8 minute read
Conversation: Sarah and Raphael Perrier
Founders of Kahwa Coffee Offer Advice to St. Pete Entrepreneurs
From their modest start in 2006 with a small roasting facility and big dreams, St. Petersburg residents Raphael and Sarah Perrier have built Kahwa Coffee into the largest independent coffee company in the Tampa Bay area and the state of Florida. Their journey began in a Philadelphia coffee shop, where their shared passion for coffee and each other would eventually evolve into a successful 20-year marriage and business partnership.
Kahwa’s wholesale customers skyrocketed in 2008 after receiving the stamp of approval from worldrenowned French chef Paul Bocuse, who selected Kahwa coffee for his highly esteemed restaurant in Epcot, Chefs de France. That same year, Kahwa’s first retail cafe opened in downtown St. Pete with the goal to create an environment with personalized customer service and a community meeting place where all walks of life can come to socialize.
Today, their Kahwa “empire” encompasses 14 retail locations and over 1,200 wholesale partners, including high-end resort destinations, hotels and restaurants as far away as Turks & Caicos and Mexico.
Long-known in St. Petersburg for their generosity of supporting local non-profits and public events by donating coffee, the Perriers stepped up a decade ago as the coffee sponsor for the 1 Million Cups entrepreneur support sessions held every Wednesday at the Greenhouse. They remain in that role today, and were invited to be guest speakers for the 10th anniversary celebration of the St. Pete 1 Million Cups in March, where they discussed their journey to a packed audience. These excepts were culled from that conversation.
What were your first couple years like in St. Pete?
R: We learned the coffee business in the Philadelphia coffee shop and decided to move to St. Pete to be near Sarah’s family. Actually, our goal was to open a bar in St. Pete, but that didn’t work out, so we looked around and noticed there was no coffee company so we decided to open one. We opened a small warehouse in south St. Pete in March 2006, bought a roaster and some bags of coffee beans and started roasting. We had a grand opening and nobody showed up.
S: The first couple years we just concentrated on selling wholesale, trying to build brand recognition and getting restaurants to trust us and know we are going to be around. I had been a professional dancer and company manager for a non-profit dance company, so that helped me learn how to run a business.
R: Mickey’s Organic Café was our very first customer. The transition was slow, Sarah would bag and label by hand. But when we opened our first coffee shop downtown in 2008, that’s when the brand started taking off.
How does your business relationship work?
S: Our partnership is great because you have someone you can talk to and trust. He has the vision of where we are going, and mine is how are we going to get there. At first, we had more of a plan in our head, but we do strategic plans now. You can have a business plan but you have to be flexible and take opportunities along the way. But you have to learn not to say yes to every opportunity that comes up … planning is definitely important but being flexible is just as important. You have to stay true to your mission and your plan.
R: The plan changes. When you keep on growing, the plan needs to grow with it. You have a plan, you have a vision, but it’s always changing.
How do you determine what’s a good opportunity?
R: Know your product and know demand. We learned the demand for coffee is on the way to work, so the drive-thru location is important. The weekend Saturday and Sunday are our biggest days. That’s how we choose our locations.
You launched franchising recently, a big step. How’s that going?
R: I have been wanting to do the franchises for the last five years, but Sarah would say it’s not the right time. When she finally said yes, we put a plan together and learned how to franchise. We started last November and sold 20 units, but now we have stopped. We want to open the new stores and make sure they are successful. It’s key to finding the best location and the right owners.
S: Part of our brand is the local connection with the community… we wanted franchise partners who were connected with their communities and could create that same feeling. For example, a lot of our franchisees are couples and we trust they will be doing the same thing that we are doing.
R: We try to recreate what we have done in St. Pete. We don’t want to just be a brand in someone’s group portfolio.
Looking back, what have been some of your biggest challenges?
R: My biggest challenge over the years was trusting people. It took us a long time to form a team. We have a 20-person management team now and are so excited to have the support of a great team.
The concept of creating a community support network for entrepreneurs to share their startup ideas over a cup of coffee is a national program that was developed in 2012 by the Ewing Marion Kauffman Foundation in Kansas City. With 1 Million Cups, Kauffman wanted his foundation to be innovative and support entrepreneurship — and to someday share a million cups of coffee around conversation.
We also had several trusted advisors we learned a lot from.
What is your advice for anyone starting out?
R: There is always a risk factor. You’ve got to believe in what you’re doing. If you don’t believe in it, don’t do it. And don’t be afraid of competition. Competition is healthy; it’s part of business. If you keep on making a decent product, have good customer service and give back to the community, you will get the support. It’s always been our goal to be part of the community and give back.
S: You can’t try to please everyone. And do everything. Stay in your lane and don’t change your vision.
What is 1 Million Cups
The concept of creating a community support network for entrepreneurs to share their startup ideas over a cup of coffee is a national program that was developed in 2012 by the Ewing Marion Kauffman Foundation in Kansas City. With 1 Million Cups, Kauffman wanted his foundation to be innovative and support entrepreneurship — and to someday share a million cups of coffee around conversation.
Currently, 101 communities across the country offer a 1 Million Cups program, with seven locations in Florida, including groups in St. Pete, Tampa, Orlando, Pensacola, Ocala and Daytona Beach. Traditionally held on Wednesday mornings, the one-hour sessions are usually run by volunteers, and feature two start-up presenters getting six minutes each to present their ideas. This is followed by a discussion and QA period with the audience, offering an open forum of feedback, ideas and support.
In downtown St. Petersburg, 1 Million Cups is held at 9 am on Wednesdays at The Greenhouse, which is a joint program of both the City and the St. Petersburg Chamber of Commerce. The Greenhouse supports the growth and development of the city’s entrepreneurs and small businesses through offerings that includes business consulting and mentorship, classes and workshops, business assistance and other resources at low to no cost.
“When we first heard about the 1 Million Cups program back in 2013, we submitted an application to the Kauffman Foundation to start a group here,” explains Sean Kennedy, who was working at the Chamber at the time. “We were told the City of St. Pete’s Innovation Center had also submitted an application, so we mutually decided to partner on the program.”
At the beginning, Kennedy was tasked with getting the program off the ground through marketing to the community, organizing presenters, finding volunteers, and acting as an emcee. “Our concept was to create a community around entrepreneurship. To elevate St. Pete as an entrepreneur city, to give exposure and help the community at large. We very quickly built a community around it and people really cared, they enjoyed coming.”
The goal of the 1 Million Cups program was clear from the beginning, he added. “These were never meant to be pitch sessions. It’s not a way to find investors. It’s just six minutes to have a conversation, get advice and make connections.
The program receives no funding, which is why volunteers are crucial for success. “The people who came forward as volunteers at the outset were dynamic and inspirational, they were just invaluable.”
Kennedy also needed to find a coffee sponsor. That’s when Raphael Perrier came forward. “He was our first coffee sponsor 10 years ago and has been with us ever since,” Kennedy says.
As luck (and fortitude) would have it, the Perriers set the perfect example for program participants. A comment on the Greenhouse web site attests: “Kahwa Coffee’s journey from a dream to a flourishing reality exemplifies the resilience, passion, and innovation that 1 Million Cups aims to foster in every entrepreneur.”
The Greenhouse is located at 440 2nd Ave N., St. Petersburg. To learn more about 1 Million Cups and The Greenhouse, go to stpetegreenhouse.com or call (727) 893-7146.
