Corporate Coffee Systems focuses on expertise and execution in office coffee and pantry service

He is a New Yorker through and through. A loyal Mets fan, passionate about his business, dedicated to his employees and, like every busy entrepreneur, amazed that 40 years have gone by in a “New York minute.”

David Henchel, president and CEO of Corporate Coffee Systems, has been a part of the New York City business community for a long time, including 40 years as an operator. He had a job at a coffee service company in high school and was intrigued by the business — enough to start his own company in 1985.

He worked during the day and enrolled in night classes at Long Island’s Hofstra because “I thought I needed to go to college to get ahead,” explained Henchel. “It was a short stay because I found that the professors that I came in contact with didn’t have the same type of context that I was experiencing out in the business world, even though it was just the beginning for me.”

“Before we knew it — along with my brother Gregg and my childhood friend Donn Luti — we decided that we would go out on our own,” he said. “We just started it from scratch, from zero.” While his brother and Luti are no longer working in the business on a daily basis, Henchel said that without them, there would be no business to discuss 40 years later.

Henchel noted that starting up in 1985 was considerably easier than it would be today. “The cost of entry back in 1985 was minimal. We were placing equipment that was a couple of hundred dollars at the most, and it was easy to get into a new account. Nothing like today,” he said.

What has not changed for Henchel is his vision of what Corporate Coffee Systems would become and the core values for the company. “I’ve felt very strongly about this since day one,” he said.

“Number one: Offer the most compelling solution to the customer. I really believed in this as a young man, and we are dedicated to this idea today. Number two: Make sure that Corporate Coffee Systems will always be a very profitable company. I’m not ashamed to be profitable. The third core value is also very important to me. I want to be sure that Corporate Coffee Systems is a great place to work,” Henchel said.

Focused on coffee, pantry and water

Corporate Coffee Systems has enjoyed steady growth over the years, both organically and through more than 30 acquisitions. The company’s 75 employees are focused on OCS, pantry service, water and ice, and office supply, serving a large customer base in the greater New York area.

According to Henchel, his team is clear on what it takes to differentiate itself. “Our company must be perceived as an expert in what we offer — coffee, pantry, water solutions and execution,” he said.

Corporate Coffee Systems was in the early version of the pantry service business long before it was even known as pantry. “The New York OCS business was very developed even back in the mid-80s,” said Henchel. “While operators in other parts of the country might have gone to market with coffee and a more limited allied product offering, our SKU list was probably around 750 to 1,000 products, including paper plates, utensils, napkins, soda, snacks and candy,” he said. Henchel added that the service was needed by many of the garment-industry showrooms his company served at the time.

While Henchel and his team have been pantry service experts for a long time, that aspect of the business has evolved, and so has Henchel’s approach to it. “In the pantry service business today, it is very important to understand your costs,” he said. “A successful pantry service relationship requires a reasonable budget on the customer’s side. The customer needs to understand that they are going to spend a certain amount, so it makes sense for us to stock and deliver products in their facility. The operator needs to be clear on how many SKUs will be required. Having the software and technology to help us manage the program is critical.”

Henchel pointed out that there are many operators offering pantry service in the New York market, so our team must look beyond product selection and pricing and never stop prioritizing solid execution and relationship building. That’s what I think sets us apart.”

On the water side of the business, Henchel has doubled down on establishing the company as a recognized expert in great hydration solutions. “If you look at it from the perspective of a potential customer, I’m not sure that they always see a coffee service as a water expert,” Henchel said. “We certainly have been selling water coolers since we entered the OCS business. In fact, we were one of the first coffee services to offer 5-gallon water in the early 80s when there were a lot of bottled water companies in New York — but that never qualified us as experts.”

To establish itself as a leader and expert in the water space, Corporate Coffee Systems recently trademarked its own water brand, THYRST, with the tagline, “Hydration Pure & Simple.” Henchel said the move is more than a marketing effort; it is part of a commitment to providing clients with the highest quality, purest drinking water. “With the launch of THYRST, we feel we have established ourselves as a go-to for water just like our coffee and pantry solutions,” he said.

Misunderstood: office products

There is another product line at Corporate Coffee Systems that is often overlooked — office supply, which Henchel believes is misunderstood, but certainly offers some upside. “There’s a fallacy about the office products business,” he said. “While the core office products business — copy paper, print, print cartridges, pen and staples — is certainly in decline due to technology and remote work, those office supply customers are also breakroom customers, so it does create opportunities for us.”

Another critical area Henchel likes the team to always focus on is account profitability. Henchel noted that operators must understand the minimum revenue required to justify a piece of equipment or a portfolio of equipment at a customer’s location. “ROI clarity by account and by machine ensures that we will achieve the necessary minimum revenue that’s been promised relative to the equipment we have installed,” he said.

Henchel also pays attention to other non-product revenue drivers such as equipment rentals, filter changes and service-related fees. “It’s absolutely critical for operators to understand what it costs them to run their business and to understand the revenue they’re generating per customer,” he said. 

Henchel feels that Corporate Coffee Systems enjoys a serious marketing advantage: a full-floor service center and sales office. This office space is a powerful showroom and a strong asset for his sales team. “Customers love to visit and try out different options,” he said.

Henchel is appreciative

Corporate Coffee Systems is proud to have earned recognition through numerous industry awards throughout its 40-year journey. But as Henchel was quick to point out, none of these accolades would be possible without the CCS employee contributions, creativity, dedication and ingenuity that have driven this company for so long.

“There are so many people to acknowledge, like my director of operations Bryant DeFranco, who runs the business, and Edward Luti, our master of brand management and creative marketing,” he said. “Additionally, the work of our HR leadership, Lisa Stone, is so impactful,” Henchel said. “Times have changed. It wasn’t that long ago that HR talk was about payroll and paperwork. Today, they are responsible for our business culture and maintaining a working environment that attracts people, and this can’t be faked,” Henchel said.