What's Hot: Specialty Coffee

Did you grab a cup of java this morning to enjoy while checking your email? Like technology, specialty coffee is continuing in its skyrocketing appeal and availability.

According to the National Coffee Association USA (NCAUSA), 49% of Americans age 18 or older drink some type of coffee beverage daily, and many of them are waiting in lines at specialty coffee retailers to get their fix.

The cafe segment of the specialty coffee market -- including cafes, kiosks, carts and coffee bean roaster/retailers -- reached $8.47 billion in 2003 and continues to grow. And it's become clear that, even in a world where Starbucks(SBUX Quote) has been crowned the unofficial figurehead of specialty coffee, franchises are reaching for a piece of the bean.

The coffeehouse scene exploded about a decade ago, and became the destination de rigueur for social interaction. Marty and Louise Cox enjoyed hanging out at their local Long Beach, Calif., coffeehouse enough that they shucked their corporate jobs in 1995 and opened their own java spot called It's a Grind. Starbucks' popularity was growing at the time, but the husband and wife weren't concerned. "There's plenty of room," said Marty, who added their neighborhood welcomed the alternative. Marty says they try to be the neighborhood favorite, are active in the community and pride themselves in remembering customers' favorite drinks and life events, such as children's births.

Franchising since 2001, It's a Grind has grown to 50 locations and spread beyond its West Coast roots eastward to New Jersey. Starbucks has also grown tremendously during that same period, but the Coxes don't plan on slowing down their plans to expand to 250 stores by 2007. "It's not realistic to compete with Starbucks -- we just really want to focus on being a great coffeehouse," Marty says. "The consumer base has grown to appreciate good quality coffee. It's like fine wine -- when you've had it, you don't go back to drinking cheap wine."