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Perfecting the drip

The coffee business booms as consumers demand specialty drinks

Tall or Grande. Latte or Americano. Chai or Yerba. It's all part of a vocabulary that's become as American as the term "supersize."

While the American coffee craze is nothing new, the specialty coffee industry has exploded in the last decade and the Lansing area is no exception as people of all ages, especially students, flock to the same hangout: the local coffee shop.

MSU graduate student Jiyoung Hwang typically gets a regular cup of coffee when she studies at Beaner's Gourmet Coffee, 270 W. Grand River Ave., but when she wants to treat herself, she often buys her favorite beverage there, a Mocha Mocha.

The specialty beverage contains a mixture of different chocolates, coffee and whipped cream.

Hwang said she goes into the shop at least four times a week and night after night the place is packed with students. It's the "Starbucks generation," Hwang said, a specialty coffee culture of people willing to pay extra cash for the exact drink they want - and they do it often.

Last year alone, specialty coffee was a $9 billion industry, up from $7.5 billion in 1999, according to Mike Ferguson, spokesman for the Specialty Coffee Association of America.

Specialty coffee businesses, such as Starbucks, emerged in the 1980s when coffee-bean companies began selling drinks, Ferguson said.

There is a simple equation as to why the industry has exploded like it has, said Jeff Elsworth, an MSU hospitality business assistant professor who specializes in food, beverage and restaurant operations.

People are willing to trade money for time and value, he said. At fast-food restaurants, people pay for time they gain from the convenience of a quick meal, while they find value at a sit-down restaurant. However, coffee shops are able to capitalize on an in-between niche that combines time and value.

"McDonald's didn't discover fast food, they perfected it," Elsworth said. "In the same way, Starbucks didn't discover the coffee shop, but they perfected it."

Americans are willing to pay extra for specialized coffee products because they're better, Ferguson said. Specialty drinks can be pricey because coffee beans must be carefully sifted through to pick out the bad beans. A single bean can ruin a whole batch, he said.

"People are so thrilled to taste something so enjoyable, they are easily converted," Ferguson said.

It is not just the coffee industry that has taken over the United States, said Bob Fish, CEO and joint creator of Beaner's Gourmet Coffee Corp., a chain of coffee houses that got its start in East Lansing in 1995. Specializing is all part of an American consumer culture that is demanding higher quality, even in lower quantities, Fish said. For example, the bread and beer industries also have exploded as consumers call for more unique items.

"People are demanding things exactly the way they want them," Fish said.

The change is clear in terms of health, as well, said Ronda Bokram, an Olin Health Center nutritionist.

Coffee used to be considered a "free" drink, meaning it has no calories, she said.

"People used to drink coffee and maybe add a little cream and sugar," she said. But while people are drawn to a variety of drinks today, they should remember to include them in their daily calorie count and that they add up quickly.

Even if plain coffee is the drink of choice, caffeine found in coffee and tea dehydrates, Bokram said. To offset this, people should make sure to have plain water during trips to the coffee shop, she said.

"The best idea is to not overdo one thing," Bokram said.

Europeans have long enjoyed specialty coffee and it is only recently that Americans began understanding what all the fuss was about, said Fish, an MSU alumnus who grew up overseas. Coffee was just a source of caffeine for all-night study sessions and morning pick-me-ups back then, Fish said.

"Coffee was really bad in this country," he said. "All that stuff was just colored water."

Many coffee shops also have cashed in on college students seeking a comfortable place to relax and study. College students, in particular, seek the cafe environment where they can have a specialty beverage in a cozy atmosphere. The key, Fish said, is that the drink is made exactly for the consumer.

"You can order exactly what you want," he said.

Most mornings, the Beaner's Gourmet Coffee shop, 1331 E. Grand River Ave., is filled with middle-aged professionals grabbing a specialty cup of coffee on their way to work. But evenings are a different story, as the East Lansing coffee shop is filled with students, Ashlee Aubin, a political science senior and a shift leader at Beaner's, said.

It's a good deal, Aubin said. For a few bucks, a student buys a drink and a place to study for a few hours.

Sara Ray, manager at Espresso Royale Caffé, 527 E. Grand River Ave., said the downtown East Lansing cafe attracts students with its open-mic night, free wireless Internet and drink specials.

The coffee shop environment is a social one and the products offered are a big draw, but the downside to studying patrons is that some forget they are at a business, not a study hall, Ray said.

Starbucks Coffee Company, 401 E. Grand River Ave., thinks of its stores under a "third place" concept, said spokeswoman Valerie Carlborg.

"For college students, this may mean that your home on campus is the first place, class is the second and your neighborhood Starbucks the place you go in-between," she said. "Students can come in to grab a quick cup of coffee on their way to class, catch up with friends or relax with a good book after a hectic day."

Amanda Fitch, a medical technology senior and Beaner's shift manager, said she sees some regulars at the coffee shop from the time she begins a six-hour shift to the time she leaves for the night.

"For a student to be able to throw down $5 at a coffee shop is a new trend," she said. "But it's a different generation."

But Elsworth said coffee shops have been a popular part of college campuses since beatniks frequented them in the '50s, a fashion similar to the vogue of jazz clubs during the '40s.

"Anywhere on a college campus that is perceived to be more progressive is going to be popular with students," he said. "It's more surprising that now they're popular everywhere else."

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