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Corlett said that unfortunate lease renewal timing was the major reason for the closure. At the start of the COVID-19 pandemic, another cafe was located in the Downtown Market in Grand Rapids, but that location is now permanently closed. Madcap currently operates three cafes in Michigan two are in Grand Rapids and the third was recently opened in Detroit.
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“Last April when COVID was in full force, our online sales skyrocketed 200%.”Ĭorlett also mentioned that roasting coffee at home actually saves customers money, as the cost of a cup of coffee goes from $3-5 at a cafe to around 40 cents at home.
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“About 5% of our revenue pre-COVID was online, direct-to-consumer,” Corlett said. Madcap sells pre-packaged coffee through their website, and customers quickly turned to the internet to fulfill their coffee needs. “Two-thirds of our revenue was in wholesale distribution to other businesses, and almost overnight we lost about 80% of that business,” said Corlett.Įven though local eateries were closed, customers’ demand for Madcap’s coffee never faltered. As restaurants and coffee shops closed their doors to comply with health safety protocols, the wholesale demand for Madcap’s coffee dwindled. The bulk of Madcap’s revenue used to come from its wholesale deals, but that has shifted over the last year. “In actuality, our coffee is involved at every level of the coffee value stream.” “Folks in Grand Rapids, most of their experience with Madcap seems to be just with our cafes and they think we’re strictly a retail company,” Corlett said. They also act as a wholesaler and sell their product to restaurants, coffee shops and other retail locations.
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Instead of buying coffee from wholesalers or other suppliers, Madcap is directly involved with the importing of carefully-selected coffee from growers overseas. Traditionally, Madcap has operated much differently than a typical coffee shop business. The Seidman College of Business hosted a Focused Learning Lab on Wednesday, April 14 titled “How Madcap Coffee Has Thrived Despite the Pandemic.” The event featured Madcap Co-Founder and Co-CEO Trevor Corlett, who discussed the difficulties that his team has faced over the last year and how they have altered business strategies in new and unexpected ways to keep the Grand Rapids coffee shop afloat.