Insights and Stories

Something strange is happening to coffee shops: the chains are getting smaller while the independents are getting bigger and bolder. Big chain cafés are saving money by opening smaller premises to minimize costs and concentrate on walk-through trade. Meanwhile, independent cafés are capitalizing on their already cozy premises by delivering personality, quality and good company to customers looking to sit down with a brew and a pastry — and maybe even return to the counter for more. The specialty coffee shop market is tipped to grow by $39.17 billion from 2022 to 2027, driven by the indie sector. This is the dream of many indie café owners: to share not just their passion for coffee but a unique social space with their neighbors. However, with the pressure of rising prices and big-name competition, entrepreneurs must weigh every creative and business decision against the economic reality. To celebrate the ones doing it the best, we identified the areas with the top-rated independent coffee shops around America — and the indie cafés that customers love the most. What We DidFollowing our previous study celebrating the highest-rated independent restaurants in the country, we collected the five-star rating figures for every non-chain coffee shop in America’s biggest major cities. Then, we ranked the cities based on the weighted average five-star rating across their indie cafés. Finally, we identified the highest-rated independent coffee shops nationwide and in every state. Key FindingsKnoxville, Tennessee, has America’s highest-rated indie coffee shops, with an average rating of 4.59.The highest-rated indie café in the U.S. is The Espresso Bar @ Taos Valley Lodge in Taos, New Mexico, with a customer rating of 4.93.New York City’s top-rated indie café is Frisson Espresso in the Hell’s Kitchen neighborhood (4.76).There are 52.18 independent cafés per million people in New Orleans — more than any other major American city.Knoxville is the Home of Great Indie Coffee ShopsFirst, we found the average rating for independent coffee shops in America’s most populous major cities. Knoxville, Tennessee, is in the top spot, with an average rating of 4.59. “We have a fantastic community here in South Knoxville,” says former Honeybee Coffee Company barista Mitchell Bustillo. “We can really have a good conversation with whoever comes in.” U.S. Map showing the cities with the highest rated independent coffee shops Knoxville’s top-rated indie café is Coffee & Chocolate on Union Avenue, with 94 out of 129 customer reviews labeling it as ‘Excellent’. Coffee & Chocolate is “[p]erhaps the smallest coffee shop in all of Knoxville,” according to Knox News, and famed for its macarons, hand-painted chocolates and sweet-smelling environment. “We were in town just for one day and discovered this small gem of a coffee and chocolate shop,” writes one reviewer. “The coffee is so good we went back twice in one morning. The chocolates are beautiful mini works of art–you almost hate to eat them.” Although Knoxville has the best indie cafés, you’re more likely to stumble upon an independent coffee shop in New Orleans — where there are a stunning 52.18 indie cafés per million inhabitants. This is significantly more than the next densest big city for indie cafés, Orlando (37.41). U.S. map showing the cities with the most independent coffee shops per capita “New Orleans has a longer relationship with coffee than pretty much anywhere in North America,” writes Mike Scott for New Orleans Magazine. “Given its proximity to coffee-cultivating locales in the Caribbean and South America, the Port of New Orleans has been the de facto entry point for untold millions of pounds of coffee beans dating to the late 1700s.” “A worldwide corporate Goliath, [Starbucks] represents exactly what’s loathed by New Orleanians who like to think the city’s culture is special,” says C.W. Cannon. “[C]offee, and the places that serve it, are especially beloved symbols of local identity.” Taos Espresso Bar is America’s FavoriteNext, we identified the top-rated indie cafes in America. We found that The Espresso Bar @ Taos Valley Lodge in Taos, New Mexico, is America’s favorite indie, with an average rating of 4.93. The Espresso Bar serves breakfast and fresh Peet’s Coffee brews (a San Francisco Bay Area-based specialty coffee roaster) from the handsome premises of the Taos Valley Lodge and regularly offers new specialties. “The coffee was delicious and so was the danish!” writes a reviewer. “The space is warm and cozy but big enough to have your own conversations without bothering anyone else!” Infographic showing the ten highest rated independent coffee shops in America Texas is the only state to feature two cafés among the top ten: the Iris Bagel and Coffee House in Arlington (4.86) and the Estate Coffee Company in San Antonio (4.80). According to its regulars, the Iris is a veritable embodiment of what makes a local indie café great. “This is an amazing gem in my neighborhood,” writes one reviewer: “My out of town guests require me to bring them here. The coffee is cheaper and better than Starbucks. I know some Starbucks employees come here for their latte. (Shhhh). I love the lox special & they know I like it without sprouts so I don’t have to ask anymore. The owner knows many people by name & he is interested in the lives of people who walk in.” California’s Best Indie Café is Right On the BeachFinally, we identified the top-rated independent coffee shop in every state. New York’s is Frisson Espresso in the Hell’s Kitchen neighborhood of New York City, with an average rating of 4.76. Tulian Sanchez and Robert Melo established Frisson in 2014, united “by their passion for coffee and a desire to create the perfect “first sip experience.” […] Tulian’s expertise as an espresso machine technician and Robert’s entrepreneurial spirit set the stage for Frisson Espresso’s journey.” “Real coffee made by people that care about what they are doing,” says one reviewer. “We found this place because of its reviews and we were not disappointed. If these are not the nicest baristas in New York then they must be

In simple terms, “operations” is the internal engine that powers your business. If you are currently trying to extend your product line, open a brand in an up-and-coming neighborhood, resolve a purchasing inefficiency or improve customer loyalty, then you should look at your company’s operations. In this article, we will explain the basics of operations and cover key differences in operations management for small businesses across different industries. What Is Operations? When we talk about “operations” in the context of a business, we are referring to the processes and inner workings that allow a company to run as efficiently as possible. Whether you make products, sell products or provide services, every small business owner has to oversee the design and management of the behind-the-scenes work that makes up their company’s operations. Well-run operations is a critical and often overlooked source of a business’s success. It can help streamline costs, allowing you to do more with less and maximize the impact of business funding such as a business line of credit or term loan. At a small business, you may not want to dedicate a single person to an operations role. Rather, both employees and owners should understand how the business works and how various processes impact day-to-day tasks. Regardless of your industry and type of business, your first approach to business operations will most likely include the design, planning, management and ongoing improvement of processes for the production of goods or provision of services, management of your team and management of the company and its finances. Business operations should grow and evolve as your small business grows. In larger organizations, business operations teams collaborate with internal teams and are responsible for managing and improving four major elements: When done correctly, implementing business operations in your business will improve efficiency and productivity, leading to higher customer satisfaction while increasing revenue and profitability thanks to more streamlined processes and reduced costs. How to Optimize Operations for Different Types of Small Businesses The specific definition of operations will depend on your industry and the stage your business is in. Sometimes, improving operations means thinking strategically about your systems and processes. Other times, it means being part of the on-the-ground work to bring every aspect of a project, from tiny to huge, to reality. Whatever your needs may be, developing an operations manual is usually a good place to start. Here are some examples of operations in different industries and how mastering your processes can contribute to success. Operations for a Retail Business As the owner of a retail business, your daily goal is to stock the items customers want at a price they’re happy to pay. For your operations, that means perfecting your inventory. Take a look at the records from last season: While some of the answers will be obvious when you crunch the numbers and analyze the results, another operational update might be to implement a software program that can manage and optimize your inventory in real-time so you can address these questions more quickly and more often. Operations for a Restaurant Business Food businesses have even more challenging inventory problems than retailers since their product is perishable. At a restaurant, operations apply not just to foodstuffs but also purchasing, preparation and the costs of food, beverage and labor. You’ll also be concerned with customer service and customer experience at your restaurant. As you look to streamline your operations, you can think on the following questions: There’s a big range here, so think through who should be in charge of leading the different aspects of operations, since it likely won’t fall to one person. Operations for a Service Company Service companies can divide their operations into two key buckets: client-facing and business-related. As you analyze the performance of both, you will be able to assess how your current processes for communicating, collaborating and managing projects affect the services you’re offering. Start by thinking through your client interactions: For example, if client projects are continually coming in over budget, one big operational concern would be the methods used to calculate your estimates at the beginning of a job. Operations for a Product Manufacturing Business The origin of the term “operations” comes from companies that made physical goods. Back when economies were industrializing, inventive businesses tried to add efficiencies wherever possible. That led entrepreneurs like Eli Whitney to pioneer the method known as parts-based assembly so that cotton gins and other products could come to market more rapidly, cheaply and consistently. You don’t have to reinvent the assembly line if your small business makes products, but you should take a good look at how you purchase, store, make and ship your merchandise. Consider your methods from a time standpoint: Operations for a Digital Company Much of a digital company’s value lies in its personnel. For you, operations have a lot to do with finding optimal ways of hiring, training and mentoring your staff. Tools to help with employee retention and satisfaction are wrapped into this, too. In order to improve your operations, start by thinking about the following questions: Wrapping Up Operations is key to running a business that’s always getting better and better at what it does. By taking a look at the day-to-day activities that make your business possible and asking yourself questions about existing processes, you’ll be able to define and optimize what operations means for you and your organization. This content is for educational and informational purposes only, and is not intended as financial, investment or legal advice.