Since Mike Going served his first cup of coffee at Calgary's original Good Earth Cafe 14 years ago, the city's coffeehouse landscape has been transformed dramatically, with the major chains putting a stranglehold on the market and many mom-and-pop operations falling by the wayside.

Yet, Going's Good Earth, a cafe that specializes in quality coffee and wholesome food, has quietly managed to carve out a niche in the Calgary market, steadily growing to eight locations even during a massive blitz in the coffee market by giant corporations such as Starbucks.

And now Going, owner and president of Good Earth, is taking his winning recipe on the road.

The 47-year-old product of a Calgary-area ranch and part-time racehorse breeder is champing at the bit these days as he and his wife/business sidekick Nan Eskenazi gear up for an aggressive expansion and franchising of the Good Earth brand beyond Calgary.

What about Starbucks and the other big-time coffee brewers?

Well, put the coffeepot on and listen to the remarkable story of a no-nonsense coffeehouse entrepreneur who doesn't pull any punches in discussing the competition.

1. What was it like growing up on your family's ranch near High River?

"When you grow up on a ranch and you're working on a ranch, you're working from the get-go. That's the thing about living on the country. You have a lot of responsibilities, looking after all of the livestock, operating equipment and stuff like that. To this day, if we have someone who applies for a job with a farming or small-town background, we typically know that they have a good work ethic."

2. Why did you leave a career in commercial real estate to start Good Earth in 1991?

"I returned to Calgary after working in Vancouver and my wife, who is from the Seattle area, came with me. We saw that there was no coffee culture in Calgary at that time. We spent some time developing the concept of Good Earth and then opened our first cafe. We knew there would be competition and that's why we felt it was important to package our coffee with foods. The slogan we developed 14 years ago was, 'a coffeehouse with good food,' and it still is that today."

3. How did you finance the startup of Good Earth?

"The first one that we opened cost around $100,000, so it was really done on a pretty small budget. We cobbled together some money we had and borrowed some money from relatives - you know, the typical 'love money,' as they call it. We had been on some research trips to San Francisco and other places to get some ideas. We put all of our thoughts together, came up with the concept and opened up the first location, which is still there now. It's a free-standing building in lower Connaught, just off 17th Avenue (in southwest Calgary). It was very successful from the first day out. We seemed to have struck a chord with Calgarians. It was a fresh concept and frankly, it still is today. Back then, bringing on really good-quality coffees and combining that with simple, fresh, wholesome foods with a really eclectic atmosphere was something that Calgary really hadn't seen."

4. Are you a health-food aficionado?

"Not particularly. Growing up on a ranch, food was a big part of what we did. Whether it was a branding bee, haying or any sort of get-together where we had crews come out, my mother and my sisters - as well as working outside - would always put on a good spread of food. So I've always appreciated good, wholesome, authentic foods. I believe in eating well. All of us would do better by eating healthier, but we have never been preachy about foods we sell at Good Earth."

5. You are choosing coffee at Good Earth to protect eco-systems, the farmers you buy it from and the communities where it's picked. How important is that to you?

"It is very important. Everything we do and the decisions we make in running our company are based on a set of values we have. We're actually just launching our house-labelled coffee in April of this year, which will be 100-per-cent organic, shade-grown and fair trade (purchased). Fair trade means that even if the market price for the coffee fluctuates somewhat, the farmers who actually grow the coffee beans are offered a guaranteed price, so it doesn't dip below a certain threshold. We have had to raise our prices over the years. Coffee prices escalate, but actually what drives our coffee prices more than the coffee beans themselves is dairy (prices). Dairy tends to fluctuate and certainly goes steadily upward. Having said that, to launch our new brand of coffee we aren't raising our prices. We're actually taking a 15- to 20-per-cent increase on our wholesale price without raising our retail prices. Our coffee is grown in a band of countries that border the equator from Indonesia over to Central America. It's roasted in Calgary for us, and always has been, by the Fratello Coffee Company. They are a family business much like ours and we have grown together."

6. Who's your major competition in Calgary right now?

"We're certainly up against the big brands, those being Starbucks and Tim Horton's, primarily. They're huge and very successful but they are both pretty focused on what they do. We think that we are different enough and have been around long enough to compete against them. What we're doing right now is preparing for a significant expansion of our company through franchising. We now have eight company-owned cafes and we'll maintain those. Our split on sales is about 50 per cent coffee and beverages and about 50 per cent food. I would venture to guess that Starbucks is probably 85- to 90-per-cent liquid coffee (sales) and then some food and coffee paraphernalia. They do very well because they are so aggressive at offering market share."

7. What kind of potential do you foresee for your expansion of Good Earth through franchising?

"Franchising is really based on having a strong enough concept that can be repeated in a number of locations. I have a new partner, Bruce Fox, who joined our company in the last 12 months and has 20 years of franchise chain-restaurant development behind him. We, quite frankly, haven't been in the position to make this move before Bruce came on board. Now, with his expertise and our concept and vision for the company, we've got a pretty formidable team. We plan to double the number of stores we have in the next 12 months to take us up to 16, and then in the following year, our second year of franchising, to double to 32 stores. I would expect that we'll be picking up the pace of our expansion three years down the road."

8. What's the most difficult challenge in expanding your business?

"A key for us, without question, will be the ability to access real estate ahead of our competitors. The problem, as I see it, in the shopping centre retail business in Canada is that so much property is owned by so few owners and there are so few brand names that go after sites. It's hard for smaller operators, no matter how good they may be, to get into the prime locations. We are just getting ready to sign up our first franchisee and we'll be making an announcement soon."

9. What markets are you planning to tap into?

"We'll be in Edmonton with a few stores before this year is out and then expanding from there.

"We'll concentrate on Western Canada to begin with, Alberta first and then we'll move west."

10. What's been the bottom line to your success with Good Earth?

"It's the concept itself, of matching a full range of both brewed and espresso coffees with good food. And I think we have executed it fairly well. We're always working on getting better at our presentation of our products and the training of our staff. As a small company, we put a lot more money and effort into training than smaller operations usually do. Having said that, we need to step it up a couple of notches to reach a broader market. We plan to open drive-through locations in the near future and speed of delivery is vital."

11. Are the company's core values a direct reflection of your own?

"Yes, they are. We established Good Earth because my wife and I enjoyed good food and great coffees in an interesting environment that promotes meeting other people: A community gathering place. In my mind that's what a coffee house really is - a place where people come together."

12. What's it like being in business with your wife?

"There are really excellent parts. There have been times over the years, when we were going through more difficult times as a company, where it was hard to get away from the stress and the strain. It's like anything else. When things are going well, it's great, and when things get a little tougher, it's hard to not look at those things virtually 24 hours a day. But we've been doing it for 14 years now and we're still happily married."

13. Do you lose sleep over what Starbucks and Tim Horton's are doing?

"You know, I used to. But then I realized that, you know what? It's not about them. It's about us really being able to expand and execute our concept. As long as we can do that, then we'll have lots of opportunities and success ahead of us. They (Starbucks) have never really done food very well. They've tried to get better at it and I don't know if they will ever get very good at it. But we will always be better at food than they are. There are 50-plus Starbucks in (Calgary) and, quite frankly, there is getting to be a little bit of Starbucks fatigue out there in the minds of the consumers. It's just pure proliferation that's causing that. In a marketplace like Calgary, they are going to end up with 80 to 100 stores. Yes, they are expanding and, yes, they are successful, and Good Earth will not be running them out of town any time soon. But if we can offer consumers and landlords an alternative, they will be happy for that. That's what our research has told us. In our discussions with landlords, we've heard people say, 'Hey, you guys are a fresh new concept and we would like to talk to you about our centres in Winnipeg, in Saskatoon, in Edmonton or Calgary.' When these national and international brands expand the way that they do, two things happen: Consumers lose choice and small businesses lose opportunities for growth."

14. What's your view of the success story of Tim Horton's?

"They're amazing. They could probably open up on four corners of an intersection and have a lineup at each one. It's that brand. The big successful retailers will all tell you that it's about building the brand and that the products come second. That's kind of a sad statement and, rightly or wrongly, we've always put a lot of emphasis on the quality of our products. We put the substance before the hype. I'm not a Tim's customer, either. I look for a little higher quality. But they do well and they're amazing. They deserve all the credit they get."

15. How do you see food and coffee trends changing in the next 10 years?

"More people will be aware of better-quality coffee and I think that can only serve to help companies like us. You can't pick up a publication these days that doesn't talk about obesity, food content and nutrition, etc. I just think there will be a general trend to move towards nutritionally better food. Who can really deliver that, and who will try, remains to be seen. We've been doing that for 14 years now and really, in a lot of ways, a bigger cross-section of society has caught up to what we have been doing. That's why we are in the right place at the right time. We have the right brand to introduce ourselves to more people in the mainstream."

16. What's the most gratifying part of the job for you?

"Walking into one of our cafes and seeing it three- quarters full of people visiting and enjoying themselves and our products. And seeing our staff energized and providing great customer service. That's what it's all about to me."

17. Who are the entrepreneurs who have inspired you the most?

"I really admire what WestJet has done (under CEO Clive Beddoe). They have established a corporate culture that's focused on satisfying the customer and having fun while they're doing it. That really runs through their whole company, from what I've seen. The fact that they have been able to do all that and do it consistently is really impressive to me. We try to do it, and we're not nearly as good at it as WestJet is, but we'd sure like to be."

18. Do you plan to continue to run Good Earth in the long term?

"We're definitely in this for the long haul. I brought on Bruce (Fox) as the chief operating officer and Bruce will be more involved in the operating side of the restaurant. I will be involved in the real estate, which is my background, along with the typical sort of president and CEO duties. That's what I'm reasonably good at and what I enjoy doing."

19. What are some of your other main goals in life?

"One is to have balance in my life. It's always important to achieve our life goals, but it is very important to maintain balance between personal pleasure and business. I go through phases where I'm a little bit more focused on the business, but I know I've got a holiday coming up, or that I'll be able to spend some more time with our daughter or my wife. It's knowing what's important and trying to find a way to achieve all of those things."

20. Who has been the biggest influence on your life and career?

"I would have to say it is my father, Gerry. Dad was a very well-known, well-respected auctioneer, cattleman and horseman in southern Alberta. As I travelled around with him as a young lad, I couldn't help but be impressed by the respect that he had from everyone who saw him and met him. That's always been important to me. I always thought that no matter what you do in life, people may disagree with you but hopefully they'll respect you for the decisions that you made. That's how I try to live my life."

IN PROFILE: MIKE GOING

* Title: President/owner, Good Earth Cafes Ltd.

* Born/Raised/Age: High River/47.

* Education: Grade 12.

* Family: Nan Eskenazi (wife), one daughter.

* Career: Prior to founding Good Earth in 1991, Going worked with the Okotoks-based family business, Going Real Estate. When it was sold, he worked in commercial real estate in the 1980s.

* Moonlighting: Going is a board member with the Cross Conservancy and also involved in the Central Rockies Wolf Project.

Mike Sturk, Business Edge
Mike Going enjoys a cup of coffee as the Good Earth Cafe president gears up for a major expansion of the company.

* Pastime: Breeding and racing thoroughbred horses.

THE COMPANY: GOOD EARTH CAFES LTD.

* Brass: Mike Going, president; Nan Eskenazi, vice-president, marketing; Bruce Fox, chief operating officer.

* Profile: Good Earth operates eight coffeehouses in Calgary specializing in wholesome foods.

* What's Brewing: The company is planning a major expansion by franchising its Good Earth Cafes.

* Head Office: 1212 9 Ave. S.E., Calgary.

* Phone/Fax: 403-294-9330/294-9329.

* Website: www.goodearthcafes.com

(Gyle Konotopetz can be reached at gyle@businessedge.ca)