 Hi, I'm Rusty Komori, and this is Beyond the Lines on Think Tech Hawaii. We broadcast live every Monday from the Pioneer Plaza in downtown Honolulu. This show is based on my book, which is about creating a superior culture of leadership excellence to achieve extraordinary results. Today's special guest is the coffee king, Ray Souter. He is the president of Kona Coffee Purveyors, and he is a fantastic example about this superior culture of excellence with meticulous details. You'll see why he is definitely the coffee king in Hawaii, probably in the entire United States and potentially the world. And today, we're going beyond coffee. Ray, so good to have you here. Good morning. I know you for so many years, and you're such a great guy, so successful. But I want to know about your history, where you were born at. Were you born here? I was born in Montana. Oh, wow. I grew up part of my life in Seattle. Okay. I moved to Hawaii when I was 14, and attended actually Kailua High School my sophomore year, and then ended up going back to Redmond, Washington to finish high school. And then did you play any sports during your high school experience? In Kailua, I ran track and cross country, and then at Redmond, I played basketball and ran track and cross country as well. Fantastic. And then what about college? What college did you attend? Well, Rusty, I went to Central Washington University for one year, mainly to play basketball, which when I got there, my expectations, it was a little tougher than I thought, and I was a bit bored. And I moved back to Seattle and got into the construction business. So from doing construction, how did you connect with your dad's construction company? Well growing up in a construction family, I had been taught from a very young age, so I developed a skill set by the time I was 18. So I was able to have my own business in Seattle for a short time, and then I ended up moving back to Honolulu and working with him in his business. Great. Now, I know you have a beautiful family. I know your wife, Jackie. I teach tennis to your son, Liam. Can you share more about your wife and son? Well, I was very married to my businesses for many years and ended up getting married to Jackie when I was later in life. And amazing lady. She played a very big role in our business now. And then we have a beautiful son, Liam, who loves learning tennis from you. But he's five now, and it's a good thing. And I love how we just showed the picture of Liam pouring coffee. How involved is he in your business right now? He's been roasting with us since he was three years old, but he claims that he likes the coffee business, but we'll see. Now, I want to know, Ray, you are the first guy. I never drank coffee before. You're the first guy that actually cultured me with coffee. I don't know if you know that, but I actually learned about coffee and started appreciating coffee because of you. How did you first get into coffee? Well, my first job in coffee was in Seattle. I worked for what was then a very small company, Starbucks. Oh, wow. It was interesting, though. I don't tell a lot of people that because the company they are now is very different from what I worked for. They were a coffee bean merchant. OK. Coffee, tea, and spice. And it really, the smell and the feeling of being in the store that I worked in really gave me a love for coffee. Great. Now, I want to know how you started Honolulu Coffee Company in 1991. Can you tell me about how it all began? Well, as I told you earlier, I was in, back in Honolulu, working for my father's construction company. But I had never lost that love of the smell and feeling of a great coffee. And at the time, there was not much good coffee in Honolulu. So we ended up getting an opportunity to put a kiosk at what was then Grovener Center, now Pacific Guardian Center. And it was a kiosk that we built. And we just started serving great coffee from one cup at a time. So while you were leading Honolulu Coffee Company, why did it grow so much into such a successful business? Well, you know, for me it was, I think if you look at the history of a lot of larger companies, they may have grown faster. But we really grew from landlords calling us. They saw what we did. We got an opportunity to go to Alamona Center, which was, we started with a kiosk. And then we had to store there as well. Then we ended up roasting there as well. So we really, it was just pretty much answering the calls that came in. We didn't really have a vision to grow that much. And then why did you sell Honolulu Coffee Company in 2008? Well, my father got sick, and I was in LA living with him. And I ended up breaking my foot in LA. And he was laying in one bed, and I was laying in the other. And these people that have been talking to me about buying my company for a couple of years, I ended up calling them at the time, because I had time to reflect there. And we ended up selling the retail business to them. All right, and then why did you start Kona Coffee Purveyors? Well, so I just mentioned that we sold the retail business. We kept the roasting business the whole time. And then we were roasting, and we really, we had a brand that was, it's hard to connect to people when you're online only. And then we had Liam, and it was like, hey, Dad, you better get back to work. And we had an opportunity to open Kona Coffee Purveyors at International Marketplace. It's been very exciting. Now, I absolutely love Kona Coffee Purveyors, and you guys are just really blowing it away. I mean, it's such a beautiful place. There's, I mean, people just absolutely love it there. Why is it so successful? Well, Rusty, for me, doing this for many years, it's been 27 years now, we're just very dedicated to doing an excellent job. From the minute you walk in the door to the way that we treat you, the build out, of course, and then finishing with a great product. But I think the biggest reason for our success at International Marketplace is the combination of great pastry and great coffee. Yeah, can you talk more about the pastry part? So we had an opportunity to meet my wife and I. We met Michelle and Belinda from Be Patisserie at a brunch they were doing with M&W here in town. And at the time, we just had signed our lease at International Marketplace. And we wanted to serve a great product with our coffee. And we ended up having an opportunity to actually almost partner with them so that when you come into our cafe, you're going to. And I tell people this a lot. Typically, when you go into a cafe, the pastry is OK. Typically, when you go into a great bakery, the coffee is OK. So what I wanted to do was develop something where you could get a great coffee and a great pastry. Even if you were there for one or the other, you would have the other one while you're there. And I think that that combination has really proving to be a great success. Well, I can attest to that because I look forward to going there as much as I can. And I know a ton of people love to go there. And it's really because of you and your standard of excellence. And I mean, it's amazing. Your employees, your team members, I mean, they're so happy to see the customers. I mean, you feel appreciated. You feel like you matter when you're there. And why is it? Why do your team members respond like that every single day? Well, I think that we teach that the customer is the most important thing to us. Of course, to me, the real something that I always want when I go to an establishment is to be served with someone who is actually excited to see me. Of course, with humility, which is I think. And the young people that are on our staff, we've really found a great team there. But there's just a series of steps that is important to us, beginning from you walk in the place and it feels clean, very important. Then the atmosphere, it feels good. Then you're looking in the pastry case. Then things are looking good. Then somebody's going to say good morning. And you haven't even gotten to the point where you're going to purchase a cup of coffee or a pastry. And then you finish with the product. So I teach my team that every one of these steps has to be in sync with each other so that the customer feels that great experience and they want to come back again. Makes sense. Now, I want to show a video to the viewers that really shows the essence of why you're the coffee king. So let's run the video. Coffee grows all around the Hawaiian Islands and this one specific area, this very special place called Konar, grows one of the best tasting coffees in the world. I first got into coffee in Hawaii in 1991 and I wanted to start a company that really specialized in the finest single estate Konar coffee you could find that would compete on any level with world-class coffee. Hence, the relationship with the farmer is so important to everything that we do here. Here in Konar, the soil is very organic. And by maximizing what the soil is giving us in different areas, the natural elements in the ground will create different flavors in the coffee. You get a beautifully created flavor that's very boutique. It's so special. It can't be recreated. Konar coffee purvers will not accept anything but the best of Konar. Ray is a very interesting person to work with. He is probably one of the pickiest customers I have. And he has taught me a lot about taking this coffee that we're developing here to the next level in roasting. Ray, I absolutely love that video. I mean, everyone that sees that, they're going to realize why you're the coffee king. And you've been getting national recognition in Food and Wine magazine. You've won the Gold Medal Award at the Golden Bean National Roasting Competition. How does all this national recognition and awards make you feel already? Well, for instance, Food and Wine shows the best coffee in every state. And this is something that we weren't aware of. And I think it goes back to what we were talking about, is that every step that we do is so important. Now, when you talk about the award that we won for the Golden Bean, North America, that really is a reflection on the work that you saw in the video that we go through to finding the great coffee beans, Jackie, my wife, who does an amazing job with our roasting, profiling, tasting, we actually taste every batch of coffee we roast before it leaves the roasting plant. And I love that. And we're going to show another video to really go behind the scenes for everyone to know how meticulous you guys are. So if we can run that video as well. Once the coffee arrives at the roasting plant, now it comes into a whole new arena as far as where our hands get involved. Now we're going to take this coffee and make it amazing. I run Kona Coffee Barriers with my wife, Jackie. And my son, Liam, comes to work with us every day. I'm really lucky to have Jackie in my business as my partner. This room that we're in right now is our cupping laboratory. And it is one of 16 in the United States certified by the Specialty Coffee Association of America. Cupping is a sensory process in which we use to evaluate the attributes of a green coffee and roasted coffee. And we're going to hone in on the best profile for this coffee. Then we're going to come out to the larger roaster and put that profile in and roast the coffee. When people think roasting coffee, it's like, I'm going to throw it in the roaster. And in 15 minutes, it's going to come out, it's going to be finished. But it's actually a lot more complex than that. We here at Kona Coffee Preveyors feel that roasting is an art. And it takes a specific roast to get the best flavors from the coffee. And this is where our expertise really comes into play. Our collection of roasters is really that they are able to manipulate the coffee effortlessly through these different stages and control so many different facets of it. But mainly, is that you have a lot of consistency within the roast. You don't have unevenness within your roast. And that's really important. Kona Coffee is a very special coffee. Our passion is to encourage people to drink medium roasts so that they can really taste the coffee characteristic. Technically, what a dark roast is is that you just take in the roast furthers that you're getting a deeper roast color to it. And what that does is, at some point, you're really obliterating all of the nuances that make coffee unique from region to region. Kona Coffee has special flavors that you don't want to burn. The last thing we want to do is roast through its inherent characteristics. The person who loves Kona Coffee is one that their coffee experience is always a special occasion for them. Because that flavor within the cup is so full. It's so rich. It's got essence of coffee blossom which are like jasmine. It's got caramel, chocolate notes. It's so well balanced. And it's got a very delicate acidity which just smooths the entire experience on the palate. It's really one of the finest coffees in the world. Ray's not just coffee roasting operation. He puts his heart and soul into it. To make it the best it can be. Everything that he does is all about the experience. It's all about creating authenticity. And he is obsessed with quality. I would say that we're just very passionate owners. And we're really working for our customers to make sure they get the best product we can produce. Ray, I think everyone now knows why you're the Coffee King. And it's amazing, your standard of excellence, your attention for details. I mean, meticulous details. It's amazing. We're going to take a quick break. And when we come back, I want to talk to you about leadership and success, OK? You're watching Beyond the Lines on Think Tech Hawaii with my special guest Ray Souter. We'll be back in 60 seconds. And aloha. My name is Calvin Griffin, the host of Hawaii Uniform. And every Friday at 11 o'clock here on Think Tech Hawaii, we bring you the latest on what's happening within the military community. And we also invite your response to things that's happening here. For those of you who haven't seen the program before, again, we invite your participation. We're here to give information, not disinformation. And we always enjoy response from the public. But join us here, Hawaii Uniform. Fridays, 11 a.m. here on Think Tech Hawaii. Aloha. Aloha. I am Howard Wigg. I am the proud host of Cold Green for Think Tech Hawaii. I appear every other Monday at 3. And I have really, really exciting guests on the exciting topic of energy efficiency. Hope to see you there. Welcome back to Beyond the Lines on Think Tech Hawaii. My special guest today is president of Kona Coffee Preveyors, Ray Souter. And I am convinced that he is the coffee king. And I have a feeling you'll agree with me too. And today we are going beyond coffee. Ray, you have my book Beyond the Lines. There it is. What are you liking about the book so far? Well, you know what blew my mind about it, Rusty, is it says so much to a entrepreneur like myself about leadership and excellence and exceeding expectations and so forth. And I was very pleasantly surprised that you wrote such a wonderful book. Well, thank you. Yeah, it's been very inspiring to read. Well, it's all about outdoing what you've done and those details and really building the great habits. And that's what you do. Well, to me, consistency is so important. And I always teach to my kids how important humility is. So often in coffee, I don't know if you've experienced this. It's easy when somebody learns how to make a great cup of coffee that they'll have an attitude with you when you're in a cafe. And then this is just so horrifying because we want to present that coffee with humility. And that's the entire experience. But what a wonderful read, my friend. Thank you, Ray. And I want to pick your brain right now. I mean, you're obviously very successful as the former owner of the Honolulu Coffee Company. And now with the amazing Kona Coffee purveyors, how do you define success? You know, that's a very interesting question. But I think we work very hard in every step from, as you saw in the video, from the farm, from the relationship with our farmer through the processing, through the roasting, through the execution in the cafe. But like I said earlier before, what we try and achieve in our cafe is to really simplify it and say, hey, what would you like to experience when you're in a cafe? And we try and touch on all of those points. But you know, excellence is really defined by, is the cafe busy? Yeah. And we are very fortunate that we have a very busy cafe and we feel that the people, the returning customers, are rewarding us for our excellence. I think it goes both ways. It's excellent. Now, I want to know, Ray, just looking back at your career up to now, why are you successful? You know, like I've said before, I think it's just a dedication to perfection in everything that we do. And if anybody who's worked for me and knows me, they know how I like things to be very perfect in every step. So, you know, again, people have a lot of options in coffee. Maybe they're coming for the way they were treated by the employee. Maybe they're coming for the coffee. But to me, every step has to hit in unison for the people to really come back and patronize our place. I like hearing that. And every successful person, they've had obstacles along the way. What would you say was your greatest obstacle in achieving your success? And how did you overcome that? Well, I think after 27 years, we've had a lot of obstacles. We've had a lot of hurdles that we've had to overcome. I think one experience I had having a cafe downtown many years ago, and we had started to go down the road of serving a full lunch and really getting into the food business, then we made a decision, hey, are we a coffee company or are we a restaurant? And so at that point, we bought a roaster and we started roasting our own coffee. And we moved more away from food and just promoting what we really know, and that's coffee. All right, now I have another question for you. What do you hope to aspire to achieve in your future still? Well, what's happening in our cafe right now is people are enjoying the coffee, and they're starting to buy more and more coffee to take home. So what Jackie and I are working on right now is building our online business to make it very easy for people to enjoy Kona Coffee all over the world. And it's very important that people have that experience in the cafe and that they know they can continue to have it at home. And then to make it easier for them to make that purchase is they always have this beautiful feeling of their time in Hawaii and the coffee that they had. And that's really what we're going to be working on over the next couple of years is building that business. Great. Having your standard of excellence and really striving for perfection, that's amazing. That's what every business or every sports team should be striving for. And oftentimes, you can't achieve it. But when you chase perfection, you'll catch excellence. I like to say that a lot. Now, knowing all of that and your high standards, how do you keep bettering yourself? Well, I think I'm constantly challenged every day by, I think the biggest, the hardest thing in our business right now is dealing with the employees, trying to instill passion into young people about how hard work is not a bad thing. I think getting them excited about the coffee business is something that's easier to do. But I think that's the biggest thing that we work I mean, we work tirelessly on building a team to represent our company to the public. No, and I love your team. You have a great, high quality team. And I think all of the employees there, all of your team members, they should be very fortunate and proud to really be a part of your team. You've obviously learned some valuable lessons through your career so far. What advice would you give to other business owners currently or future business owners? Well, for me, it's to specialize. So you come into my cafe and we do coffee and pastries. We don't try and sell a lot of different things. And I think that when you really specialize, people can feel that when they're in your establishment and they know they're at the best place. Then they taste it and that they know they're at the best place. So I think for me, specializing is the key to success. I know two people from France that absolutely love Kona Coffee Purveyors. And they had told me that Kona Coffee Purveyors, your place is like being in France. And they said it often is better than being in France because you can experience that in Hawaii. How is that as a compliment to here? No, that's amazing. But I can't give enough credit to our partner's B. Patisserie who is Michel Suos. He's the founder of the San Francisco Baking Institute and his partner, Belinda Leong. She's the pastry chef. But he's from France. And I think that his influence into the pastry selection and the way they're made and so forth is people from France come in and they get very excited. Now I have to ask you something kind of interesting here. What do you think was a mistake that you've made in the past business-wise that really helped propel you to where you are now? I think I've made a lot of mistakes. I think when I was younger I would get distracted by things that were not focused towards coffee. And I think that was the biggest thing that I had to learn. I also got into some tough rent situations which I had to learn that in my industry if you don't keep rent to a certain number you're probably not going to be there in a couple of years which I think you can see around the country when people may think it's a cool idea to put in a coffee company or a cafe and they don't understand that rent can really put you out of business in all of the expenses but I think that's the biggest thing that... But you know there's been a lot of obstacles. Being doing business in Hawaii you have to work very hard. Yeah, who's been an influencer on you or a mentor for you through these years? Well I think my father of course who's a great businessman taught me a lot of things. Certainly growing up and being a perfectionist but certainly the people that I'm working with now even my wife is very inspirational to me because she's taught me so much about she's so good at things that I'm not good at. And then partnering with Be Patisserie has been such a great experience as well. I'm amazed that I know you for so many years before you met Jackie. And you and Jackie are like the perfect super couple for taking over the coffee industry in the world. I mean with your guys standards and the details it's amazing to see. Well I think we have very complimentary skills. I mean she's a food science major and her whole life before I met her had been sensory. So had I known that when I met her I would have married her a long time ago but certainly I'm more on the business side now and operations and she's really running our sensory division and every, like I said earlier, every coffee that we roast is tasted by her before it leaves the roasting plant. So it's a great experience working with her. Of course working with your wife has many challenges but maybe she has a lot more than I do. It's working so. Well Ray it's a winning situation that you're in and you guys are creating a situation for others to really follow and emulate. So I really wanna thank you for sharing your insights on Beyond the Lines today Ray. Thank you. Thank you Rusty. And thank you for watching Beyond the Lines on Think Tech Hawaii. For more information visit my website RustyKamori.com and my book can be purchased on Amazon, Barnes & Noble and all Costco stores in Hawaii. I hope that this TV show and my book will inspire you to create your own superior culture of excellence and to find your greatness and help others find theirs. Aloha.