No workplace break room is ever complete without the quintessential pot of coffee. In the Coastal Bend, the Munson family of Bay Coffee Service has kept break rooms and local businesses well-stocked with quality coffee and beverage supplies since 1971.
Bay Coffee Service was founded 46 years ago by Carl Munson, the father of current owner and President Paul Munson. Back then, coffee service was a new concept.
“Before, people would leave the workplace and go to coffee shops or restaurants during their coffee breaks,” Paul Munson said. “So when the idea of actually placing coffee in the break rooms took off, that’s how the industry got started.”
Growing up in the business, Munson describes how the 1970s was the “heyday” for the Texas oil and gas industry and an opportunity for expansion.
“My father had the novel idea of delivering coffee and beverage supplies to local businesses for their coffee breaks to keep employees from having to leave the office,” he said. “From there, his business grew quickly until the oil crisis in the 1980s, when it slowed down significantly.”
Munson later moved to Austin to attend the University of Texas. His brother, Chris, was already there and had graduated college into a tight job market. While Paul was in school, Chris started his own coffee service business. Paul spent seven years working for his brother in the business.
“I found I enjoyed interacting and meeting people from various places of business,” Paul Munson said. “We established a great network and got referrals to build upon.”
The Munson boys provided coffee makers and brewing equipment, maintaining them free of charge. In return, customers purchased their coffee products and accessories from the Munsons.
In 1987, Munson returned home to Corpus Christi to apply the skills he gained in Austin to his father’s business. Over the past 30 years, he has witnessed major changes in the coffee service industry, particularly with the increase of online competition and the popularity of the K-Cup.
“If you told me back then that people would be willing to pay the same price for a single cup of coffee as they would for an entire coffee pot, I would have laughed,” said Munson with a smile. “I thought it would be a fad, but it looks like the K-Cup is here to stay and is now a big chunk of our business.”
Competition from big-box stores such as Sam’s Club and Office Club as well as online retail establishments have also impacted the coffee service industry. Yet, Bay Coffee Service continues to thrive.
“Our strategy is that we provide face-to-face, interactive local service while maintaining the urns and machines free of charge,” Munson said. “Most people don’t realize how expensive commercial coffee machines are, especially those that hook up to the water line.”
Those $700-plus pots also break down from time to time.
“At least our company has a faster response time when our client needs a repair or replacement,” Munson continued. “Also, we try to keep the same route person with the same clients to develop that relationship.”
Along with deliveries in Corpus Christi, Bay Coffee services businesses in Kingsville, Alice, Rockport, Port Aransas, Robstown and other areas of the Coastal Bend.
While coffee makes up half of its sales, the other half includes soft drinks, juice, paper goods and any typical supplies found in a break room, Munson said.
As for the top-selling coffee brands, Munson ranks them in order of first, second and third: Folgers, Starbucks and Community Coffee.
“Texas is a big Folgers market, and we sell a large amount of that,” he said. “Second most popular is Starbucks. As a matter of fact, when Starbucks first came to Corpus Christi, they educated consumers about having a stronger cup of coffee, and this actually helped to boost my sales.”
When it comes to planning for the future, Munson hopes to expand his company’s client base while streamlining operations.
“Back then, in 1987, we had 14 people on the payroll, and now we only have five, but we are doing three times as much sales with about 700 clients currently serviced,” he said. “We have a very low turnover rate. Our office manager has been here 30 years; one of our route drivers has been here 10 years; and another one three years.”
Looking back, Munson feels satisfaction knowing he was able to continue the legacy his father started.
“My dad passed away five years ago, and prior to that, I was so fortunate to have had the pleasure of working with him for an additional 25 years,” Munson said. “Now, I have seven children, some of whom are about to get to an age that they can start working. I’m hoping that someday I can pass on the business to the next generation.”
Bay Coffee Service is located at 6505 Robertson Drive in Corpus Christi. For more information, call (361) 853-5642 or visit bay.coffee.