255: Operationalizing Kindness and Absolute Excellence while Building Birch Coffee with Paul Schlader
Jan 2, 2024
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Birch Coffee co-founder Paul Schlader discusses operationalizing kindness and absolute excellence, standing out in NYC by hiring for kindness, navigating the challenges of growth, and the resilience of their business amidst the pandemic.
Building a business takes time and cannot be rushed, emphasizing the importance of patience and allowing oneself to learn and grow.
Kindness is a core value of Birch Coffee, with a focus on hiring team members who genuinely embody kindness in their interactions with customers, contributing to a friendly and positive atmosphere in their stores.
Deep dives
Learning through experiences and giving yourself grace
Building a business takes time and cannot be rushed. It involves managing people through unfamiliar circumstances, which can only be learned by going through them. Giving yourself grace and going through these experiences is the greatest teacher. Emphasizing that it's important to be patient and allow yourself to learn and grow.
The mission statement and values of Birch Coffee
Birch Coffee has a mission to serve their customers every need, every time, knowing every moment counts. The founders wanted to maintain integrity and honesty in their work, rooted in their personal principles, including kindness, as time is the most precious resource. They aim to excel in their coffee quality and customer service, always striving to create a seamless and efficient experience for their customers.
Fostering kindness and selecting team members
Birch Coffee values kindness as their top soft skill when selecting team members. They focus on screening potential employees for kindness and ensure that their team members are genuinely kind in their interactions with customers. Building a team that embodies kindness is central to Birch Coffee's ethos and contributes to creating a friendly and positive atmosphere in their stores.
Surviving the challenges of the pandemic
Birch Coffee faced the challenge of the pandemic by adapting their business model. They shifted to online sales, shipping coffee orders, supported frontline workers by serving them coffee, and even allowed customers to buy coffee for the frontline workers. Although they had to furlough their staff and face store closures, Birch Coffee was able to survive by finding new revenue streams and channeling their resources efficiently. They also mention the importance of keeping themselves grounded and finding joy and peace amid the tough times.
“It wasn’t about being better than others, it was being ourselves, and true to our ideals in our work.” That’s just one of many gems from today’s guest, Birch Coffee co-founder Paul Schlader, who says, “I don’t accept anything less than absolute excellence.”
In this conversation we talk about how he stands out in the New York City noise by hiring for kindness; getting bought out when the Gershwin Hotel closed and thereby ending the lease on their first location, then parlaying those funds into two new stores (and the growing pains that followed); and the moment he had to tell his entire team they were furloughed indefinitely when New York City delivered the shut-down order; losing four stores but bouncing back to 14 (when so many other coffee shops closed down).
More About Paul: Paul Schlader co-founded Birch Coffee, a New York City-based coffee company, in 2009. Since then, the company has grown to fourteen locations and is doing 10x the revenue by the end of year three. Paul and his business partner Jeremy have been focused on bettering the industry through their work in coffee and service over the past fifteen years.
Paul's work directly focuses on quality of product. As a licensed Q grader, he manages all of Birch's green coffee purchases, and oversees their roasting, wholesale program, and espresso training. Though the coffee side is important, leadership is where Paul spends most of his time, building teams and working to teach their leaders to follow the mission, "Serve our customers every need, every time, knowing every moment counts.”
🌟 3 Key Takeaways
A sample interview question to screen for kindness: What do you like most about working in the coffee industry, and what has drawn you to this industry? Individual has to talk about something positive. Through their tone, what they are sharing, we make an assessment about whether they are being truthful, honest, and open—or whether they are blowing smoke.
From one store to two was far more challenging than two stores to four: Building trust, and making sure all systems are written out and tracked, everything memorialized. “One of our core values is ownership, up and down the chain of command. We all do the dishes, we all do what is called upon us at any time in the business.”
Learn along the way: “Not knowing is the best part of the adventure of entrepreneurship, and the greatest teacher. There’s no button you can press to accelerate your ability to be better. You can’t do it until you go through it.
📝 Permission
Drop being hard on yourself—give yourself grace as you learn and grow, and make mistakes.
✅ Do (or Delegate) This Next
Operationalize one of your business values by crafting an interview question or manager manual entry that describes how you show up as {quality}.