Originally published June 15, 2007 at 12:00 AM | Page modified June 15, 2007 at 6:19 AM
Retail Report
Zoka's opening third coffeehouse in Snoqualmie Ridge
Howard Schultz wasn't the only entrepreneur inspired by the Starbucks of old, a retailer begun in 1971 by three men determined to bring...
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Seattle Times business reporters
Howard Schultz wasn't the only entrepreneur inspired by the Starbucks of old, a retailer begun in 1971 by three men determined to bring high-quality coffee beans to Seattle.
Schultz ultimately led a group of investors to buy Starbucks, then turned it into a publicly traded powerhouse that aspires to have 40,000 stores worldwide.
Another early Starbucks acolyte, Jeff Babcock, took a different path and now owns a decade-old Seattle chain called Zoka Coffee Roaster & Tea that is gearing up for expansion.
Next month, Babcock plans to open Zoka's third coffeehouse in the former Bibo Coffee space at Snoqualmie Ridge.
He and his wife, Brenda, are giving that shop the signature Zoka look: lots of wood and stone, fresh-roasted coffee and more fresh-baked pastries than most coffeehouses offer.
Zoka also is moving to a bigger, 12,000-square-foot roasting plant in Ballard that will house a second roasting machine, Zoka's bakery and corporate offices.
The second roaster is a vintage Probat machine, the choice of many Seattle coffeehouse owners. Caffé Vita recently bought and is refurbishing its second vintage Probat to use alongside the 1930s-era Probat it has used for years.
Babcock also hired an operations director, a former executive from the Specialty Coffee Association of America, in which Babcock was an early leader.
With Zoka's revenues growing more than 20 percent a year, Babcock hopes to open one or two new Seattle-area stores a year. A new store costs $250,000 to $500,000 to launch, he said.
Babcock started his first coffeehouse chain in Tampa, Fla., in 1984 after graduating from the University of Washington. He bailed out when investors didn't share his vision.
Returning to Seattle, he partnered with a former Starbucks roaster to open the first Zoka near Green Lake in 1997.
This time, Babcock kept large investors out and grew only as fast as his and his partner's funds would allow. It took six years to open Zoka's second coffeehouse, which is near the UW.
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A few years ago, a Japanese firm called M Foods signed a deal to open Zoka-branded coffeeshops in Japan. It has started five shops so far, from which Zoka receives licensing fees.
Babcock, who bought out his original partner several years ago, has focused on building Zoka's reputation by buying high-quality coffee beans — he visits many of the coffee farms himself — and training baristas to compete in international competitions.
Earlier this month, Zoka paid $130 a pound for a rare type of Panamanian coffee he figures will sell for $8 to $9 a cup.
Mary Williams, a former coffee importer who sold beans to Babcock's Florida chain and a former senior vice president of coffee for Starbucks, said she's not surprised Babcock is doing well.
"Jeff is very passionate about coffee and he has really, really good food," Williams said. "It's a way harder business than it looks like on the outside, and I admire that he's still willing to do it."
— Melissa Allison
TidbitsSK Food Group plans to lay off 90 workers in Seattle this summer as it consolidates production of its fresh and frozen sandwiches into a new facility in Reno, Nev., where it will employ about 200. Its headquarters will remain in Seattle with about 25 workers, said President Steve Sposari. SK has a high concentration of customers — cafeterias, restaurants and other retailers — in the Southwest, he said. The company is helping laid-off workers find jobs in the Puget Sound area or relocate to Reno. — MA
Coffee Equipment , a Seattle firm known for its specialized Clover coffee brewers, has created a computer system called CloverNet that allows coffeehouses to track how much business its brewers are doing. The system follows how many cups of coffee are brewed each hour, along with which coffees are brewed most frequently and how often the machines are being cleaned. — MA
Paul McCartney's new album, "Memory Almost Full," debuted at No. 3 on Billboard's Top 200 chart during its first week, Starbucks said, selling 160,541 copies at Starbucks and other retailers. It was McCartney's highest chart debut in a decade, according to the Seattle coffee company whose new label, Hear Music, released the CD. Starbucks alone sold more than 23,000 copies of "Memory Almost Full" on the June 5 release date. — MA
Diva Chocolates in Portland recently debuted a line of chocolate beef jerky in two flavors: Kickin' Cocoa Bean Beef Jerky and Mocha Java Beef Jerky. The products follow Diva's success last year with the introduction of chocolate grilling rubs for beef, chicken, pork and fish. — MA
The Washington Wine Commission said an online survey of 500 Tampa residents showed an increased awareness of the state as a producer of world-class wines after a two-year marketing campaign. — Becky Bisbee
Amazon.com founder Jeff Bezos showed off his company's efforts to sell all things related to Harry Potter during Thursday's annual shareholders meeting. Bezos told the audience Harry Potter has been very good to the company even if Amazon won't make much, if any, money off the release next month of the seventh and final book in J.K. Rowling's series. Amazon is deeply discounting the sale price of "Harry Potter and the Deathly Hallows" and guaranteeing delivery on a Saturday, July 21. After the meeting, he was chided about having reserved only one copy of the book. Bezos then admitted his own children — four under the age of 8 — are still on book three ("Harry Potter and the Prisoner of Azkaban"). — BB
Retail Report appears Fridays. Melissa Allison covers the food and beverage industry. She can be reached at 206-464-3312 or mallison@seattletimes.com. Monica Soto Ouchi covers goods, services and online retail. She can be reached at 206-515-5632 or msoto@seattletimes.com.
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Retail Report is a look at the trends, issues and people who makeup the dynamic and versatile retail sector throughout the Puget Sound region. Every Friday with Melissa Allison and Amy Martinez. Send tips or comments to mallison@seattletimes.com or amartinez@seattletimes.com.

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