COFFEE, COMPUTERS BRING NEW LIFE TO BOHEMIAN TRADITION.

Byline: Deborah Adamson Daily News Staff Writer

A message from Ms2Cute4U glimmers on the computer screen for Bjorn Olsen of Studio City: ``Nice to meet you Bjorn . . . I'm Rory.''

After some chitchat, Olsen, a stuntman from Norway with shoulder-length blond hair and olive skin, tells her: ``I've got a great tan.''

Olsen is sitting at a rented computer in a darkened corner of Industry Java & Jive Cafe on Cahuenga Boulevard, just south of Universal City.

For $8.50 an hour, Olsen can log onto America Online and surf the Internet all over the world while enjoying an espresso.

``I'm checking e-mail, wasting some time,'' said Olsen, not glancing up from his computer. ``If you don't have anything else to do, it's fun.''

Another customer, Tony Cook, brought his own laptop to Industry Java & Jive to work on a screenplay.

``I find that it's a good substitute office,'' he said.

Nearby, Gregg Rainwater had his own laptop propped up on a small table.

Industry Java & Jive has electrical outlets easily accessible from customers' tables, a feature Rainwater doesn't see at many regular coffee shops.

``It's a place where I could plug the old computer in,'' the screenwriter said, taking a sip from his oversize coffee cup.

It beats staying at home, Rainwater believes: ``You don't have good latte.''

Across America, cafes are offering access to the Internet along with their menu of exotic coffees, muffins and sandwiches.

Owners say it's a great mix: People sit down to relax or socialize over a cup of coffee, so why not do the same thing on line?

``Coffee means you have to stop and take the time to network,'' said Matthew Barasch, owner of Industry Java & Jive.

There are approximately 260 cybercafes in the country, and at least 400 around the world, said Angel Williams, co-founder of the 3-month-old International Association of Cybercafes in Manhattan.

There are at least six in the Los Angeles area alone, in Santa Monica, Venice, Long Beach, La Verne, Fullerton and Costa Mesa.

Cyberia cafe in London started the trend in early 1995, Williams said.

The idea came from mixing two hot concepts - gourmet coffee and the Internet.

``It's two businesses rolled up into one,'' Williams said.

Cybercafes offer fare ranging from snacks to full-fledged entrees for patrons, with between two and 25 computers humming nearby.

Hardware runs the gamut from a basic IBM PC 286 for e-mail to Apple MacIntosh workstations.

Many cafes also have scanners - which electronically read documents into a computer screen - as well as laser printers and teleconferencing services.

With teleconferencing, patrons around the globe communicate via a small camera perched on top of a computer. A visual is projected on the screen.

Cafes also may rent out e-mail addresses - cyberspace's equivalent of the post office box rental.

Often, they also offer word processing and graphics services.

People use the Internet to do research, access news, chat on line or even track Federal Express packages, Williams said.

It's important to offer services that most homes won't have, she said. Otherwise, there's little reason to pay for computer use at the cafe.

But cutting edge technology isn't cheap.

The cost of installing hardware and software, hooking up to the Internet, offering teleconferencing and other services could total $50,000 or more.

That's how much it cost Cyber Java in Venice, the first cybercafe in Los Angeles, to install a stable of 11 computers and a high-speed data line.

But it's paying off.

Only 30 percent of the cafe's revenues come from food. The rest comes from the Internet and related activities such as computer classes and special events.

``We found that our most direct competitor now is Kinko's,'' a 24-hour office services chain, said Rom Agustin, co-owner of Cyber Java.

But Kinko's will be hard-pressed to beat this: Cyber Java customers can teleconference with other cafe patrons in New York, London or Paris while sipping their favorite gourmet coffee.

``It's an extension of the social atmosphere of way back when they sit around and converse about politics and art,'' Agustin said.

``Now they can do it not just in a real cafe but in virtual cafes,'' he said.

This and other gimmicks give restaurants a competitive edge, said Michael Kasavana, a hospitality business professor at Michigan State University in East Lansing, Mich.

The top 25 percent of cybercafes have a profit margin of 13 percent, compared with around 8 percent for the coffee shop industry, said Ted Lingle, executive director of Specialty Coffee Association of America in Long Beach.

``The specialty coffee business runs the gamut as people look for a new twist,'' Kasavana said. ``I think (cybercafes) have a tremendous future.''

Williams' trade group is working to ensure that future by helping cybercafe owners run their two-prong businesses well.

``Oftentimes, someone starts a cybercafe who is either techno-savvy or they are strong in (running) the coffee area,'' she said. ``Each end of the business needs to be supported simultaneously.''

One way is by encouraging cafes to hire an Internet consultant who can teach patrons and troubleshoot computer problems.

Industry Java & Jive's Barasch, who is also an entertainment attorney, is more comfortable with law books than computers.

That's why he made a deal with a USC professor to come in two nights a week and assist computer users in exchange for a slice of the revenues.

Another problem is that some customers mess up the computer configuration or download other software, Agustin said.

``We have to reload our software every day,'' he said.

Surprisingly, an obvious hazard does not seem to be a big problem: Coffee spills on keyboards and mice.

``We haven't had a coffee spill on our machines yet,'' Barasch said. ``I am shocked.''

Agustin said there's only been one spill at Cyber Java - he did it himself.

Despite the challenges that come with running two different businesses under one roof, Agustin is confident that cybercafes will catch on. He plans to open a second Internet coffee house in Los Angeles by fall.

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2 Photos

Photo: (1--Color) Gregg Rainwater, left, and Eric Gutier rez work on screenplays while sipping lattes at Industrial Java & Jive.

(2--Color) Tony Cook rents a laptop at Industrial Java & Jive.

Michael Owen Baker/Daily News