This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Digital Skeptic: Wake Up and Smell the Profits

NEW YORK ( MainStreet) -- Sam Penix doesn't want to be shown the money. He prefers to smell his way to profits.

"If you assume some sort of algo or machine is going to do the job," says Penix, owner of the Everyman Espresso shop in Soho, "you might as well not show up to work."

Penix owns not one but two of the highest quality, high-margin, high-end coffee bars here in caffeine-obsessed Gotham.

He specializes in a diabolically tricky end of the custom-coffee game: the so-called microlot brew. In other words, he scours the crazily fractured -- and frankly, skeevy -- global coffee market for the best of the best of those who grow, ship, roast, blend and finally brew coffee. The baristas he hires are as important as any step in the process.

"What people learn in this business is, with so many moving parts you can't be too exact," Penix warns. "If one piece of the chain sucks, the coffee sucks. And the customers won't come back."

Penix is brewing up some impressive numbers in this growing market. Specialty coffee shops such as Everyman account for about a third of the total U.S coffee market, which peaks at $32 billion, according to the Specialty Coffee Association of America, the Long Beach, Calif.-based coffee industry trade group.

He opened this second Soho location about a month ago, and it's easy to see why business is booming. When I happened in for a cup of what Penix told me was a microlot varietal called Pacamara from Santa Elena, El Salvador, it was to get out of the rain. But when I was served what was, without question, one of the best espressos I have had in years, I happily paid $3.50 for a cup, $19 for a pound of roasted beans and $80 for a hand grinder to improve my at-home coffee skilz.

Considering that I -- and everyone I know -- grumbles when paying a third of that for Dunkin' Donuts (DNKN) or the simply dreadful Starbucks (SBUX), when I smell margins like this, I wake right up. And I began pressing Penix for his secrets. Which took about zero effort.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs