It is hard to believe that a little over two months has passed since we first opened Moonbow Tipple Coffee & Sweets – the anniversary would be February 30, if only February had 30 days. It feels at once like something totally new and also something that has been part of our lives forever.
Who knew a coffee shop in Harlan could do so well? Now, when I say that, I want to be clear that nobody is going to get rich off of coffee. Take a medium cup of coffee, which we sell for $1.90. Between the cup, the sleeve, the lid, and the beans, the cost to us is around a dollar. We’d have to sell somewhere between 9 to 18 cups per hour to recoup our cost on labor (labor is our biggest cost). That would mean selling a cup every 3 minutes! And that doesn’t even touch how we generate the income to pay other major expenses, like rent and utilities. Places like Starbucks rely on volume for profits, and when you open up a coffee shop in a town of 1,425 people tucked away in some serious mountains, you know volume is not going to be your best business strategy.
And still! Still, we can say the coffee shop is doing well. If you look at projections for a town the size of Harlan, you would calculate that we might be able to sell 30 drinks per day. Of course, a coffee shop, like any other business, has a variety of products that generate different amounts of money each. Still, a coffee shop that sells only 30 drinks per day would be a major gamble, making it very difficult to recoup our costs. So it is no small thing to say that the demand for coffee shop goods has far exceeded projections. In fact, now that the excitement of our initial opening has cooled down, we are reliably selling 60 or more drinks per day. To break it down more simply, on our slower days we generate around $200 in revenue. About $100 goes to the costs of the goods we sell (COGS) and about $100 goes to pay our workers. The busier days, like Fridays, we might sell around or over $300. Those extras accumulate to cover our other costs. Clearly, there is not a lot of room around the edges, but it is not losing money. And let me tell you, I worried very much about losing lots of money.
Of course, the motivation behind the coffee shop has never been profit-driven, and we never thought it would be the kind of venture that would intrigue investors. Instead, we wanted to provide good jobs in Harlan along with a great place to get an excellent cup of coffee and high-speed internet. We dreamed of a setting where people could meet, business could be done, and kids could go and hang out after school. I think all the time about the nurses and teachers in Harlan County, who work so hard and deserve a little escape—and maybe a little energy to keep going—in a cup of something warm and indulgent. As we have said before, it was a need that we felt called to meet.
The people of Harlan County apparently felt that need as well, and the reception has been nothing short of magical. We sold coffee on days that major snow closed down roads. We sold coffee on a day when historic flooding closed the flood gates of the town. On our very first day we sold over 300 drinks. We have wonderful regulars as well as people who are in Harlan on business. When you are there, it feels like a thriving little business on Main Street, as hip as anywhere else.
To me, Moonbow Tipple has been one of the most fun ventures we have ever taken on. We have a great staff who work hard and care about the business. We have a wonderful partnership with Taco Holler, a local woman-owned food truck and catering company who supplies us with most of our baked goods. We were able to partner with our good friend, Mike Mayes, of Heine Bros. Coffee to supply organic and fair-trade coffee that is certified Kentucky Proud (that is a post in itself, because the coffee is amazing and I love it). The historic Buttermore building is simply gorgeous, and when I am in the coffee shop I feel so good about how it looks and feels. I feel proud of the quality of the drinks we are selling. Our goal was to create Appalachian Magic, and to me the setting does feel magical, a little reprieve from the worries and cares of the world.
So what is next for Moonbow Tipple? Here are some of the ideas we are toying with:
Saturdays: Right now we are open Monday through Friday, but we consistently hear people ask about Saturday. We are trying out some Saturday hours tomorrow, and if we get a good response we might start being open regularly on Saturdays.
Community events: We have a beautiful stage in our building, just calling out for local singer-songwriters, and poetry, too. Maybe we will try something the first Thursday evening of every month and make it a series? In the meantime, we are hosting a Super Smash Bros. tournament for 606 Gaming Lounge tomorrow, and I am excited for something fun for youth.
Food: We are dipping our toes in the water of food. We have started selling biscuits in the morning. A few basic lunch items are a possibility. Maybe soup and pre-made sandwiches, to start.
Private event rentals: The space is beautiful, and lends itself well to parties and showers. We are considering private event rentals, but first need to decide rates and availability.
Delivery: There are a lot of logistics to cover for delivery, but it is something I think we are almost ready to take on. Almost. I think we could deliver to a few key locations, like the hospital and maybe some schools or clinics. We’d probably need a minimum order to make it viable.
As always, when we experiment we start small and see how it goes. Every business is a series of hypothesis testing, and you don’t want to go all out in case your hypothesis was incorrect. Still, we look forward to growing and improving our little coffee shop. In the meantime, we are just happy to create Appalachian magic on Main Street in Harlan.