Argo Tea
Encyclopedia
Argo Tea is a chain
of tea
cafes that was founded in the Lincoln Park
community area
in Chicago, Illinois, in June 2003. It is now headquartered in Chicago's Loop community area. It had more than a dozen locations in the Chicago metropolitan area before expanding in 2010 to New York City, where it opened four locations that year and then expanded to St. Louis and Boston. the chain had 26 locations and distribution in over 3,000 grocery store
s. Its expansion into grocery stores occurred in 2010 and 2011. Arsen Avakian is the current Chief Executive Officer
.
Argo Tea primarily sells a variety of hot and cold tea-based signature drinks. In addition, it offers about three dozen international varieties of loose-leaf tea (tea brewed from loose tea leaves, as opposed to tea leaves in bagged tea
), coffee
, baked goods, small entrée
s, and teaware
. The tea menu includes a variety of black, green, white, and natural herbal teas, served hot or iced. Argo Tea has formed a special relationship with Whole Foods Market
to distribute Argo products. According to the description in Bloomberg Businessweek, Argo's specialty foods include pastries, sandwiches, salads, and quiches. Argo markets from a lifestyle perspective with awareness of modern design and sustainable environment. It also sells audio CD
s.
of tea. Argo Tea was launched in 2003 by three partners: Arsen Avakian, Simon Simonian, and Daniel Lindwasser. Avakian and Simonian are boyhood friends from Armenia
. They grew up in Yerevan
and emigrated in the 1990s to the United States, where Simonian, a computer scientist
, and Avakian, a startup company
specialist, teamed up following the dot-com bubble
. Avakian first came to the United States as a Fullbright scholar. Lindwasser is a Frenchman that moved to the U.S. in 1997. He is a former management consultant. Avakian's father, Yuri, holds multiple wind and solar technology patent
s.
The original 900 square feet (83.6 m²) cafe for Argo Tea, which had 24 four indoor seats and 20 patio seats in its 2003 configuration, is located at 958 West Armitage Avenue on the corner of Sheffield Avenue
in Chicago. The venture, which opened in June 2003, was the first tea cafe in Lincoln Park. It was across the street from a Starbucks. Argo borrowed its name from the story of Jason
and the Argonauts
in Greek mythology
. The original store was financed by its founders, who were all experienced management consultants, without outside investors. They used their own credit card
as lines of credit
. Chicago architect Mark A. Cuellar was hired to design Argo's early cafe interiors.
At first, the company experimented with expansion by distributing boxed dry tea at Whole Foods
, but quickly restrategized. Barely six months after opening, Argo was planning expansion in Chicago and beyond. Late in 2004, Argo signed a lease to make its first expansion beyond its original location (at Loyola University
in the Near North Side
community area on Rush Street
). By the beginning of 2006, there was a third location (in the Loop community area on Randolph Street
near State
) with a fourth on the way. In March 2006, Argo expanded to the South Side of Chicago at the University of Chicago Medical Center, which is located in the Hyde Park
community area, with a location that is described as a teaosk, a themed kiosk
. By 2007, the company decided to pursue consistency across its locations and began a centralized concentrate brewing process. After five years, the franchise had 10 locations ranging from 1000 to 2000 sq ft (92.9 to 185.8 m2), all in Chicago. In Chicago, several of the early cafes, including the 11th inside Merchandise Mart
and the 13th at O'Hare International Airport
, have been located in close proximity to a Starbucks storefronts with the thought that Starbucks is expanding demand for tea. By February 2009, the company was still a Chicago metropolitan area business with all 13 of its locations. In July 2011, Argo became the first outside retail tenant of the Tribune Tower
in six years when it leased space.
Argo opened its flagship New York City location in January 2010 by signing a 10-year lease in the Flatiron Building
. It promptly followed with a Chelsea
neighborhood storefront and then a Columbus Circle
store in the spring. It opened a total of four cafes in New York City in 2010, taking advantage of the late-2000s recession, which allowed the company to procure prime retail locations such as Union Square
, Columbus Circle
and the Flatiron District at reasonable rates. The business replaced a Dean & Deluca
in the Union Square neighborhood. Among the investors in the New York City expansion were Sam Zell, Glen Tullman
and Oxford Capital. In May 2011, the company added its fifth tea room in New York City.
By 2010, the company eschewed its aspiration to be the Starbucks of tea, "Starbucks is more like Windows
PC
—it's old, less healthy and designed for everyone—and we want to be more like Mac
: young, healthy, cool and a more unique, innovative brand." Avakian said the company hopes to build the Apple of tea. At the time, it was opening its 18th store (14 in Chicago and 4 in New York) and had $10 million in annual sales, making it the largest chain focused on tea, according to Technomic Inc.
In 2011, the San Francisco Chronicle
credited Argo as being the company that caused the 21st Century tea shop revolution, while Time
ran a story claiming that Argo has gotten America to drink tea. , the United States market had grown to over 3,000 tearooms, according to the Tea Association of the USA. According to Beverage Digest
, between 2006 and 2009, coffee consumption declined 2.3 percent in the United States, while tea consumption rose 4.5 percent. The growth of teas has caused Starbucks to drop the word coffee from its name and build the Tazo
brand. Starbucks had a total 2010 revenue of $9 billion, while the entire tea industry was $7.7 billion, including $443 million by the top 6 U.S. tea chains. By early October 2011, Argo claimed 26 locations in four cities and distribution in 3,000 grocery store
s around the country including Whole Foods, Safeway
and Dominick's
.
Tea is the second most consumed beverage in the world, after water. Argo was founded in response to a realization that Americans had so few tea offerings that they generally were unfamiliar with anything but bagged teas. At the time, most tea retailers either supplied bulk tea for home brewing or traditional sit-down service, but Argo focused on premium specialty drinks in paper cups. Meanwhile, a minority of Asian immigrants from countries such as India, Vietnam and China where tea is the national beverage were spreading some of their traditions. Argo endeavored to emphasize the healthy aspects of tea as an alternative to coffee. When it was founded, Argo was part of a field of blossoming tea cafe franchises meeting a burgeoning demand. In 2003, retail sales of tea totaled $5.1 billion, and in 2005, as the specialty tea market was growing 20 percent per year, the total retail tea market was expected to surpass $10 billion by 2010. By 2002, there were 1,100 tearooms with sit-down service.
Argo began with 35 teas from around the world, including black tea, green tea and herbal chamomile as well as exotic teas. From the outset, it included a mix of traditional Asian teas as well as teas from exotic locations. One of the companies staple drinks came from a vacation to Ipanema beach in Rio de Janeiro
in which Avakian paid a juice bar operator to close shop allow him to experiment with flavor combinations during business hours. Several of its teas are seasonal. One of its signature drinks is the teappuccino, a black tea mixed with steamed milk and froth, which the company has trademark
ed. The menu leverages the new wave of specialty teas that may be served sweetened or spiced and that are blended with milk, sparkling water or fruit juices. In the early years, its favorite offerings were Bubble tea, Pomegranite tea, Matte Latte or Chai tea and milk and Tea sangria.
, according to the company's press release for the opening of its 20th location, the menu included "all natural tea-based signature drinks, over 30 varieties of loose leaf teas, fair-trade organic coffee, fresh-baked pastries, specialty foods, and a selection of teaware and accessories. The signature drink menu features healthy and unique options such Maté Laté™ with earthy maté, almond and milk, Green Tea Ginger Twist® with Japanese green tea and ginger root, MojiTea® with cool mint tea and lime juice as well as many others. The food menu features a wide assortment of freshly baked gourmet pastries, French quiches, and a SpecialTea Foods made with tea-infused ingredients such Teanie Panini, Tea Bites and wholesome Teapot Grains. Argo Tea’s ready-to-drink bottled beverages can also be found outside the cafés, in the finest grocery retailers across the country." Bloomberg Businessweek summarized Argo Tea's business as follows: "Chicago-based Argo Tea strives to redefine the message of tea as a healthy beverage and lifestyle choice, to create unique, all-natural tea-based beverages and to provide customer experiences that reflect modern designs and a sustainable environment." The teaware and accessories include tea pots, high-tech tea infusers, and wide variety of tea cups.
In its first years, the company sold illy
brand coffee. While the company imports its teas from sources around the world, it now brews its teas at a centralized location in downtown Chicago. Argo started out selling loose tea in 1- and 4-ounce bags or in bulk. Among Argo's Americanized drink varieties is a version of the national drink of both Argentina
and Uruguay
, the mate
, which Argo serves as a Mate late
. By 2010, the company ventured into the grocery store
market (Whole Foods and Treasure Island) with bottled specialty teas in Chicago and had plans for its own bottling facility. By the time the company opened its New York locations, it offered fair trade certified coffee
. In 2011, the company expanded its distribution to grocery stores around the country.
s that have been said to assist in preventing cancer and reducing blood pressure
and cholesterol
levels. In addition black tea, which contains L-theanine, is credited in one study with mobilizing the immune system
's disease-fighting T-cells. Another study also says teas may reduce halitosis
. Argo Tea has donated a large amount of white teas, which have high concentrations of antioxidants, to the University of Chicago Hospitals, contributing to cancer research
efforts there. This contribution prompted U of C to invite Argo to open the kiosk inside the hospital lobby. The company also holds tea seminars in conjunction with Northwestern University
and the University of Chicago
to build awareness of the possible health benefits and research possibilities for tea.
The company has an environmentally friendly
business plan that includes encouraging use of reusable service-ware such as ceramic mugs and plates and washable silverware by its dine-in customers. Argo also markets reusable tea tumblers, which enable its customers to obtain discounted pricing on its drinks. The company considers sustainability and environmental consciousness in all phases of its business including supplier, operations, store design and product decisions.
Chicago, IL 60601). The company has mostly part-time employees, but offers medical benefits to employees who work 20 hours per week. the workforce was about 150 people. A year later the estimated workforce was 200.
Despite its wide-ranging menu, , 80 percent of Argo's $15 million annual sales came from tea beverages.
In August 2011, Chicago Alderman Brendan Reilly ceded control of Connors Park in the Gold Coast
to Argo tea for development of a 1200 square feet (111.5 m²) store. The area had been neglected by the Chicago Park District
and become run down. In exchange for a 15-year lease, Argo assumes responsibility for maintaining the park.
Chain store
Chain stores are retail outlets that share a brand and central management, and usually have standardized business methods and practices. These characteristics also apply to chain restaurants and some service-oriented chain businesses. In retail, dining and many service categories, chain businesses...
of tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
cafes that was founded in the Lincoln Park
Lincoln Park, Chicago
Lincoln Park, is one of the 77 community areas on Chicago, Illinois North Side, USA. Named after Lincoln Park, a vast park bordering Lake Michigan, the community area is anchored by the Lincoln Park Zoo and DePaul University...
community area
Community areas of Chicago
Community areas in Chicago refers to the work of the Social Science Research Committee at University of Chicago which has unofficially divided the City of Chicago into 77 community areas. These areas are well-defined and static...
in Chicago, Illinois, in June 2003. It is now headquartered in Chicago's Loop community area. It had more than a dozen locations in the Chicago metropolitan area before expanding in 2010 to New York City, where it opened four locations that year and then expanded to St. Louis and Boston. the chain had 26 locations and distribution in over 3,000 grocery store
Grocery store
A grocery store is a store that retails food. A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are...
s. Its expansion into grocery stores occurred in 2010 and 2011. Arsen Avakian is the current Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
.
Argo Tea primarily sells a variety of hot and cold tea-based signature drinks. In addition, it offers about three dozen international varieties of loose-leaf tea (tea brewed from loose tea leaves, as opposed to tea leaves in bagged tea
Tea bag
A tea bag is a small, porous sealed bag containing tea leaves and used for brewing tea. Tea bags are commonly made of paper, silk or plastic. The bag contains the tea leaves while the tea is brewed, making it easier to dispose of the leaves, and performs the same function as a tea infuser...
), coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, baked goods, small entrée
Entrée
An entrée is a dish served before the main course, or between two principal courses of a meal.The disappearance in the early 20th century of a large communal main course such as a roast as a standard part of the meal in the English-speaking world has led to the term being used to describe the main...
s, and teaware
Teaware
Teaware encompasses a broad international spectrum of equipment used in the brewing and consumption of tea. Many components make up that spectrum, and vary greatly based upon the type of tea being prepared, and the cultural setting in which it is bring prepared...
. The tea menu includes a variety of black, green, white, and natural herbal teas, served hot or iced. Argo Tea has formed a special relationship with Whole Foods Market
Whole Foods Market
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products." The company has been ranked among the most socially responsible businesses and placed third on the U.S...
to distribute Argo products. According to the description in Bloomberg Businessweek, Argo's specialty foods include pastries, sandwiches, salads, and quiches. Argo markets from a lifestyle perspective with awareness of modern design and sustainable environment. It also sells audio CD
Compact Disc
The Compact Disc is an optical disc used to store digital data. It was originally developed to store and playback sound recordings exclusively, but later expanded to encompass data storage , write-once audio and data storage , rewritable media , Video Compact Discs , Super Video Compact Discs ,...
s.
History
Argo set out to be the StarbucksStarbucks
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and...
of tea. Argo Tea was launched in 2003 by three partners: Arsen Avakian, Simon Simonian, and Daniel Lindwasser. Avakian and Simonian are boyhood friends from Armenia
Armenia
Armenia , officially the Republic of Armenia , is a landlocked mountainous country in the Caucasus region of Eurasia...
. They grew up in Yerevan
Yerevan
Yerevan is the capital and largest city of Armenia and one of the world's oldest continuously-inhabited cities. Situated along the Hrazdan River, Yerevan is the administrative, cultural, and industrial center of the country...
and emigrated in the 1990s to the United States, where Simonian, a computer scientist
Computer scientist
A computer scientist is a scientist who has acquired knowledge of computer science, the study of the theoretical foundations of information and computation and their application in computer systems....
, and Avakian, a startup company
Startup company
A startup company or startup is a company with a limited operating history. These companies, generally newly created, are in a phase of development and research for markets...
specialist, teamed up following the dot-com bubble
Dot-com bubble
The dot-com bubble was a speculative bubble covering roughly 1995–2000 during which stock markets in industrialized nations saw their equity value rise rapidly from growth in the more...
. Avakian first came to the United States as a Fullbright scholar. Lindwasser is a Frenchman that moved to the U.S. in 1997. He is a former management consultant. Avakian's father, Yuri, holds multiple wind and solar technology patent
Patent
A patent is a form of intellectual property. It consists of a set of exclusive rights granted by a sovereign state to an inventor or their assignee for a limited period of time in exchange for the public disclosure of an invention....
s.
The original 900 square feet (83.6 m²) cafe for Argo Tea, which had 24 four indoor seats and 20 patio seats in its 2003 configuration, is located at 958 West Armitage Avenue on the corner of Sheffield Avenue
Sheffield Avenue
Sheffield Avenue is a north-south street in Chicago, Illinois. It is best known to sports fans as being the street just beyond the right-field bleachers of Wrigley Field....
in Chicago. The venture, which opened in June 2003, was the first tea cafe in Lincoln Park. It was across the street from a Starbucks. Argo borrowed its name from the story of Jason
Jason
Jason was a late ancient Greek mythological hero from the late 10th Century BC, famous as the leader of the Argonauts and their quest for the Golden Fleece. He was the son of Aeson, the rightful king of Iolcus...
and the Argonauts
Argonauts
The Argonauts ) were a band of heroes in Greek mythology who, in the years before the Trojan War, accompanied Jason to Colchis in his quest to find the Golden Fleece. Their name comes from their ship, the Argo, which was named after its builder, Argus. "Argonauts", therefore, literally means...
in Greek mythology
Greek mythology
Greek mythology is the body of myths and legends belonging to the ancient Greeks, concerning their gods and heroes, the nature of the world, and the origins and significance of their own cult and ritual practices. They were a part of religion in ancient Greece...
. The original store was financed by its founders, who were all experienced management consultants, without outside investors. They used their own credit card
Credit card
A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
as lines of credit
Line of credit
A line of credit is any credit source extended to a government, business or individual by a bank or other financial institution. A line of credit may take several forms, such as overdraft protection, demand loan, special purpose, export packing credit, term loan, discounting, purchase of...
. Chicago architect Mark A. Cuellar was hired to design Argo's early cafe interiors.
At first, the company experimented with expansion by distributing boxed dry tea at Whole Foods
Whole foods
Whole foods are foods that are unprocessed and unrefined, or processed and refined as little as possible, before being consumed. Whole foods typically do not contain added ingredients, such as salt, carbohydrates, or fat. Examples of whole foods include unpolished grains, beans, fruits, vegetables...
, but quickly restrategized. Barely six months after opening, Argo was planning expansion in Chicago and beyond. Late in 2004, Argo signed a lease to make its first expansion beyond its original location (at Loyola University
Loyola University Chicago
Loyola University Chicago is a private Jesuit research university located in Chicago, Illinois, United States. Founded by the Society of Jesus in 1870 under the title St...
in the Near North Side
Near North Side, Chicago
The Near North Side is one of 77 well-defined community areas of Chicago, Illinois, United States. It is located north and east of the Chicago River, just north of the central business district . To its east is Lake Michigan and its northern boundary is the 19th-century city limit of Chicago,...
community area on Rush Street
Rush Street (Chicago)
Rush Street is predominantly a northbound one-way street in the Near North Side community area of Chicago in Cook County, Illinois, United States...
). By the beginning of 2006, there was a third location (in the Loop community area on Randolph Street
Randolph Street (Chicago)
Randolph Street is a street in Chicago. It runs east-west through the Chicago Loop, carrying westbound traffic west from Michigan Avenue across the Chicago River on the Randolph Street Bridge, interchanging with the Kennedy Expressway , and continuing west. It serves as the northern boundary of...
near State
State Street (Chicago)
State Street is a large south-north street in Chicago, Illinois, USA and its south suburbs. It begins on the Near North Side at North Avenue. For much of its course, it lies between Wabash Avenue on the east and Dearborn Street/Lafayette Avenue on the west...
) with a fourth on the way. In March 2006, Argo expanded to the South Side of Chicago at the University of Chicago Medical Center, which is located in the Hyde Park
Hyde Park, Chicago
Hyde Park, located on the South Side of the City of Chicago, in Cook County, Illinois, United States and seven miles south of the Chicago Loop, is a Chicago neighborhood and one of 77 Chicago community areas. It is home to the University of Chicago, the Hyde Park Art Center, the Museum of Science...
community area, with a location that is described as a teaosk, a themed kiosk
Kiosk
Kiosk is a small, separated garden pavilion open on some or all sides. Kiosks were common in Persia, India, Pakistan, and in the Ottoman Empire from the 13th century onward...
. By 2007, the company decided to pursue consistency across its locations and began a centralized concentrate brewing process. After five years, the franchise had 10 locations ranging from 1000 to 2000 sq ft (92.9 to 185.8 m2), all in Chicago. In Chicago, several of the early cafes, including the 11th inside Merchandise Mart
Merchandise Mart
When opened in 1930, the Merchandise Mart or the Merch Mart, located in the Near North Side, Chicago, Illinois, was the largest building in the world with of floor space. Previously owned by the Marshall Field family, the Mart centralized Chicago's wholesale goods business by consolidating vendors...
and the 13th at O'Hare International Airport
O'Hare International Airport
Chicago O'Hare International Airport , also known as O'Hare Airport, O'Hare Field, Chicago Airport, Chicago International Airport, or simply O'Hare, is a major airport located in the northwestern-most corner of Chicago, Illinois, United States, northwest of the Chicago Loop...
, have been located in close proximity to a Starbucks storefronts with the thought that Starbucks is expanding demand for tea. By February 2009, the company was still a Chicago metropolitan area business with all 13 of its locations. In July 2011, Argo became the first outside retail tenant of the Tribune Tower
Tribune Tower
The Tribune Tower is a neo-Gothic building located at 435 North Michigan Avenue in Chicago, Illinois. It is the home of the Chicago Tribune and Tribune Company. WGN Radio also broadcasts from the building, with ground-level studios overlooking nearby Pioneer Court and Michigan Avenue. CNN's...
in six years when it leased space.
Argo opened its flagship New York City location in January 2010 by signing a 10-year lease in the Flatiron Building
Flatiron Building
The Flatiron Building, or Fuller Building, as it was originally called, is located at 175 Fifth Avenue in the borough of Manhattan, New York City and is considered to be a groundbreaking skyscraper. Upon completion in 1902 it was one of the tallest buildings in the city and the only skyscraper...
. It promptly followed with a Chelsea
Chelsea, Manhattan
Chelsea is a neighborhood on the West Side of the borough of Manhattan in New York City. The district's boundaries are roughly 14th Street to the south, 30th Street to the north, the western boundary of the Ladies' Mile Historic District – which lies between the Avenue of the Americas and...
neighborhood storefront and then a Columbus Circle
Columbus Circle
Columbus Circle, named for Christopher Columbus, is a major landmark and point of attraction in the New York City borough of Manhattan, located at the intersection of Eighth Avenue, Broadway, Central Park South , and Central Park West, at the southwest corner of Central Park. It is the point from...
store in the spring. It opened a total of four cafes in New York City in 2010, taking advantage of the late-2000s recession, which allowed the company to procure prime retail locations such as Union Square
Union Square (New York City)
Union Square is a public square in the Manhattan borough of New York City, New York.It is an important and historic intersection, located where Broadway and the former Bowery Road – now Fourth Avenue – came together in the early 19th century; its name celebrates neither the...
, Columbus Circle
Columbus Circle
Columbus Circle, named for Christopher Columbus, is a major landmark and point of attraction in the New York City borough of Manhattan, located at the intersection of Eighth Avenue, Broadway, Central Park South , and Central Park West, at the southwest corner of Central Park. It is the point from...
and the Flatiron District at reasonable rates. The business replaced a Dean & Deluca
Dean & DeLuca
Dean & DeLuca is a chain of upscale grocery stores. The first one was established in New York City's SoHo district by Joel Dean, Giorgio DeLuca and Jack Ceglic in September 1977. It is headquartered in Wichita, Kansas.-Locations:...
in the Union Square neighborhood. Among the investors in the New York City expansion were Sam Zell, Glen Tullman
Glen Tullman
Glen Tullman is the Chief Executive Officer of Allscripts Healthcare Solutions. Glen became the CEO after the merger of Allscripts and Eclipsys. Previously he was the CEO of Allscripts-Misys Healthcare Solutions, Inc. since August 1997 and Executive Vice President since September 2010. He was also...
and Oxford Capital. In May 2011, the company added its fifth tea room in New York City.
By 2010, the company eschewed its aspiration to be the Starbucks of tea, "Starbucks is more like Windows
Microsoft Windows
Microsoft Windows is a series of operating systems produced by Microsoft.Microsoft introduced an operating environment named Windows on November 20, 1985 as an add-on to MS-DOS in response to the growing interest in graphical user interfaces . Microsoft Windows came to dominate the world's personal...
PC
Personal computer
A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...
—it's old, less healthy and designed for everyone—and we want to be more like Mac
Macintosh
The Macintosh , or Mac, is a series of several lines of personal computers designed, developed, and marketed by Apple Inc. The first Macintosh was introduced by Apple's then-chairman Steve Jobs on January 24, 1984; it was the first commercially successful personal computer to feature a mouse and a...
: young, healthy, cool and a more unique, innovative brand." Avakian said the company hopes to build the Apple of tea. At the time, it was opening its 18th store (14 in Chicago and 4 in New York) and had $10 million in annual sales, making it the largest chain focused on tea, according to Technomic Inc.
In 2011, the San Francisco Chronicle
San Francisco Chronicle
thumb|right|upright|The Chronicle Building following the [[1906 San Francisco earthquake|1906 earthquake]] and fireThe San Francisco Chronicle is a newspaper serving primarily the San Francisco Bay Area of the U.S. state of California, but distributed throughout Northern and Central California,...
credited Argo as being the company that caused the 21st Century tea shop revolution, while Time
Time (magazine)
Time is an American news magazine. A European edition is published from London. Time Europe covers the Middle East, Africa and, since 2003, Latin America. An Asian edition is based in Hong Kong...
ran a story claiming that Argo has gotten America to drink tea. , the United States market had grown to over 3,000 tearooms, according to the Tea Association of the USA. According to Beverage Digest
Beverage Digest
Beverage Digest is a privately owned publication covering the global non-alcoholic beverage industry. It is free of advertising, relying on subscription revenue. The newsletter was founded in 1982 and publishes 22 regular issues a year...
, between 2006 and 2009, coffee consumption declined 2.3 percent in the United States, while tea consumption rose 4.5 percent. The growth of teas has caused Starbucks to drop the word coffee from its name and build the Tazo
Tazo
Tazo Tea Company is a tea manufacturer and distributor based in Portland, Oregon, now a division of Starbucks.-History:Tazo Tea was founded in 1994 by Steve Smith along with his business partners Stephen Lee and Tom Mesher. Lee and Smith had co-founded the Stash Tea Company in 1972...
brand. Starbucks had a total 2010 revenue of $9 billion, while the entire tea industry was $7.7 billion, including $443 million by the top 6 U.S. tea chains. By early October 2011, Argo claimed 26 locations in four cities and distribution in 3,000 grocery store
Grocery store
A grocery store is a store that retails food. A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are...
s around the country including Whole Foods, Safeway
Safeway Inc.
Safeway Inc. , a Fortune 500 company, is North America's second largest supermarket chain after The Kroger Co., with, as of December 2010, 1,694 stores located throughout the western and central United States and western Canada. It also operates some stores in the Mid-Atlantic region of the Eastern...
and Dominick's
Dominick's
Dominick's Finer Foods, Inc. is a grocery store chain and subsidiary of Safeway Inc. with locations mainly in the Chicago area, Illinois, USA. Dominick's distribution center is located in Northlake, while its management offices are located in Oak Brook....
.
Products
Argo began with 35 teas from around the world, including black tea, green tea and herbal chamomile as well as exotic teas. From the outset, it included a mix of traditional Asian teas as well as teas from exotic locations. One of the companies staple drinks came from a vacation to Ipanema beach in Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
in which Avakian paid a juice bar operator to close shop allow him to experiment with flavor combinations during business hours. Several of its teas are seasonal. One of its signature drinks is the teappuccino, a black tea mixed with steamed milk and froth, which the company has trademark
Trademark
A trademark, trade mark, or trade-mark is a distinctive sign or indicator used by an individual, business organization, or other legal entity to identify that the products or services to consumers with which the trademark appears originate from a unique source, and to distinguish its products or...
ed. The menu leverages the new wave of specialty teas that may be served sweetened or spiced and that are blended with milk, sparkling water or fruit juices. In the early years, its favorite offerings were Bubble tea, Pomegranite tea, Matte Latte or Chai tea and milk and Tea sangria.
, according to the company's press release for the opening of its 20th location, the menu included "all natural tea-based signature drinks, over 30 varieties of loose leaf teas, fair-trade organic coffee, fresh-baked pastries, specialty foods, and a selection of teaware and accessories. The signature drink menu features healthy and unique options such Maté Laté™ with earthy maté, almond and milk, Green Tea Ginger Twist® with Japanese green tea and ginger root, MojiTea® with cool mint tea and lime juice as well as many others. The food menu features a wide assortment of freshly baked gourmet pastries, French quiches, and a SpecialTea Foods made with tea-infused ingredients such Teanie Panini, Tea Bites and wholesome Teapot Grains. Argo Tea’s ready-to-drink bottled beverages can also be found outside the cafés, in the finest grocery retailers across the country." Bloomberg Businessweek summarized Argo Tea's business as follows: "Chicago-based Argo Tea strives to redefine the message of tea as a healthy beverage and lifestyle choice, to create unique, all-natural tea-based beverages and to provide customer experiences that reflect modern designs and a sustainable environment." The teaware and accessories include tea pots, high-tech tea infusers, and wide variety of tea cups.
In its first years, the company sold illy
Illy
illycaffè is a brand of coffee produced in Trieste, Italy.illy produces only one blend in three roast variations: normal, dark roast, and decaffeinated. The blend is packaged as whole beans, pre-ground coffee, E.S.E. pods, or iperEspresso Capsules....
brand coffee. While the company imports its teas from sources around the world, it now brews its teas at a centralized location in downtown Chicago. Argo started out selling loose tea in 1- and 4-ounce bags or in bulk. Among Argo's Americanized drink varieties is a version of the national drink of both Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
and Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
, the mate
Mate (beverage)
Mate , also known as chimarrão or cimarrón, is a traditional South American infused drink, particularly in Argentina, Uruguay, Paraguay, southern states of Brazil, south of Chile, the Bolivian Chaco, and to some extent, Syria and Lebanon...
, which Argo serves as a Mate late
Latte
A latte is a coffee drink made with espresso and steamed milk. Variants include replacing the coffee with another drink base such as masala chai, mate or matcha...
. By 2010, the company ventured into the grocery store
Grocery store
A grocery store is a store that retails food. A grocer, the owner of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells these "groceries" to customers. Large grocery stores that stock products other than food, such as clothing or household items, are...
market (Whole Foods and Treasure Island) with bottled specialty teas in Chicago and had plans for its own bottling facility. By the time the company opened its New York locations, it offered fair trade certified coffee
Fair trade coffee
Fair trade coffee is coffee which is purchased directly from the growers for a higher price than standard coffee. Fair trade coffee is one of many fair trade certified products available around the world. The purpose of fair trade is to promote healthier working conditions and greater economic...
. In 2011, the company expanded its distribution to grocery stores around the country.
Social efforts
Certain varieties of teas when properly prepared produce antioxidantAntioxidant
An antioxidant is a molecule capable of inhibiting the oxidation of other molecules. Oxidation is a chemical reaction that transfers electrons or hydrogen from a substance to an oxidizing agent. Oxidation reactions can produce free radicals. In turn, these radicals can start chain reactions. When...
s that have been said to assist in preventing cancer and reducing blood pressure
Blood pressure
Blood pressure is the pressure exerted by circulating blood upon the walls of blood vessels, and is one of the principal vital signs. When used without further specification, "blood pressure" usually refers to the arterial pressure of the systemic circulation. During each heartbeat, BP varies...
and cholesterol
Cholesterol
Cholesterol is a complex isoprenoid. Specifically, it is a waxy steroid of fat that is produced in the liver or intestines. It is used to produce hormones and cell membranes and is transported in the blood plasma of all mammals. It is an essential structural component of mammalian cell membranes...
levels. In addition black tea, which contains L-theanine, is credited in one study with mobilizing the immune system
Immune system
An immune system is a system of biological structures and processes within an organism that protects against disease by identifying and killing pathogens and tumor cells. It detects a wide variety of agents, from viruses to parasitic worms, and needs to distinguish them from the organism's own...
's disease-fighting T-cells. Another study also says teas may reduce halitosis
Halitosis
Halitosis is a term used to describe noticeably unpleasant odors exhaled in breathing. Halitosis is estimated to be the third most frequent reason for seeking dental aid, following tooth decay and periodontal disease.- General :...
. Argo Tea has donated a large amount of white teas, which have high concentrations of antioxidants, to the University of Chicago Hospitals, contributing to cancer research
Cancer research
Cancer research is basic research into cancer in order to identify causes and develop strategies for prevention, diagnosis, treatments and cure....
efforts there. This contribution prompted U of C to invite Argo to open the kiosk inside the hospital lobby. The company also holds tea seminars in conjunction with Northwestern University
Northwestern University
Northwestern University is a private research university in Evanston and Chicago, Illinois, USA. Northwestern has eleven undergraduate, graduate, and professional schools offering 124 undergraduate degrees and 145 graduate and professional degrees....
and the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
to build awareness of the possible health benefits and research possibilities for tea.
The company has an environmentally friendly
Environmentally friendly
Environmentally friendly are terms used to refer to goods and services, laws, guidelines and policies claimed to inflict minimal or no harm on the environment....
business plan that includes encouraging use of reusable service-ware such as ceramic mugs and plates and washable silverware by its dine-in customers. Argo also markets reusable tea tumblers, which enable its customers to obtain discounted pricing on its drinks. The company considers sustainability and environmental consciousness in all phases of its business including supplier, operations, store design and product decisions.
Corporate information
Although the company was founded in Lincoln Park, the official business address is at the third location in the Loop (16 West Randolph StreetChicago, IL 60601). The company has mostly part-time employees, but offers medical benefits to employees who work 20 hours per week. the workforce was about 150 people. A year later the estimated workforce was 200.
Despite its wide-ranging menu, , 80 percent of Argo's $15 million annual sales came from tea beverages.
In August 2011, Chicago Alderman Brendan Reilly ceded control of Connors Park in the Gold Coast
Gold Coast Historic District (Chicago, Illinois)
The Gold Coast Historic District is a historic district in Chicago, Illinois. Part of Chicago's Near North Side community area, it is roughly bounded by North Avenue, Lake Shore Drive, Oak Street, and Clark Street....
to Argo tea for development of a 1200 square feet (111.5 m²) store. The area had been neglected by the Chicago Park District
Chicago Park District
The Chicago Park District is the oldest and largest park district in the U.S.A, with a $385 million annual budget. It has the distinction of spending the most per capita on its parks, even more than Boston in terms of park expenses per capita...
and become run down. In exchange for a 15-year lease, Argo assumes responsibility for maintaining the park.