Wellingtonian Interview: Steve Gianoutsos - The Mojo Man

BY JOSEPH ROMANOS

Mojo founder Steve Gianoutsos talks about the attractions of Rome, why he drinks black coffee and the dangers of his business expanding too quickly.

Wellingtonian: Where did the name Mojo come from?

Gianoutsos: Back in 2002 when Julie [his wife] and I came up with it, it was a bit of a catchphrase. I like the meaning of the word and it's not too serious-sounding.

Wellingtonian: How many Mojo outlets are there?

Gianoutsos: Eighteen – 13 in Wellington, one in Auckland, one in Christchurch and three in Dunedin.

Wellingtonian: You started in 2003. That's a very quick expansion.

Gianoutsos: If I thought back to how I felt in 2003, I'd be surprised at where we are now. I'd have thought that to have that many by now would be a big challenge. But it's been step by step. When you're involved you don't notice the growth so much. It's a bit like having kids. You don't notice them growing until you are away from them for a while.

Wellingtonian: Is there a danger of too much expansion?

Gianoutsos: The various Mojos are not franchises. They are all run by our former staff, who understand what we are about. I try to get around to all the cafes every couple of weeks, but it's getting harder to keep an eye on them all. It's a matter of ensuring the right people are running them.

Wellingtonian: What about moving into overseas markets?

Gianoutsos: Well, Australia would seem a good fit, because it's close and the market is similar. However, the coffee market there is very well-supplied. We are working on some overseas plans.

Wellingtonian: All your cafes are designed by Allistar Cox. Do you aim for a standardised look?

Gianoutsos: We do a bit, but we aren't a McDonald's. You have to allow for individual flair and also tailor the place to the area. What's right in one place might not be in another. With Allistar, every new location is a blank canvas. Our cafes are all different. We have customers who will walk past one to get to another. They might like the feel of the place, or the coffee they get there.

Wellingtonian: How important is food is your cafes?

Gianoutsos: Extremely important. It's our biggest worry. We think we have the coffee pretty right, but with the food, we're always trying to keep the menu fresh and ensure the quality is there. When we opened our first Mojo, in Wakefield St, we served just coffee and couldn't understand why we were busy only in the morning. The key is the food.

Wellingtonian: Are Wellingtonians good coffee drinkers?

Gianoutsos: They are New Zealand's biggest coffee drinkers and are quite sophisticated in their tastes. Wellingtonians will organise a meeting in a cafe. Aucklanders, by contrast, seem more inclined to grab a coffee on their way to a meeting in the boardroom.

Wellingtonian: Is the New Zealand cafe market near capacity?

Gianoutsos: Not at all. About 75 per cent of coffee drunk in New Zealand is still instant coffee, so there's plenty of room for growth. While there are still landlords who say they would like a Mojo for a tenant, there's room for expansion.

Wellingtonian: Are you tempted to move into the suburbs?

Gianoutsos: Not really. In this business, you need the population, the heavy foot traffic. We'd have to be charging double the price for a cup of coffee in a suburb to be financially viable, and even though I feel our coffee is probably under-priced, I don't think the market would stand that.

Wellingtonian: How many cups of coffee do you drink a day?

Gianoutsos: Less than I used to! Sometimes two or three, sometimes 20. It doesn't have an effect on me – I can drink black coffee in bed. My favourite is flat white, but with me the issue is the milk, not the coffee.

Wellingtonian: How many coffees do Mojos sell a week?

Gianoutsos: About 30,000. Sometimes we get up to 32,000. We monitor it very closely.

Wellingtonian: Which cities do you like?

Gianoutsos: I really like Wellington. The atmosphere here, the vibe, is great. Overseas, Rome is my favourite, but preferably in the off-season. The people are full of life, but not rude or arrogant. I have learnt a lot from the way they do things in Italy generally, and have brought some of those ideas back to our cafes here.

Wellingtonian: How long have you been involved in the coffee industry?

Gianoutsos: I've been in the hospo industry all my life; it's my spiritual home. My father was always in the cafe business, and I seem to have worked in them since I was about three. My father and I are still working together.