Sapphire Cafe and Lounge owner Dino Busato believes Guelph's downtown coffee scene has reached its saturation point.
“There are a lot of great restaurants, cafes and nightclubs in a very small radius in the downtown area and it is very difficult to compete with them,” Busato says. “It seems that there just isn’t enough demand (people) for the supply.”
A Guelph native and certified barista, Busato got his start in the restaurant and entertainment industry at 16, working and learning the ropes at a handful of local establishments and a couple of stints overseas, before opening Sapphire in 2013.
He recently announced he is selling his business due to poor earnings.
A quick Google Maps search on “Downtown Guelph Cafes” produces no less than 18 results within its core. Depending on your definition of “coffee shop,” there is no shortage of places to choose from to get your caffeine fix.
The variable offerings ensure there is a place for everyone - families, office workers, a night crowd, the health-conscious and the business oriented. Free Wi-Fi and a small, but eccentric, menu is pretty much standard (whether your coffee preference is drip or espresso-based is another location decision).
There’s the long-standing Red Brick Cafe on Douglas, quintessential for one-on-one coffee talk but also a licensed night hub with live music; lower Wyndham’s Planet Bean is known for its notoriously strong cup roasted right here in town at their flagship store’s roastery, and the newly cropped-up Filtr on Wyndham runs their own hybridized version of “cafe,” serving up fresh juices and single-serve brew.
There’s no doubt the coffee shop serves as more than a community hub to the hundreds of different customers that frequent them, but with so many options, the questions arises: How many can Guelph’s core sustain?
Busato thinks it's at the tipping point.
“The scene is tough but, often, a lot of businesses downtown try to help and support each other. I’ve always tried to support and remain friends with everyone downtown but that mentality has changed somewhat. Everyone is grasping at the same piece of pie and harsher competitive thinking is definitely at play.”
Busato says that until the population of Guelph grows tremendously, the market downtown is saturated “unless you have a million dollars to sit on.”
“Obviously, above-average coffee doesn’t make the difference,” Busato says.
Kevin Polach has co-owned Capistrano Cafe with his wife for the last four years, making it the third transition of ownership since the cafe opened in 1994. He says since he’s taken the helm, there’s been dramatic change to the downtown and how clientele get around.
Capistrano, located in the heart of St. George’s Square, once enjoyed a steady stream of customers when the buses were situated there. Shortly after he took over, the buses were diverted to their new home at the Carden Street transit centre.
“For many, it would have been decimating. We lost 30 per cent of our traffic, which is significant,” Polach says. “We did a wholesale review of everything that Capistrano was and what we needed to become. We re-focused; changed what we we offered and renovated to change the look and feel to be relevant and attract new customers.”
Polach says that in order for things to get better, the City needs to make an intentional effort to bring density to the downtown and cites the lack of diversity in its shop-fronts, particularly on the retail side as they continue to shutter and leave gaps in a once-vibrant core.
“With this type of business [coffee shop], foot traffic is critical. There needs to be a reason for people to come downtown,” he says.
Lack of parking is a frequent grievance from residents and business owners.
“It’s a common gripe to hear and we’ve almost become immune to it. For those who work down here though, there’s ramification and a direct impact on the viability of the area,” Polach adds.
Although all downtown businesses and property owners pay a levy to the Guelph Downtown Business Association (GDBA), its executive director Marty Williams says they play no role in determining the success of any business, or in deciding what types to fill it with – or how many of one type is too much.
“This is the place where independent people can get their start,” says Williams. “Coffee shops are just one part of a landscape down here. There seems to be more coffee culture and it certainly attracts people and gives them a reason to go for a walk, have lunch and do things and they’re really nice to have.”
Williams continues, “Downtown Guelph has no formula like, for instance, the mall, that says how many coffee shops are needed; there are no levers. That’s what the market is there for to test out.”
Busato says that although the GDBA tries hard, the money paid to the association by area businesses could be put to better use if it reaped a more direct benefit to them.
Since he opened shop, Busato says five to 10 new businesses with similar models (food and drink providers) have opened up downtown. And although the downtown community has been very generous, he says the openings have not drawn more people but divided the demand even more.
Whether all of Guelph’s thorny transitions and growth will sustain its downtown business core remains to be seen but the changes, including the new condo developments which signal hundreds of people living and playing in the area, are more than welcome by independent business.
Arthur Harkins, cafe manager of the Red Brick Cafe, says there was talk of over-saturation in the downtown coffee scene about a year ago when Balzac's was opening but, so far, he is optimistic that the core can sustain it.
“Guelph is growing, and with the introduction of several new condos downtown, it is bound to be a great boom for everyone,” Harkins says. “We feel that the more business in the downtown core, the better it is for everyone ultimately, since we learn from each other and we are supported by each other's presence. I'd say our relationship with other cafes feels like camaraderie.”
Polach thinks the large amount of coffee shops appeal to a different segment and he’s positive that adapting to change is key.
“There’s always an ebb and flow with who your customers are - always new people coming in,” Polach says. “I feel very optimistic about the potential of not just Capistrano, but downtown Guelph as a whole. If downtown is a healthy place, Capistrano is a healthy place.”
Williams adds that even though it feels like there are a great deal to choose from, it’s typically hard to find an empty seat on a Saturday.
“Time will tell if everyone can make a living. My hope is that with new people coming to live in town, that more people will be attracted to downtown and all places will be full.”
