How A New Coffee Shop Can Reinvigorate A Small Town Economy – CoffeeTalk

Avonmore, a small town in Southwestern Pennsylvania, has been pursuing an economic renaissance since the closure of its rolling mill in 2019. However, the town has a coffee shop among its few businesses, which has been replicated in other small, economically challenged towns across Southwestern Pennsylvania with broad success. Economic development experts agree that coffee shops tend to be an easy way to fill storefronts in diminished business districts. Residents ask for coffee shops more than any other type of business, even grocery stores, during community engagement sessions.

The reality of a coffee shop is closer than grocery stores, as it has low start-up costs, minimal labor needs, and can fit into just about any space. Leasing space, buying second-hand equipment, and hooking up with a local roaster can further tamp down expenses. Coffee shops have “knock-on effects,” as a 2024 Columbia University study found that areas where a new Starbucks opened saw up to an 18% increase in the number of business start-ups over the next seven years.

1833 Coffee and Tea in Freeport may be the perfect case study of how coffee shops can punch above their weight. Karen Heilman, co-owner of 1833, recalled how doubters’ predictions didn’t come to pass after opening in 2021. Since 1833 Coffee and Tea arrived, so have a bakery, a yoga studio, and a card shop. The owners of each said the coffee shop helps drive traffic to their businesses, either by bringing customers to town or just being a place where word of mouth can spread.

Coffee shops also provide a place to gather, run into friends, or get some work done outside of the house. They excel at the “third space,” a buzzy term in sociological circles referring to a meeting ground besides work or home. Coffee shops are also a great way to demonstrate a town’s vibrancy and dynamism to young people who may be thinking about leaving, in a way that most other third spaces, like libraries, churches, and fire halls, often cannot.

Harvest Moon Coffee and Chocolates, a local coffee house with locations in Tarentum and Harrison, faced financial difficulties after launching a GoFundMe campaign to pay off debt. The goal was $100,000. Despite the challenges, both Harvest Moon locations remain open, maintaining a friendly atmosphere. Glass City Cafe in Jeannette closed its doors in January after nearly two years of business. Cardinal Coffee Roasters also entered town around the same time, but traffic has plateaued.

Starbucks, with its 17,000+ stores across the U.S., has been targeting small towns for a few years now, with plans to open in New Kensington, Allegheny Township, Buffalo Township, East Huntingdon, and Salem Township. Greensburg, sandwiched between multiple Starbucks locations, supports about five local cafes, including Dv8 Espresso Bar and Gallery. To stay relevant during Dv8’s 23-year run, former owner Kim Elliott-Rentler provided a “shot in the arm” when Zack Dreskler took over in 2022. He brought in new pastry vendors, sponsored more local events, and tried to “refresh things a little.”

In good news, the novelty of a new cafe may wane for locals over time, but it never quite wears off, as Dreskler’s experience shows. Customers still ask when they opened, and the atmosphere at Steep Mountain Tea Co. is more than just a coffee shop; it’s a slice of paradise for customers to gather and connect with others.

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