customers, I think the business will succeed,” Wheeler notes. “But as a resident of the community, I’d like to see the downtown remain unique.” He cites frequent comments from out-of-towners complimenting the local atmosphere and warning against homogenization.

In addition to beverages, Durango Coffee Co. sells locally roasted beans, whole or ground, as well as a wide variety of specialty kitchenware and gourmet coffee equipment. His retail business increased for the year, but he noticed that many of the customers who bought hard goods already had a different store’s coffee in hand and thus, didn’t buy the beverage from him.

Tom Mulligan, at Magpies Newsstand Café across the street from Durango Coffee, has noticed the same thing. It doesn’t bother him if people browse magazines or merchandise holding another merchant’s coffee, but he admits that it’s annoying when someone sits at one of his tables outside with a green-and-white cup. “I’d prefer to see downtown Durango remain free of chain-store logos,” he says, but adds that it’s a personal preference, and he does not mind healthy competition from Starbucks or anyone else. However, Mulligan is a little concerned that the corporation might decide to put in more stores along Main. His business has seen continuous growth over the last five years, with no drop or spike since Starbucks opened. “Consumers make their own decisions,” he says, “and hopefully they’ll keep choosing Magpies, and we’ll keep going.” He adds that Magpies sells lots of other merchandise, but definitely needs the coffee bar sales.

Steaming Bean owner Julie Dunn deals more exclusively in beverages and beans, specializing in European-style smoked coffee. She reports that her sales over the past seven years have been flat due to the proliferation of other shops and says Starbucks alone hasn’t changed her business, which is largely local and includes supplying several local restaurants with beans. She also offers smoothies, pastries and sandwiches as well as fresh-made soups in the winter and free wi-fi. The art on the walls is for sale, but she takes no commission from it. Contrary to some rumors, the store is not a chain, but is wholly owned by her – when she bought the store she kept the old name for the purpose of customer recognition.

Pedestrians pass the Main Avenue Starbucks on Monday. Local coffee shop owners report mixed results since the corporate giant opened although most agree that competition is good and Starbucks has helped further the mainstream appreciation of good coffee./Photo by Todd Newcomer.

Dunn appeared in a local TV commercial with Tim Wheeler and Tom Mulligan this summer in which they did cameos in each other’s stores. She echoes Wheeler on the wisdom of buying locally. “If I could buy every product from Colorado, I would,” she says. She emphasizes personalized service, saying that you can’t treat people like a dollar sign, and of coffee, she comments, “It’s important to the environment to be conscientious about how you grow, how you harvest and how you process it.”

Joe Lloyd, of Durango Joe’s, says that it’s his first year but business has increased steadily each month. He serves far more locals than tourists, though Starbucks sometimes sends people up the street to him for the free wi-fi access. And despite his closer location to the college, he estimates that students are only about 15 percent of his business. He recently opened a second drive-thru location on North Main, took over the South City Market coffee cart and plans another store near Wal-Mart soon. “You can’t be all things to all people – just find your niche and stick with it. We believe that people are priority, and great coffee.”

Lloyd says that Starbucks does impact the coffee industry and the people who enjoy coffee. However, he thinks the impact is positive, and the whole industry benefits because Starbucks has helped broaden the market for all. Lloyd also feels that more Durangoans are becoming coffee-conscious, which is good for all coffee establishments. “A good cup of coffee is like a fine wine, and you can definitely tell the difference between a good cup and a bad cup, so when it comes to our coffee, we pay close attention to the details.” He does a good retail business in whole-bean coffee from Desert Sun, the newest local roaster, including special blends that are unique to Durango Joe’s.

Pure Soul, on Camino Del Rio, also brews organic Desert Sun for drip coffee, but uses Illy Italian espresso beans in its espresso drinks. Brant Leeper, Pure Soul’s owner, is a musician who often plays piano in the morning for customers coming in on their way to work. In terms of sales, he started at the same time as Starbucks and so doesn’t have a baseline. His business, though, is strictly local, and he estimates that he saw maybe 20 tourists all summer. It’s about convenience, he says, and quick service. People may pass up a coffeehouse with a long line for another one that will serve them faster, but good customer service counts, too. “No one wants to go where the baristas are snotty.” He also offers free wi-fi and plans to resume hosting live jazz this winter.

Leeper, too, feels that Starbucks has been more an asset than a liability to the coffee industry. “You might not be drinking that mocha if Starbucks hadn’t introduced people to them,” he says. He thinks Starbucks is successful by finding the right spot, and says locals won’t make up the new Starbucks’ support base, tourists will. “That spot is perfect for them,” he says. “They didn’t come here to have fun, they came to sell coffee.”

The Starbucks counter in Albertson’s experienced only a temporary dip the first month that the new store was open. But the business – mostly people who are there to shop and want coffee while they do it – popped right back to normal and has held steady.

Starbucks’ official corporate policy is not to comment about these issues at the store level. However, an anonymous barista at the new location volunteers disappointment in the town’s initial reception to the store, but said that they’ve had a good summer. She also mentions a surprising number of local regulars, noting, “We thought that would take longer to happen.” More than half the employees were local hires (there were reportedly more than 200 applicants, with no help wanted ad); the others, with prior experience, relocated here to live and work.

The barista used to feel anti-corporate, but says that every small business hopes to grow, and she now feels it’s important to support corporations who treat their employees and communities right. On the subject of chains on Main, she says, “I think you need a balance of mom-and-pop stores and big names to attract people downtown,” and adds that Starbucks refers people to nearby stores and restaurants all the time and to other coffeehouses, too.

Since this Starbucks does not have wi-fi, customers frequently ask where they can go for it. She says that although they felt snubbed by some of the local shops at first, Durango Joe’s and The Durango Bagel have always been nice to them, and Starbucks refers people to both businesses.

The debate about corporate versus local business did not start in Durango and certainly won’t be decided here, if ever. In the end, everyone can agree that it comes down to a matter of personal choice.

Ralph DeVera soaks up the action along Main Avenue after departing Magpies on Tuesday afternoon.  Like many of Durango’s coffee shops, Magpies has found success in niche marketing by offering a patio area and a large magazine selection. Owner Tom Mulligan says sales have remained steady since Starbucks opened and  that competition is healthy, although he admits it is annoying to see the occasional green-and-white cup on his patio./Photo by Todd Newcomer.