Barcelona's big bang inspires a new European coffee service.

Why Seattle? Why Barcelona?

There are good reasons why these two cities have been cradles for a renaissance in contemporary coffee service; some pertains to pure chance too. However, a conjunction of personalities, experience, commercial and design dynamism, of two urban societies on their own, prone to setting their own rules and making their own judgements, plus the fact they are great port cities open to new things--such elements all play their parts.

As disparate as these cities are, together they are the reigning centers of current coffee service business and initiatives.

Seattle, of course, is the birthplace of the Starbucks phenomenon--an enterprise that has changed the global landscape of coffee service. But the main focus initially for the Starbucks experience was the U.S., and that is where it has made its most distinctive impact.

Likewise, Barcelona has played much the same role in Europe, albeit in concert with smaller swirls of coffee service pioneering in London and Amsterdam. This makes it significant because Europe is tending to follow its styling and ideas and Europe is the largest coffee service market by far. Europe is the glittering prize in this new age of coffee service--fast or slow, hot or cold, Italian or not.

Among the numerous new wave espresso bars that sprang up in Barcelona around 1990 or so, some have grown to rank in order as the largest coffee bar chains in Europe. With control of the Spanish and Portuguese coffee service markets, these enterprises have achieved the momentum to venture abroad. And they are doing so.

Every city of any size in Spain has its local chains of espresso bars. These normally vary in size from a very few outlets to perhaps a dozen. All together these hundreds of establishments are the real bedrock of Spanish coffee service business. And for the most part they are increasingly true to the Barcelona styles, having reinvented themselves to survive.

Yes, there were many coffee store/bar chains in Spain for many years. The Cafes Caracas chain, for example, is celebrating its 50th anniversary this year (in Barcelona). And its general manager Jordi Codina has long been a proponent of a revival of good coffee in Spain along with such voices--to name but a few--as those of Salvador Sans, Julian Marcilla, Sergio and Giovanni Margaria, Lluis Sauna, Eusebio Jorba, and Pere Cornella. But the new style of bar has had its impact everywhere, even on Spain's most lauded and distinguished coffee service establishments. The Barcelona styles, there are more than one, usually denote softy lit, luxuriant but welcoming, espresso-themed, beverage/food establishments. They are demonstratively designer oriented, and whether they be by nature for fast coffee, for in-your-face trendy coffee--or for upscale coffee they all have a vibrant and bold coffee atmosphere, they all call to the young.

They also have a coffee menu--sometimes with an array of origins--sometimes focused mainly on traditional Italian theme drinks--sometimes on coffee cocktails, warm and cold.

The coffee of such an outlet may cost more than it does at a regular care, but it seems to be special, a treat, and the atmosphere is pure added value. The young were the first target market of these establishments; all ages use them now. Ironically, Spaniards have been drinking espresso since the beginning of the 20th century, and in terms of consumption and of the number of espresso machines in service, it is actually the largest market for espresso coffee outside of Italy itself. Native consumption has swelled considerably by Spain's huge tourism industry.

France, the U.S., Portugal, Switzerland and Austria follow--yet it remains true that for almost a century, Spain has been a leading espresso drinking nation. This makes the Barcelona phenomenon of particular note, versus such non-espresso drinking cities as London and Amsterdam, which have had to formulate their own specific formulas.

The new wave Barcelona-style coffee bars enjoyed their great success because they managed a slight of hand. They repositioned "espresso" as an Italian product, totally unique from what the older generations of Spaniards had swilled in their cups. It worked. And extremely well, too.

The first espresso bars that I personally saw in Spain were Segafredo and Illy bars, in the late 1980's. These were not trendsetters although they probably brought along the great idea of exchanging Spanish espresso for "Italian" espresso. Already by the early 1990's, the Barcelona style was well established and booming.

The three main chains today in Spain (excluding the Illy Bars, which for some reason are not included but according to some sources are more numerous than any other) all date from 1994 and are based in Barcelona. They are Jamaica Coffee Shop (122 units as of the beginning of this year); Cafe & Te [72 units); and Il Caffe di Roma. Each has plans for expansion this year and next, to varying degrees of ambition, both in Spain and Portugal, and most certainly, abroad.

But Starbucks has been in Spain now for years. What has that meant? It had 22 outlets at the start of 2004, with a goal of attaining 100 in Year 2006. How the Starbucks entry into a very competitive and highly sophisticated espresso service market would fare has been closely watched in Europe. Spain is not the U.K. As has been its story for years, Starbucks has proceeded with a workable plan in Spain; first, follow the established Starbucks market--meaning in this instance locating outlets along the tourist path for North Americans and Northern Europeans. Find a Spanish monument or museum and you'll find a Starbucks.

Secondly in the plan, find a market experienced partner (the RIGHT partner) to expand outlets into viable areas outside the tourist path. For the latter, Starbucks has teamed with Spain's VIP Group, which manages a chain of what can be termed "mini department" stores for foreign good. These outlets are sprinkled about the larger cities in the business districts and are great for catching shoppers in search of peanut butter, Belgium beer or taco shells. To date, the feeling in Spain is that Starbucks is being positioned as a separate entity, and at least for now, for niche markets of its choice. The battleground for espresso service bars will take place in other European markets, even as the battle roles are being defined in Spain. Starbucks is ready, as are the Barcelona companies.

Il Caffe di Roma

The chain of Il Caffe Di Roma espresso bars are, like Starbucks, of unique interest to many. That is because they are owned by Lavazza through its Panarom subsidiary in Barcelona. The world's largest espresso coffee roasting company acquired the chain in 1999.

That Lavazza is a giant in espresso retailing and a major player in various espresso horeca markets did not figure when it entered the espresso bar contest. This has been as much a learning experience and a commercial venture for the company.

There were--as of March, 2004--51 outlets with the Il Caffe Di Roma name in Spain. In Portugal, where it is market leader, the chain then had 25 outlets. In addition, an Il Caffe Di Roma bar opened in Paris earlier this year, along with another in Turin. The forecast--being established as of this writing--is for 55 chain outlets to be operating in Spain by end of this year; plus 30 in Portugal.

Two formats have been tested and are now offered to franchisees--the bar-in-a-mall concept, requiring between 50 and 75 sq. m., and the street concept, needing at minimum 100 sq. m. The company has also announced an Il Caffe Di Roma kiosk project, details of which are pending. There is variety in the look and layout of the outlets, but the variances are kept to a range of brand stylings that emphasize a rich velvety green color and the use of a unique post-high tech lighting system over a decor that mixes elements of traditional Italian espresso bars with very contemporary designer ideas. This sleek mixture of upscale free styling with strong branding attributes are distinctively emblematic of the chain. The bar equipment, cups, and other accessories are standardized; as is the menu.

The logo stands out smartly, detailing a vague dark bean shape with the Il Caffe Di Roma name arced above and the shape of Italy cleverly superimposed on the bean shape. Below is the motto, "Il Caffe ... caffe, the chain's foremost defining focus." The outlets offer, in addition to the coffee menu, tea, chocolate drinks, paninis, pastries and ice cream.

Notably growth contained, the chain, which could have been pushed to any size given the strength of its backer, has been carefully extended. This is in part to maintain quality control through proper training and constant monitoring. Lavazza wants this to be an impeccably top quality oriented espresso bar that creates a niche of its own.

The managing process since 1999 has as noted, also been an extremely valuable learning experience for Lavazza itself. The company has a very high profile name to protect. Anything going into coffee dedicated retail and on the main street scene, bearing the Lavazza imprimatur, must be kept to a grade that will give luster to the Lavazza products for sale on local store shelves. First and foremost, Lavazza is and will remain a big food store coffee retailer.

To this end, Lavazza holds ownership of one bar in Spain and of the new outlet in Turin, which is the company's headquarters in Italy. These are used for training, for experimenting with new ideas, for keeping on top of market trends.

The Paris outlet is also a direct Lavazza project, but in conjunction with Autogrill. Lavazza and Autogrill are in fact testing the Il Caffe Di Roma concept in one of Europe's grandest crossroads--Paris's famed Gare du Nord train station, the rail nexus between the continent and Britain. This project is of buzzing interest too, as Lavazza has brought Autogrill into the project; Autogrill is the number one company in travel foodservice, worldwide. Beyond these three owned espresso bars, all the other Il Caffe Di Roma establishments are operated by franchise agreements.

To franchise or not to franchise: that is an on going debate for coffee as it turns towards its own dedicated beverage service chains--in Spain and elsewhere. It is said that a proposed merger between Jamaica Coffee Shop and Care & Te chains (forming by far the largest espresso bar company in Europe) came to naught because of disagreement on this very point. Jamaica owns its stores, and maintains a commitment to that type of operational organization. That Lavazza would bring Il Caffe Di Roma to the European stage--in Paris and in Turin--surely indicates the company's confidence in the concept and its impact on the Lavazza name. However, that the debut outside of Iberia is cautious also indicates a degree of uncertainty. So which is it?

The answer is back in Barcelona, I believe, where Lavazza has agreed to use the services of the Spanish food product distributor McLane (in turn a subsidiary of Lekkerland, one of the largest sector distribution companies in Europe).

McLane will provide the operating logistics of Il Caffe Di Roma outlets. McLane's agreement makes news in Europe because of the tie to Lekkerland--just as did the arrangement with Autogrill in Paris. Lavazza's choice in McLane may in part be based on its recent performance. The distributor increased its coffee volume sales to Spain's Horeca sector by 11% in 2003; coffee sales worth 127 million Euros.

That's news of note even to a company as large as Lavazza. Perhaps after all it is distribution, rather than market response, that have become the key to Europe? The future does promise astonishment.

Another Jewel In the Crown

Cities seem to gather certain specialties about them. Easy enough to understand--one successful manufacturer sprouts a competitor, and then both stimulate a surrounding structure of suppliers.

This has been the story for Quality Espresso, which has been manufacturing professional espresso machines, grinders and dosers by the multiple of thousands for many years.

The company may not yet have a name that all recognize--but that will come. The market does know its brand families, around the world--Futurmat, Visacrem, Mairali and Italcrem. Actually, Quality Espresso is not only the largest espresso machine manufacturer in Spain, it is probably the largest outside of Italy itself. In fact, in terms of production volume, capacity and workforce it would rival the largest Italian manufacturers as well. What makes Quality Espresso unique? Foremost, it is the combination of two great Italian lines of coffee bar equipment--under the legendary Faema and Gaggia names. Both companies established factories in Spain in the early 50's and brought with them the highest tradition and most advanced ideas that Italy had yet produced in the technicalities of espresso culture.

From being the union of these Spanish ventures--Gaggia and Faema--Quality Espresso like a claimant to a throne can trace its espresso lineage back to the dawn of the drink. What Quality Espresso has made of its heritage is something quite of its own doing. Its current trademarks are proudly presented as engineered with workable answers to virtually every demand of the contemporary espresso bar market

The character of the company can thus be outlined briefly as: combining the highest tradition of Italian espresso machines with practical responses to market demands; producing machines with what the company terms "noble" parts--as little plastic as possible, and with most components made in house; creating machines with genuine "presence" by focusing on housing design details.

Its work force of 170 people has been with the company on an average of 24 years per worker. Few companies can benefit from such longevity and loyalty in their workers--a wealth of crafting experience that puts real value behind the usual marketing claims about quality. Thump a Quality Espresso product--it rings with depth; pick up a Quality Espresso serving group handle and the weight speaks for itself.

While the company stresses its place at the forefront of espresso technology--it also remains committed to user control. This also distinguishes the QE line. The builders built thinking of how the users would use. That sounds simple enough but is far from facile. Quality Espresso is cold stainless steel crafted to make a hot cup of classic espresso. The machines are also made to look like they came from Barcelona, one of Europe's leading art and design centers. The company is using such famed designers for its current line as Ricard and Debenedito.

Quality Espresso is now launching three new models: the Futurmat F3, Italcrem IT4 and the Visacrem KB. Each benefits from the company's conservative strategy of blending the best parts with the latest technology, while staying true to the espresso tradition. The company makes no fully automatic machines, nor does it make pod machines (although all its machines can be readily adapted for that usage). The product range line runs from lever to automatic, semi-automatic and fully automatic. The machines come in one to four groups, tested and ready to make the gambit of espresso-cappuccino type drinks.

In Spain, Quality Espresso has a 40% market share of the professional espresso machine market--the second largest market of its kind after Italy. Spain consumes more than 30,000 new machines per year and it is estimated that there is some 300,000 espresso machines in use in the country. Beyond Spain, the company's main markets, by order of descending importance, are Italy, France and Portugal. There are specific service networks for the machines in these national markets. In Russia, the U.K. and U.S., distributors provide service. QE itself has 7,000 parts in stock, and the factory is located half an hour from the Barcelona airport.

Sales are expanding now in Asia, where Quality Espresso has been present since 1999 with an office in Singapore. The Mairali line in particular has found exceptional favor in both Malaysia and Thailand. In both countries the Mairali has been accepted for use in leading beverage/food service chains. These include the Kopiesatu chain of unique mobile espresso bars in Kuala Lumpur and by the 94 coffee bars in Thailand, a chain with more than 50 outlets. In all, Quality Espresso machines are present in 60 nations. Certain proof that the crafting of a cup of espresso is still willingly controlled by the barista.

Harkening to the theme of classical espresso--in looking at the very extensive range of QE models, one is struck by the prominence of lever machines. Lever machines are prominently displayed in the company's show room. This is because demand for them is on the rise, and QE has remained through the years one of the few manufacturers that has stayed true to the lever. It is actually selling more than 1000 lever machines per year. This production is not what runs a factory the size of Quality Espresso's, but it does give further expression to an unusual company with a staunch character.