The Berkmans use organic ingredients in the coffees, teas, pastries, and sandwiches they serve at their small chain of cafes.

 
For Shallom and Jilla Berkman, it takes an African village to make a good cup of coffee. The Berkmans own Urth Caffé, a coffee company with three retail locations in Southern California. But their company's reach extends far beyond the state. Urth Caffé's coffee is the product of its Mountain Gorilla Coffee program, which trains 10 family farmers in Kisoro, Uganda, in organic and sustainable growing techniques and provides them with tools and other equipment. The program increases the income of the African farmers and helps protect the habitat of the endangered mountain gorilla. "Our main goal is to give back to the communities we are profiting from," says Shallom.

The coffee, which is shade-grown at 9,000 feet above sea level, is some of the sweetest and least acidic in the world, according to Shallom. "Farmers in that area were decimating the habitat, burning down trees to grow other crops," he says. "We taught them how to grow organically, and now they grow coffee that they had never before exported."

The idea to pursue Ugandan coffee came from Urth Caffé customers, and this wasn't the only customer idea that became a business practice. "Every improvement we've made-such as adding cappuccinos, bagels, and muffins to the menu-was pulled from customer feedback," Shallom says.

Urth Caffé's customers are also the company's investors. "Our investor base is made up entirely of customers who know our philosophy and support it over the long term-not investors who want a quick return," he says. After the Berkmans opened their first cafe in West Hollywood in 1994, they turned to their customer-investors when it was time to open a second location in Beverly Hills in 2003.

However, the Berkmans and their investors were put to the test when they tried opening a third location in Santa Monica. It took more than five years after the city government reneged on initial design approval. The Berkmans had to raise money from their investors twice to keep the business afloat until the city eventually allowed the 1,700-square-foot store to open in 2005. "We almost went out of business. We were on the edge of bankruptcy," says Shallom. The Santa Monica Chamber of Commerce helped Urth Caffé, lobbying city council members and circulating a petition among chamber members.

The Berkmans were able to pay off their debts within a year of the Santa Monica store opening, and companywide revenues exceeded $5 million in 2006. "We like to put our values into the business context, and I hope that's the wave of the future because it's very satisfying," Shallom says.

To share a Success InSight of your own, e-mail Greg Galdabini at ggaldabi@uschamber.com, phone 202-463-5563, or fax to 202-463-5707.