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Larry’s Beans: A Small Business Going Green

How energy efficiency helps one small business survive the recession.


By Yoko S. Crume and Richard V. Crume
Published: November/December 2009 issue

Larry's Beans coffee roaster
In quest of Larry’s Beans, a coffee roaster in Raleigh, N.C., we drove winding roads and oak-shaded boulevards through one of the city’s oldest residential neighborhoods. The route took us onto the last remaining gravel road within city limits and into an industrial area, right in the middle of town. Old structures and equipment, worn and rusty with age, made the district look more like an abandoned construction site than the backyard of one of the city’s more comfortable neighborhoods.

Off to the side of the road, we saw signs of life. First, an old bus painted bright colors, then a biodiesel pump, flowers, resident cats and a metal sculpture gateway opening into a courtyard between two renovated warehouses.

The Larry’s Beans facility is an eclectic mix of reclaimed building materials, new and hand-me-down furnishings and modernistic architectural elements. No beige walls and drab carpeting in this corporate environment. Instead, we found a menagerie of colors, textures and shapes reminiscent of an art studio or creative workshop. And natural lighting is everywhere.

The coffee roasting area — the heart of the operation — is tidy and meticulously organized, and the equipment is sparkling clean. Nearby, resembling a college research lab, is a glassed-in tasting room where coffee blends are sampled early each morning by a certified cupper to ensure consistency of flavor and aroma. The smell of freshly ground and brewed gourmet coffee is irresistible.

Owners Larry Larson and Kevin Bobal have clear priorities: To spend money on what really matters — the quality of the coffee — while maintaining a good work environment for 16 employees. They are also committed to energy conservation and sustainability, believing that a green approach to business is not just the right thing to do, but also the smart thing to do for today’s successful small business operation.

In one of the most severe economic downturns in memory, small businesses are struggling to stay afloat. For these businesses — almost 97 percent of all companies nationwide — finding ways to cut expenses by reducing energy consumption is more important than ever. For many, it can mean the difference between survival and bankruptcy. Larson and Bobal have found a way to incorporate energy-saving technologies into their two converted warehouses without breaking the bank.

Running a successful coffee company is not a simple task, even during good economic times. The competition is tough, and many consumers on tight budgets can scale back their coffee habits. Larson and Bobal report that demand for their fair-trade, shade-grown organic coffee beans has remained high, even during the recession: More than 500 coffee shops and grocery stores carry their products, and the company’s growth curve shows no signs of leveling off.

“We want to innovate and to inspire people to make a difference in the world,” Larson said. “We want to use the company as a soapbox for fair trade and other issues we care about, and making coffee is the perfect vehicle.”


What accounts for their popularity? Of course, marketing a high-quality product is essential. Customers also respond to the company’s commitment to sustainability, the environment and community engagement. For example, the company, in collaboration with Maverick Enterprises (maverickent.net), developed biodegradable coffee bags. It also maintains a biodiesel filling station, which sells Piedmont Biofuels products (biofuels.coop) for community use, and its local delivery bus runs on vegetable oil collected from neighborhood restaurants. (Clients know when the bus has arrived because the exhaust smells like Chinese food.) And walk-in customers cannot help but be impressed by the company’s simple but effective steps to conserve energy.


Going Green is Good for Business


During the recession, small businesses across America have become more reluctant to invest in green technologies, even though companies like Larry’s Beans have demonstrated that green is good for business. According to a February survey conducted by Wells Fargo/Gallup, one in three small businesses say the economy has affected their plans to become greener. Compared with two years ago, fewer businesses believe their customers are willing to pay for environmentally friendly goods and services. Even so, many small businesses continue taking steps toward sustainability. Of those surveyed, 88 percent report participating in recycling programs, and 77 percent say they’re switching to more environmentally friendly products.

At Larry’s Beans, going green was a priority from the beginning. When starting his business in 1994, Larson had a wealth of ideas but little cash. Bobal joined the firm later. As their personal interests in environmentalism and sustainability grew, the two entrepreneurs set out to show that a business model combining superior coffee with social awareness and energy-conservation could be profitable as well as good for the planet. Over time, Larson and Bobal say they’ve cut their energy costs by at least half.

There is no rocket science at Larry’s Beans. Most of their energy-conservation ideas have been employed elsewhere many times over. However, what is unusual is their conviction that energy conservation and sustainability are not only good for our country, but also good for business. The company’s energy and sustainability strategy includes —

Solar water heating: Three evacuated-tube solar hot water collectors by Apricus Solar (apricus.com) provide radiant floor heating for 450 square feet (42 square meters) of office space. Radiant tubes, encased 16 inches (40 centimeters) apart in concrete floors, draw hot water from a 120-gallon (454-liter) heat-exchanger tank. The collectors were installed by Southern Energy Management (southern-energy.com).

Rainwater collection: Five rainwater collection cisterns provided by Rain Water Solutions (rainwatersolutions.com) hold up to 2,400 gallons (9,085 liters) for use in the company’s dual-flush toilets. (The city of Raleigh recently approved the use of rainwater for toilets; other cities may have restrictions.)

Skylights: Four hundred square feet (37 square meters) of south-facing skylights made of lightweight polycarbonate sheets provide 100 percent of the coffee-production facility’s daytime lighting needs, along with some solar heating during the winter months. Manufactured by Polygal Plastics Industries (polygal.com), the sheets are nontoxic and recyclable. Overheating in the summer is avoided by a 4-foot (1.2-meter) overhang that shades the skylights from direct sunlight. The installation cost was about $25,000.

Warehouse wall insulation: The warehouse walls and ceiling are insulated with Sealection 500, a nontoxic spray foam by Demilec (demilecusa.com). The product virtually eliminates air infiltration and is made without formaldehyde and chlorinated fluorocarbon agents, which are harmful to the environment. The insulation was applied by Allied Spray Foam (sprayfoams.info) for about $13,000 per building.

Roofing material: In place of more common galvanized roofing, Larry’s Beans installed Galvalume panels (galvalume.com) made of 55 percent aluminum-zinc alloy-coated sheet steel. The thermal reflectivity of the roof’s silvery-white surface helps reduce cooling costs in the summer and heating costs in the winter. The manufacturer claims cooling costs are halved compared with galvanized roofing and about one-third less than terra-cotta roofing. Galvalume panels were also used for the warehouse siding. Total installation cost for the two warehouse buildings was around $75,000.

Other energy-efficiency technologies include low-energy fluorescent lighting (mainly T5 bulbs) with reflective fixtures and ceiling-mounted radiant heaters designed to warm only the workspace immediately below. As workers move from one workspace to another, the radiant heaters can be switched on and off.

To cut down on air-conditioning costs, two insulated garage doors (about $40,000) serve as movable walls in the office area, allowing fresh air to circulate when the doors are opened on cool summer mornings. One door measures 13 feet (4 meters) wide, and the other is 6 feet (1.8 meters) wide. On hot days, Larson and Bobal move to alternate work stations in a cooler part of the building, thereby avoiding the need to install air conditioning in the executive suite. Casual attire (shorts and t-shirts) also helps workers stay cool and comfortable when the weather heats up.


Saving Money With Renovations


When renovating their two 4,000-square-foot (370-square-meter) warehouses, both built in 1939, the company used reclaimed materials, such as old roofing and wood flooring. They even installed an antique barn door for the entrance to the executive offices. Rather than trying to impress visitors with luxurious furniture and pricey artwork, Larson and Bobal believe they make a stronger statement with their desks from the local Habitat for Humanity resale shop and metal roofing from a dilapidated storage shed down the street. This kind of frugal recycling makes sense in today’s sour economy, while adding warmth and character to the work environment.

The solar water-heating and rainwater systems were purchased new, but the company was careful to buy only what it really needed. For example, the radiant floor heating was installed just in the office space and not in the warehouse and production rooms, where workers spend less time. On the other hand, the skylights span the entire production area in one of the warehouses because this was the most cost-effective way to illuminate the whole building.

Finding contractors to help with the warehouse renovations was not simple — too many builders wanted to install expensive technologies, and too few knew where to find reclaimed materials and how to use them effectively. Larson and Bobal’s advice: Don’t give up.

“Don’t let people tell you that you can’t do something,” says Larson. “If a contractor says it is going to cost a million dollars, you’re talking with the wrong guy. Just get started, and you’ll find that the more you do, the more you will want to do.”

What does the future hold for Larry’s Beans? Steady growth in sales means the company can continue promoting social causes like fair trade while experimenting with sustainable approaches to business. Already in the works are wind-powered roof vents, skylights for the second warehouse, a small vermiculture plot (worm castings will be sold to local farmers and weekend gardeners), an energy-recovery system for the bean roaster and monthly sustainability tours for visitors. Asked about the future, Larson says, “Twenty years from now, if we have played a small part in encouraging people to really care about sustainability and social issues, we will have achieved success!”

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About the authors: Dr. Yoko Crume is a social work professor specializing in aging and long-term care. Richard Crume works as an environmental engineer and teaches a college course on air pollution and climate change. The Crumes have no connection with Larry’s Beans or its suppliers or retailers. Contact the Crumes at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .
 

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