Ones to Watch | By Sabrina Davis
Java Detour
Java Detour is now redefining its brand by growing its new lounge-like, 1,200-
to 1,700-square-foot stores with interior seating. The first opened in Las
Vegas last year, quickly followed by three more in and around Vegas.
“When you walk into our stores, you immediately notice a stark contrast
to the typical coffeehouse setting,” Binninger says. The restaurants
are decorated mainly in black and white. The seating area is a mix of black
leather lounge chairs and a few tables. A plasma television, upbeat music,
and free Wi-Fi access provide diversion.
“We’re trying to create a different energy than the competition.
And from what customers are saying, we’ve done it.”
The chic, upscale atmosphere is part of the equation to make the Java Detour
visit feel special. Another factor will be managing growth. Binninger calls
the redefined Java Detour a boutique brand—one you’ll find sprinkled
across key markets, rather than blanketing them.
“We’re entering a phase of aggressive growth, but we won’t
have so many that it becomes ordinary” he says.
Java Detour
CEO: Michael Binninger
HQ: San Francisco
Year Started: 1995
Annual Sales: $8.5 million
Total Units: 18
Franchise Units: 4
Why
it bears watching: Aggressive growth will begin with adding 10 stores
this year to the current 18. Eight will be franchises. The majority of the
growth will be through area development nationally and internationally.
Binninger says the company, which recently became public, also is exploring
acquisitions. Two of the stores planned for this year will open in Ireland.
There also will be new stores in Nevada, California, North Carolina, and
New York. The company intends to have 1,000 units open by 2011, some of
them in airports.
Java Detour serves 500 to 600 customers a day in each store, with an average
bill of $4.25. Operation hours are 5 a.m. to 10 p.m., seven days a week.
While most customers are commuters, Binninger hopes the new atmosphere will
bring patrons inside to stay for a while and perhaps partake in more than
just a quick coffee drink.
The company also offers regular lineup fresh-baked pastries and bagels. Always
with an eye toward speed, Binninger says his stores have the world’s
fastest bagel toaster, delivering a toasted bagel with cream cheese in 18
seconds.