Port City Java Leaps Sea
WILMINGTON, N.C.-- (RALIEGH NEWS & OBSERVER) -- January 18, 2005 -- When Port City Java opens its newest store next month, there will be an all-male staff and a wall dividing the men's seating area and the women's. It's not that the Wilmington-based coffee chain employs sexist practices. It's just that this particular store is in Riyadh, Saudi Arabia, where the culture prohibits both mixed seating and female employees while also requiring five closures a day for prayer.
That store is one of five that Port City has under development in Saudi Arabia. They will join Port City's three stores in Iceland, and they will be followed by seven in Costa Rica and 200 in Indonesia during the next five years.
Port City's international expansion is noteworthy, especially considering the nine-year-old chain has only 106 U.S. locations and began franchising in September 2003. Since then, the number of stores that Port City has either open or in the works increased nearly fivefold. Revenue for the chain jumped from $12.5 million in 2003 to $15 million last year.
" You can become insulated thinking the only business in the world is in the U.S., " said chief executive Don Reynolds. For coffee chains such as Port City, establishing a global presence now means they have a foothold for the future as the already competitive industry expands worldwide. " They simply view it as a market opportunity, " said Joseph DeRupo of the National Coffee Association. " There's simply more room to expand. "
All are trying to catch up with the grand latté of them all, Seattle-based Starbucks Outside the United States, Starbucks has 2,573 stores in 35 countries, including Bahrain, Qatar and Cyprus. In this country, the chain has 6,376 U.S. stores. " We've said that eventually we'd like to have as many as 15,000 stores internationally, " said spokeswoman Lara Wyss. To expand globally while keeping costs down, it's a matter of finding international partners who can fund the locations and have some retail expertise. When companies that fit the bill approached Port City, the company OK'd the overseas franchise deals.
But there were some special requirements. There's 45 days of training, instead of the usual 24, because the international franchisees have to learn how to train their employees once they get home. " You're basically setting up an organization above an organization, " Reynolds said. Typically, since Port City works with companies looking to open multiple stores, the territories sold internationally are larger. Port City will continue to boost its visibility in this country as well, Reynolds said. The chain signs deals for eight to 10 new stores a month.
" We're opening one every eight days here, " he said. Reynolds said he is confident Port City can keep up with the hectic opening schedule here and abroad, even though he knows opening several hundred stores in a few years will test his company. " The key is making it work logistically, " he said. " We found companies willing to make large commitments. A lot of our vendors work on a worldwide level, and eventually we will begin to roast locally instead of shipping beans in. "
DeRupo predicted more American coffee chains will begin expanding overseas, aiming to turn other countries into nations of coffee connoisseurs. Right now, 79 percent of Americans drink coffee at least casually. " Coffee companies see these trends and expect they don't stop at the American border, " he said. " It seems logical that they would find new markets. "
About the Port City Java® Brand
Port City Java® is located in Wilmington, NC. The Company opened its first café in March 1995, in Wilmington, NC. The Company began Roasting in October 1995 and Franchising in September 2003. Port City Java® has created a specific identity by creating an " all day approach " to sales, through its café environment. For additional information regarding Port City Java®, please email us.
