We're pulling back the curtain on scaling a VC-Backed Startup as part of our mission to revolutionize the coffee industry to better serve small businesses, baristas, and their communities.
Over the past few weeks, we’ve been intentional about refining our messaging and truly stepping into our identity as a product. Over the last two years, we’ve grown into our vision, and in the last six months, the data has solidified what we’ve known all along—Joe is consistently growing coffee shops in ways that traditional point-of-sale (POS) systems simply aren’t.
Strategically, this means it's time to ramp up market development (phase 2)- but first we have to get crystal clear on how we articulate our value proposition so busy owners "get it" in the first 10 seconds.
One of the biggest challenges we’ve faced is the paradigm shift we’re introducing. Coffee shop owners have historically viewed POS systems as an afterthought—just a necessary tool to accept card payments. Companies like Square and Toast build software add-ons for these POS systems, creating an additional financial burden for coffee shops, often without generating a meaningful return.
But when you look at Starbucks, you see a completely different approach. More than half of all Starbucks orders are placed through their app. In fact, more people use the Starbucks app for payments than Apple Pay. The result? A system where almost all revenue growth outside of opening new locations is driven by technology. Starbucks understands that its POS is the backbone of its growth—not just a tool, but the engine of its customer experience.
Most independent coffee shops, however, don’t have the scale or infrastructure to build technology like Starbucks. That’s where Joe.Coffee comes in. We’re creating a system that allows independent coffee shops to leverage the same advantages Starbucks has—seamless mobile ordering, loyalty rewards that actually drive repeat business, and a network effect that makes independent coffee shops more convenient than chains.
The reality is that the average American drinks three cups of coffee a day, typically during three key time slots: morning commute, late morning, and early afternoon. Independent coffee shops can only serve about 30% of this demand because they lack the infrastructure to offer convenient, reliable ordering experiences. That’s why many customers default to Starbucks—it’s not necessarily about preference; it’s about convenience.
By uniting independent coffee shops on a single platform, we can collectively create a footprint that surpasses Starbucks in convenience and customer experience. No single coffee shop can do this alone—not even regional chains with hundreds of locations—but together, we can build a network that makes ordering from an independent shop just as seamless and reliable as a major chain.
With this refined focus, we’re ramping up our sales efforts, particularly in Seattle and other core markets. Our goal? To get at least 20% of independent coffee shops in each market on Joe. If we achieve that nationwide, independent coffee shops will collectively have a more convenient footprint than Starbucks.
But it’s not just about convenience—it’s also about operational efficiency. We’re automating workflows to reduce the time baristas spend on administrative tasks, allowing them to focus on what they do best: crafting great coffee and providing exceptional service. Our order management tools, upcoming kiosks, and innovative features are designed to streamline operations and improve financial security for baristas.
Beyond that, we’re expanding our impact by leveraging collective buying power to lower costs for coffee shops. We’ve already achieved this with payment processing—70% of our profit comes from transactions where customers use Joe at different locations, allowing us to keep costs low for shop owners. Our long-term vision includes reducing processing costs to zero and negotiating better supplier deals to lower the cost of goods.
None of this would be possible without our team. A few years ago, we made a bold decision to transition from a mobile-ordering-only platform to a full coffee shop operating system. It wasn’t easy—major investors advised against it, and we faced countless challenges along the way. But our team believed in the vision, and today, we’re seeing the payoff in real, measurable growth.
I want to take a moment to acknowledge a few key people who have been instrumental in this journey:
Brendan and I have learned that building a startup isn’t just about strategy and execution—it’s about people who care deeply and take pride in their work. The inflection point we’re experiencing now is a testament to our team’s belief, effort, and perseverance.
We’re at an exciting moment. The data is aligning with our vision, coffee shops are seeing growth, and we’re gaining momentum. Our mission is clear: to empower independent coffee shops with the same technological and economic advantages that Starbucks enjoys—while keeping money in local communities, strengthening neighborhood businesses, and fostering authentic connections.
Thank you to our team, our partners, and our supporters for being part of this journey. We’re just getting started, and the best is yet to come. Stay tuned! 🚀
Our new "Building in Public" series pulls back the curtain on evolving a venture backed startup in service of community, reciprocity, and shared...
Our new "Building in Public" series pulls back the curtain on evolving a venture backed startup in service of community, reciprocity, and shared...
How joe's coffee-specific technology help owners keep up.