Michael Haft Speaks with Georgetown Students on Business Development
On October 24, the Georgetown Americas Institute welcomed Michael Haft, co-founder of Compass Coffee, to discuss business development, the role of Latin America in the coffee industry, and economic resilience during the COVID-19 pandemic.
Michael Haft and Harrison Suarez founded Compass Coffee in 2013 after serving together in the U.S. Marines. New to the coffee industry, they developed a basic business model and opened their first coffee shop in the Shaw neighborhood of Washington, DC, in 2014. From there, they worked to build their team and client base, which included Georgetown’s student-owned cafes run by The Corp.
Partnering with Latin America
Latin America produces 60% of the world’s coffee and has played an important role in Compass Coffee’s success.
Haft noted that Colombia was the first country from which they sourced coffee and that they continue to have a strong relationship with the Colombian Coffee Federation. Compass Coffee also sources its coffee from Guatemala, Honduras, El Salvador, and Costa Rica.
Haft commended the consistency of the coffee farmers’ product in the face of changing environmental conditions due to climate change and new plant diseases like la roya.
Innovating During the COVID-19 Pandemic
Haft pointed out that, like many other businesses, Compass Coffee was greatly impacted by the COVID-19 pandemic.
In the course of a week we went from having our best day ever to losing 85% of our business.
Haft and Suarez were faced with a decision—go out of business or innovate. Ultimately, they adapted by training their staff to work in a new facility they were already in the process of building. They also adapted to new market demands brought on by the pandemic. For example, they produced hand sanitizer, which they sold to the White House and other buyers, and Nespresso capsules so that customers could make Compass brand coffee in their homes.
What’s Next for Compass Coffee?
Haft believes the competitive advantage of Compass Coffee is its welcoming environment, unique blends, and ability to turn a generic product into something truly special. He hopes those traits will help Compass Coffee maintain quality as it grows and responds to the automation and changing consumer spending habits that are affecting the coffee industry as a whole. He concluded with advice for other aspiring entrepreneurs.
Find a problem to solve. What problems do you face, and can you find an interesting way to solve them?