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Kombucha bar eyes Hina's Tea space

by Brandon Darnell, published on April 10, 2012 at 7:03 PM

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Two Sacramentans are looking to bring a kombucha bar to the Midtown space that formerly housed Hina’s Tea by the end of July, if they can raise $50,000 via the Internet to launch.

The drink, which is carbonated through a fermentation process, contains probiotics and a living culture, co-owner Joseph Melrose said, adding that the probiotics are good bacteria that typically are absent in the average American diet.

“It really works to helping with everything from irritable bowel syndrome to bad hair and bad skin,” he said. “People have been drinking it for 2,000 years for its health benefits.”

Kombucha Kulture will not brew its own kombucha – a fermented tea drink – but stock about 10 flavors from at least four suppliers in or around the Bay Area, co-owner Brianne Giatras, 26, said.

Flavors range from gingerberry and elderberry to a milder vanilla and honey concoction Giatras said has the best mass-market appeal.

The 16-ounce glasses of kombucha will run about $3 or $4 on average, with some possibly being around $5, Giatras said. No food will be made in-house, but she said she wants to have premade sandwiches and baked goods on offer.

Melrose, 32, said kombucha can be an acquired taste – similar to starting with a light beer before acquiring a taste for a heavy stout – and people coming into the future business will be able to sample different flavors.

Kombucha on tap isn’t a unique idea, but Melrose said the only place he knows of to get it locally is Whole Foods in Folsom, and he and Giatras want to bring it to the central city.

“It’s much fresher tasting on tap,” Giatras said.

During this week’s Second Saturday Art Walk, Kombucha Kulture will set up at Denim Spot, 1050 20th St., to serve samples.

The problem Melrose and Giatras had when looking to start the business was finding a bank to front them approximately $50,000 needed to turn the former Hina’s Tea space at 2319 K St. into a kombucha bar.

Giatras said that is when they turned to Kickstarter, an online funding mechanism that allows anyone to put up financial backing to businesses they support.

“What we’re doing with the Kickstarter campaign is trying to raise the funds to get a lease going on the building on K Street,” Giatras said. “There’s some construction that has to be done, but it’s pretty much built out for what we need.”

Half of the $50,000 will go to equipment such as a tap system, refrigeration and an espresso machine. Another $8,000 is designated to go to construction costs, $7,500 will go toward the lease and deposit, $5,000 goes to Amazon and Kickstarter as part of the fundraising policy, and $4,500 will go to purchasing the products.

The deadline to raise $50,000 on Kickstarter is May 17, and so far the couple has raised more than $2,300, but Giatras said the campaigns tend to pick up as the deadline nears.

Another local business recently received funding via Kickstarter to produce unique bicycle racks. Click here to read more.

If the campaign is successful, Giatras said, she hopes to have the space open for business in late July. If the money isn’t raised, she said she and Melrose aren’t planning on giving up, but will continue saving money to eventually move forward with the business.

For more information on Kombucha Kulture, visit the company’s website. To view the Kickstarter page, click here.

Brandon Darnell is a staff reporter for The Sacramento Press. Follow him on Twitter @Brandon_Darnell.

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April 10, 2012 | 11:48 PM
Great article Brandon.
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April 11, 2012 | 2:12 PM
Thank you Brandon!
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edited on  April 11, 2012 | 4:14 PM
..."The problem Melrose and Giatras had when looking to start the business was finding a bank to front them approximately $50,000 needed to turn the former Hina’s Tea space at 2319 K St. into a kombucha bar".

That is likely because most business fail, and mostly from undercapitalization, and risk capitol is lost. Odds are the business will be a sub chapter S, and if successful the owners will appear (to the uninformed) as one of the dreaded 1% ers, even though they may never personally see a payday.

I do so love the entrepreneurs spirit!
Small businesses are the backbone of America.

Good luck in this unique way to fund the start up.

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April 15, 2012 | 9:05 AM
I agree. The only thing I take issue with is that most businesses fail from under-capitalization. It's true that the more money you have to begin with, the better your chances of success will be. Having an extra cushion for unexpected expenses really helps you. Don't fund your business through debt! Under-capitalization is only one factor for failure and it is often used to mask the other underlying factors. That is why I say start modestly. And don't expect to know and do everything yourself. If you don't know how to do something or don't enjoy doing it (like bookkeeping, payroll, web site, deep-cleaning, etc.) then find someone who does - before you open- not after- it will be worth the added cost. But most importantly, never, ever neglect your customers by handing them off to disinterested employees nor let your product become second-rate.
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April 11, 2012 | 6:55 PM
Great story!

What a unique offering, I hope they do well.

I think the Kickstarter crowd funding method is a great way to gauge community interest as well.
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April 11, 2012 | 8:29 PM
I'm excited about the project. Kombucha is an amazing beverage and I'm glad it's becoming more popular.
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April 15, 2012 | 8:31 AM
The the space at 2319 K St. is in a small attractive Mid-Century modern building and the former tenants, Hina’s Tea, really fixed the space up nicely. However, I would really caution you guys about doing business with the owner of the property. He is trouble. I don't have a personal vendetta against him. I've never personally dealt with him but I know several different people/business who have over the years and they all say the same thing. IMO you would be better off finding another place.

You also might want to think about starting out a little more modestly and lowering your start-up costs and overhead.
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edited on  April 16, 2012 | 1:37 PM
I know the space for lease and it's a really nice place. The owners are very professional and helpful and have been victimized in the past for doing nothing more than maintaining their end of a landlord-tenant relationship. They are good people and care.

A lot of people that rent space from small landlords here in mid-town are good people as are their landlords. However there are some tenants that have no business running a business regardless of how much money they have and when they screw up they are moaners----, they blame their 1st grade teacher, their mom and dad, their staff, their car that broke down and sometimes their own customers!- You ask some of my past girl friends and they'll tell you I picked my nose and bought them dinner and forgot to feed their cat. I am mean and dirty I guess.

I've rented a few East Sacto. homes to people and they create an image of me as the evil landlord when when I call and ask for the rent check 5x and they or I have to ask them to not own a pet when it says in the lease they can't have one. Talk to any landlord, property manager or banker and you will hear the nicest people sometimes are the worst at maintaining their lease obligations- I've been there!. So, my advice is to taste the food yourself, see the movie yourself, meet the person yourself, read the book yourself or smell the roses with your nose instead of passing judgement on something you don't know first-hand.

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April 17, 2012 | 7:21 AM
What a ridiculous argument. As you say their are good and bad landlords and tenants. Maybe the this property-owner you seem to know is one of those nice guys but has no place being a landlord?
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April 17, 2012 | 8:57 AM
Well, you see my point. In this case, they are perfectly nice folks that know what they are doing and run their business well. Infact, they are too nice and bend overbackwards for their tenants more than I would. So, to move forward here my point is that people the spread rumors about landlords, nasty teachers, dog beaters and postal workers need to cool it. Just take the neutral position and withold judgments in life and the world would be in a lot less of a mess. Thanks
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April 17, 2012 | 9:41 AM
Actually, from what I hear he's not a bad landlord as such. Rather that I think he might have a difficult personality at times. Not that he's a bad person. I just wanted to caution a new start-up that maybe someone with a little more experience under their belt would be better able to handle his personality. That's all. An eccentric landlord can be good or bad depending on each party's personality and no one starting out needs that kind of distraction.
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April 17, 2012 | 9:46 AM
Landlord aside, kombucha is fantastic! Here in New York City, you can get it in every corner convenience store, even at 4 in the morning, and a kombucha bar opened in Williamsburg in February, though I haven't been there. Perhaps the potential owners should fly back and check it out. http://blogs.villagevoice.com/forkintheroad/2012/02/kombucha_party.php
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April 17, 2012 | 11:42 AM
I wonder if there's enough 'kombuchaheads' around here to make it successful? Brooklyn is one thing, Sacramento's another. I'm sure kombucha is good for most people. I have drank the stuff from time to time since the 1980's but I can't say if it helped or not.

BTW David did you move to NYC or just visiting? I haven't been to Williamsburg in years. Driggs Avenue Pizza used to be my favorite. Don't know if it's still good and it was never healthy but I miss it.
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April 17, 2012 | 6:18 PM
I have never drank the stuff and it sounds good. BUT...

I am thinking that such a limited venue might indeed cause my landlord friends (and this the quirky landlord mentioned above) and others that i don't know to probably be a bit stressful and have a difficult personality considering that his is a never tested market here in Mid-Sacramento and not NYC.And, it is very narrow in income generation-. Given this, it would be very risky to rent to this venture in my mind. I would be careful of the venture and try to expand with equally unique foods and other sales to balance the income and allow ample funds to pay rent, make payroll and make an attractive place to enjoy the vibe they are trying to create.

So...I wish them all the best and hope that is this is not a dream but can actually happen.
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April 17, 2012 | 9:10 PM
Kirt we all know you are the Landlord. it's pretty sad that so many people feel this way about you in Sacramento. The fact that your location has sat vacant for 2 years + says it all. Good luck buddy. The guys at Kombucha Kulture truly need to reconsider.
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JWS
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edited on  April 18, 2012 | 8:51 AM
I agree about widening the appeal to more customers. Why not add a fresh fruit & veggie juice bar? Maybe they should start out as a business within a business first. Like partner with Sugar Plum or the Vegan shop.

As for the landlord's supposed risk - I don't see how the landord is taking on much of a risk by collecting money every month for a space that has sat empty not generating any income for awhile. Any landlord assumes a certain amount of risk and responsibility in exchange for that rent. Unless the landlord agrees to pay for certain specific leasehold improvements and thinks they won't recover those cost because the tenant won't be around long enough. But that's what contracts are for.
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