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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.
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