{"id":9289,"date":"2016-11-03T21:00:30","date_gmt":"2016-11-04T01:00:30","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/its-the-worlds-greenest-cafeand-its-on-wheels\/"},"modified":"2016-11-03T21:00:30","modified_gmt":"2016-11-04T01:00:30","slug":"its-the-worlds-greenest-cafeand-its-on-wheels","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/its-the-worlds-greenest-cafeand-its-on-wheels\/","title":{"rendered":"It\u2019s the World\u2019s \u201cGreenest Caf\u00e9\u201d\u2026and it\u2019s on Wheels?"},"content":{"rendered":"

\"wheelys-bike-cafe-5\"<\/a><\/p>\n

Wheels Up on Specialty Coffee<\/u><\/strong><\/p>\n

Coffee. It seems to be everywhere. On every block. In every hand and every Instagram. But according to the USDA, U.S. consumption is significantly lower than its peak in 1948 and global consumption is forecast to hit a record low in 2016.[3] What can explain this?<\/p>\n

While consumption by volume is falling, something else is brewing: specialty coffee.* Consumption of specialty varietals rose threefold between 2000 and 2015.[4] And it is costing consumers; Americans spent a record $12.8 billion on coffee in 2015, and are expected to spend $13.6 billion in 2016.[5]<\/p>\n

\"w2\"<\/a> \"w3\"<\/a><\/p>\n

*Specialty coffee typically has one or more of the following characteristics:<\/strong> a) Grown using fair labor practices b) sourced with a focus on crop sustainability c) produced with a focus on quality d) shipped with a transparent and traceable supply chain<\/p>\n

\n

Wheelys Story<\/u><\/strong><\/p>\n

In 2014, a 25-year-old woman named Maria De La Croix was turned down from a job at Starbucks for having blue hair. In need of rent money, she and a few friends hand crafted the first Wheelys caf\u00e9, focusing on brewing fresh coffee.[6] The cart was built on top of a bicycle, enabling the rider to take a full service coffee operation anywhere their bike could go.<\/p>\n

\"w4\"<\/a><\/p>\n

\"w5\"<\/a><\/p>\n

Two years later, Wheelys is operating cafes in more than 45 countries and is backed by investors including YCombinator, Paul Buchheit (creator of Gmail), Justin Waldron (co-founder of Zynga) and its future \u201cWheelers\u201d through numerous rounds of crowd funded pre-orders.[2, 8]<\/p>\n

\"starbucks\"<\/a><\/p>\n

\n

Why Wheelys<\/u><\/strong><\/p>\n

Quick to start <\/em><\/strong><\/p>\n

Compared to opening a traditional caf\u00e9, opening a Wheelys has a much shorter lead time.<\/p>\n

\"w7\"<\/a><\/p>\n

 <\/p>\n

Affordable to start and maintain<\/em><\/strong><\/p>\n

A Wheelys caf\u00e9 costs a fraction of a traditional caf\u00e9 to start, opening up a new market of potential eco-entrepreneurs. Wheelys is also inexpensive to maintain with no rent or electricity contracts.<\/p>\n

\"w8\"<\/a><\/p>\n

\u00a0<\/em><\/p>\n

\u00a0<\/em>What customers want, where they want it<\/em><\/strong><\/p>\n

Wheelys distributes only 100% organic, high quality products.<\/p>\n

\"xi31j6tlqihlkqlbrpka\"<\/a><\/p>\n

 <\/p>\n

Wheelys is also easy to transport, enabling caf\u00e9 owners to even sell in multiple places within one day.<\/p>\n

\"w9\"<\/a> \"w10\"<\/a><\/p>\n

Making the world greener with every cup of coffee. <\/em><\/strong><\/p>\n

Not only are all Wheelys products 100% organic, its cafes are run only on sun and body power with newer models also incorporating wind power. Each caf\u00e9 is not merely CO2 neutral, but carbon footprint\u00a0negative.[2] This is in contrast to a business such as Starbucks\u2019 where a high proportion of GHG emissions (1,342,419 metric tons of CO2 in 2015) are attributable to energy use in its physical stores.[7]<\/p>\n

 <\/p>\n

\n

What is Brewing Ahead<\/u><\/strong><\/p>\n

Looking forward, Wheelys\u2019 business is likely to meet increased demand related to its eco-conscious business model as a growing number of consumers are bringing climate change concerns into their purchasing decisions. In 2015, 45% of consumers answered that they were already \u201cvery heavily\u201d or \u201cheavily\u201d influenced in their purchase decision by whether a product is from a company known for being environmentally friendly.[9]<\/p>\n

\"w11\"<\/a>\u00a0<\/strong><\/p>\n

However, these trends will also bring challenges. As competitors are taking note of these sustainability purchase drivers, many will attempt to flex their own environmental responsibility muscles. When they do, it will be across an expansive global presence, likely much larger and more visible than Wheelys\u2019 current one. Starbucks is already taking steps in this direction, releasing an annual sustainability report with targets such as increasing in-store recycling and cutting CO2 emissions. These targets have become more aggressive and consumer facing in recent years and if done successfully, could pose a threat to Wheelys’ \u201csustainability story\u201d as a leading differentiation point for customers and business owners.[7]<\/p>\n

Wheelys should focus on two key areas in order to take advantage of opportunities related to the environment and mitigate the risks.<\/p>\n

    \n
  1. Wheelys should internally honor its external brand identity. Although Wheelys cafes are \u201ccarbon neutral,\u201d Wheelys should strive towards sustainable practices across its entire value chain from the way the coffee is grown all the way to manufacturing and shipping. In doing so, the company\u00a0can minimize its negative impact on the environment and also avoid scrutiny and backlash over any inconsistencies in its brand identity as the company scales.<\/li>\n
  2. Wheelys should bring its green mission to the forefront and ensure it is baked into each customer touch point and brand experience. This will help attract eco-minded consumers, spread awareness and further differentiate Wheelys. Examples of this include making all Wheelys products compostable or recyclable, subsidizing free coffee on Earth Day or selling Wheelys-branded bicycles to raise transportation pollution awareness. The company can also achieve this through innovations in its caf\u00e9 designs as exhibited in the greenhouse attached to its Science Station (see exhibit below).\u00a0<\/strong><\/li>\n<\/ol>\n

     <\/p>\n

    \n

    The Evolution of Wheelys<\/u><\/strong><\/p>\n

    Wheelys 2 and 2.2<\/strong><\/p>\n

    \"picture1\"<\/a><\/p>\n

    Wheelys 3<\/strong><\/p>\n

    \"picture2\"<\/a><\/p>\n

    Wheelys Science Station<\/strong><\/p>\n

    \"picture3\"<\/a><\/p>\n

     <\/p>\n

    Wheelys 4<\/strong><\/p>\n

    \"picture41\"<\/a><\/p>\n

    \"picture1\"<\/a><\/p>\n

    \"wheelys-3\"<\/a><\/p>\n

     <\/p>\n

    \n

    Sources<\/u><\/strong><\/p>\n

    [1] Peters, A. (2014, April 4). The Bike-Powered Coffee Cart That Could Take On Starbucks. Retrieved from https:\/\/www.fastcoexist.com\/3029125\/the-bike-powered-coffee-cart-that-could-take-on-starbucks<\/a><\/p>\n

    [2] Company website<\/p>\n

    [3] Coffee: World Markets and Trade 2016\/17<\/em>.\u00a0 Retrieved from United States Department of Agriculture website: https:\/\/apps.fas.usda.gov\/psdonline\/circulars\/coffee.pdf<\/a><\/p>\n

    [4] Vellucci,\u00a0M. (2015, December 1). The Continued Rise of Premium Coffee in the U.S.: Will It De-Commoditize Coffee? Retrieved from https:\/\/www.bbh.com\/en-us\/insights\/the-continued-rise-of-premium-coffee-in-the-u-s—will-it-de-commoditize-coffee-\/10966<\/a><\/p>\n

    [5] Mintel Research. (2015, July 13). Mintel in the Media – This week’s highlights, 13th July 2015. Retrieved from http:\/\/www.mintel.com\/blog\/mintel-market-news\/mintel-in-the-media-this-weeks-highlights-13-july-2015<\/a><\/p>\n

    [6] Thorpe,\u00a0D. (2016, August 3). Don’t Tell Starbucks the Future is Coming on a Bicycle Wearing Blue Hair. Retrieved from http:\/\/www.forbes.com\/sites\/devinthorpe\/2016\/08\/03\/shhh-dont-tell-starbucks-the-future-is-coming-on-a-bicycle-wearing-blue-hair\/#7e4999d3360f<\/a><\/p>\n

    [7] Tackling Climate Change | Starbucks Coffee Company<\/em>. (2016). Retrieved from http:\/\/www.starbucks.com\/responsibility\/environment\/climate-change<\/a><\/p>\n

    [8] Indiegogo. Wheelys. A caf\u00e9 in a bike. Deal with it. Retrieved from https:\/\/www.indiegogo.com\/projects\/wheelys-a-cafe-in-a-bike-deal-with-it#\/<\/a><\/p>\n

    [9] Nielsen. (2015). Sustainable Selections: How Socially Responsible Companies Are Turning a Profit. Retrieved from http:\/\/www.nielsen.com\/us\/en\/insights\/news\/2015\/sustainable-selections-how-socially-responsible-companies-are-turning-a-profit.html<\/a><\/p>\n

    All images courtesy of Wheelys<\/p>\n

    (Word count 795 excluded sources and titles)<\/p>\n","protected":false},"excerpt":{"rendered":"

    What do you get when you cross Scandinavian craftsmanship with Silicon Valley cash and add a heavy dose of caffeine? A \u201cbike-powered coffee cart that could take on Starbucks\u201d according to Fast Company.[1] Wheelys is a Stockholm-based coffee store company, without any stores. Instead, the company crafts and sells bicycle-mounted cafes to \u201cyoung, hungry eco entrepreneurs from all over the world.\u201d[2] These carts are well-tested, functional micro stores serving organic goods and run purely on solar and body power. With a price tag that is a fraction (around less than 1%) of ownership of a brick-and-mortar coffee shop, Wheelys is challenging the traditional caf\u00e9 model with its mission to make the world \u201cgreener with every cup of coffee.\u201d [2]<\/p>\n","protected":false},"author":2394,"featured_media":9336,"comment_status":"open","ping_status":"closed","template":"","categories":[1435,614,690,1188,504,632,271,1434,612,615],"class_list":["post-9289","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-beverage","category-coffee","category-consumer-products","category-consumer-technology","category-crowdfunding","category-cycling","category-design","category-organic","category-starbucks","category-starbucks-coffee"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"\nIt\u2019s the World\u2019s \u201cGreenest Caf\u00e9\u201d\u2026and it\u2019s on Wheels? - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/its-the-worlds-greenest-cafeand-its-on-wheels\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It\u2019s the World\u2019s \u201cGreenest Caf\u00e9\u201d\u2026and it\u2019s on Wheels? - Technology and Operations Management\" \/>\n<meta property=\"og:description\" content=\"What do you get when you cross Scandinavian craftsmanship with Silicon Valley cash and add a heavy dose of caffeine? A \u201cbike-powered coffee cart that could take on Starbucks\u201d according to Fast Company.[1] Wheelys is a Stockholm-based coffee store company, without any stores. Instead, the company crafts and sells bicycle-mounted cafes to \u201cyoung, hungry eco entrepreneurs from all over the world.\u201d[2] These carts are well-tested, functional micro stores serving organic goods and run purely on solar and body power. With a price tag that is a fraction (around less than 1%) of ownership of a brick-and-mortar coffee shop, Wheelys is challenging the traditional caf\u00e9 model with its mission to make the world \u201cgreener with every cup of coffee.\u201d [2]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/its-the-worlds-greenest-cafeand-its-on-wheels\/\" \/>\n<meta property=\"og:site_name\" content=\"Technology and Operations Management\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/Screen-Shot-2016-11-03-at-8.54.10-PM.png\" \/>\n\t<meta property=\"og:image:width\" content=\"709\" \/>\n\t<meta property=\"og:image:height\" content=\"262\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/its-the-worlds-greenest-cafeand-its-on-wheels\\\/\",\"url\":\"https:\\\/\\\/d3.harvard.edu\\\/platform-rctom\\\/submission\\\/its-the-worlds-greenest-cafeand-its-on-wheels\\\/\",\"name\":\"It\u2019s the World\u2019s \u201cGreenest Caf\u00e9\u201d\u2026and it\u2019s on Wheels? 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