Coffee wars perking up Des Moines area

Coffee connoisseurs in the Des Moines metro area are getting a boost with the expansion of a local chain that is adding drive-thru kiosks and stores, amping up the competition among caffeine sellers.

Scooter’s Coffee, with four locations, plans to add four stores this year, with an eye on expanding within Des Moines and the suburbs in the next few years for a total of 20 coffee shops, said David Froscheiser, who with his brother Stephen, owns the Des Moines Scooter’s franchise.

Des Moines’ robust coffee offerings include national brewers such as Starbucks, Caribou Coffee and Dunkin’ Donuts, along with locally based coffee shops such as Java Joe's, Friedrichs Coffee, Mars Cafe, Zanzibar’s Coffee Adventure, Smokey Row, Village Bean Coffee Co., Grounds for Celebration, Twisted Bean Coffee Co. and others.

The market is ripe for additional stores, said David Froscheiser. “We think there is a large demand in the metro for convenient, well-located coffee shops with great coffee like ours,” he said.

Scooter's sells coffee, hot and cold lattes and specialty drinks, smoothies, teas, pastries, breakfast items and blended espresso drinks. Scooter's also roasts its own beans.

America’s love affair with coffee and flavored and frothed coffee drinks continues. A 2015 Gallup Poll showed that 64 percent of U.S. adults drink one or more cups of coffee a day.

The introduction of sophisticated home brewing machines, like one-cup coffeemakers, has allowed consumers to make their java at home although many still stop by their favorite coffee shop for a latte, mocha or frappuccino.

The average person spends $21.32 a week, according to Statista.com, a company that collects and evaluates statistics. Overall, the $39 billion coffee and snack shop market grows about 4.3 percent a year, according to IBISWorld, a marketing research firm.

Scooters, based in Omaha, is a franchise company with 135 stores in 10 states. It was founded in 1998 by Don and Linda Eckles, who came up with the name based on their daughter’s nickname and a goal of scooting customers in and out of stores.

Scooter’s tag line is "amazing people serving amazing drinks amazingly fast," and the happy face stickers on all cups of coffee are traditions for the company.

Along with stores with drive-thru service and inside seating, the company has found success with small kiosks of roughly 450 square feet in parking lots and near shopping centers.

“We can go where no one else can,” Froscheiser said. “We like any and all high-traffic roads and parking lots with excess land that nobody is using.”

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The latest additions to the Froscheisers’ development area include kiosks in the parking lot at Sherwood Forest shopping center in Windsor Heights and one in a parking lot at Copper Creek in Pleasant Hill. They also have storefronts in downtown Des Moines and near Drake University. A Scooter’s in Merle Hay Mall is company-owned.

Expansion plans call for stores to open this year on Southeast Grimes Boulevard in Grimes, on the skywalk in downtown Des Moines, West Glen Town Center in West Des Moines, First Street and University Avenue in Des Moines, and 100th Street and Hickman Road in Urbandale.

In all, the brothers hope to have about 20 locations in the next three years.

The West Glen store will be in a new three-bay building along Mills Civic Parkway. The 2,150-square-foot coffee shop will feature a conference room with seating for 10, and audio-visual capabilities for meetings, Froscheiser said.

“People like to meet at coffee shops, but others (without separate rooms) are too loud and crowded,” he said. “I think the demand for this room will be very high.”

The ease of the drive-up kiosks sets Scooter’s apart from the competition, he said. The company’s coffee, which is roasted at its headquarters in Omaha, is also a draw, he said.

The company operated a couple of stores in the metro before closing those sites several years ago. The Froscheisers reintroduced the brand when they bought the development rights to the area and moved back in 2014.

Under the brothers’ development agreement with Scooter’s, they can sell some of the locations as franchises and run others by themselves.

They are eyeing Des Moines, Altoona, Ankeny, Johnston and Waukee as potential locations. “The more we have the more people will catch on,” David Froscheiser said.

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Coffee competition has put the national brands up against local roasters and brewers.

Competitor Gary Meyer who with his wife Colleen Meyer have operated Friedrichs Coffee in Des Moines for 25 years, roast their own beans for their five metro locations. They also have started setting up coffee counters at area businesses.

When Starbucks came to the metro 14 years ago and Caribou Coffee two years later, the local market took a hit, Meyer said. Friedrichs was able to weather the national chain storm and ended up expanding, he said.

“We really try hard to offer good customer service and beverages,” he said.

Also brewing for the company is a new product, nitro coffee, a cold pressed brew infused with nitrogen that is poured from a tap like a beer. The result is a creamy textured coffee that is gaining in popularity in the bigger cities.

“You want to be creative in this business,” he said. “Competition, at the end of the day, is a winner for consumers.”

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Des Moines-based Java Joe’s continues to be a strong competitor because the company sticks to what it does best.

“We are known for our fresh-roasted coffee and making everything fresh, including homemade pastries,” said Amy Brehm, who owns the coffee business with her husband, Tim Brehm.

The Brehms garnered a national spotlight for twice being featured on the news show “The Morning Joe” during the 2008 caucus cycle.

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While competition is strong among coffee shops, Amy Brehm said she tries not to compare Java Joe’s to the others. “We have a great name and a great brand and great customer service.”

They also have added entertainment to the popular downtown Java Joe’s, which also sets them apart.

“Customers have been coming to us for 20-plus years,” she said. “We must be doing something right.”