Todd Carmichael and Jean-Philippe Iberti are the co-founders of La Colombe Coffee Roasters, one of the pioneering companies in America's third wave coffee movement alongside Intelligentsia and Counterculture Coffee.

Todd grew up in poverty in rural America, earned a running scholarship to the University of Washington, and worked at Starbucks warehouses before becoming a barista. JP was born in Nice, France, where his father ran a successful produce business, and came to Seattle for flight school before discovering his passion for coffee.

The episode chronicles their journey from part-time baristas in 1980s Seattle to building a national coffee empire, including their direct sourcing relationships with farmers worldwide, the creation of the draft latte innovation, and their dramatic escape from a problematic private equity investment that nearly derailed their vision.

Two Baristas Meet Over a Gold Vest and Gas Stove

Todd and JP met in 1987 at a Seattle venue where Green River (later Pearl Jam) was playing, when JP asked Todd if he could use his gas stove for cooking.

"He's got a gold, like looks, I think it's silk vest over a white, puffy sleeve shirt. And it's this French guy, and he actually reaches over the bar and says, may I have a champagne, please?" - Todd

For three years, JP cooked dinner at Todd's house every Thursday, Friday, and Saturday night while they dreamed of starting "the world's best coffee company."

The $95,000 Plan: Three Years in Monte Carlo

Todd left his Ernst & Whitney tax consulting job and moved to Monte Carlo for three years to save $95,000 for their coffee company startup.

"I found a little boat. I reconditioned it and I lived on it. So basically, I always kind of embraced the idea that, you know, you could save money by living in poverty" - Todd

Todd wrote their business plan by hand with a pen while in Europe, focusing on serving high-end restaurants during America's anticipated "restaurant renaissance."

When Todd returned to Seattle in 1993, he squatted in JP's closet and refused to leave until JP agreed to start the company together.

Philadelphia: Ground Floor of a Restaurant Renaissance

Despite Seattle being the epicenter of U.S. coffee culture, they chose Philadelphia because "if you're going to take an elevator ride and you're looking to get altitude, you want to get in on the ground floor."

Philadelphia had Le Bec Fin, voted the #1 restaurant in America, but "there wasn't one cup of coffee" worth drinking in a city of over a million people.

They found two side-by-side narrow storefronts on Rittenhouse Square, smashed the wall between them, and started La Colombe with $500 left in their bank account.

Todd jackhammered a hole into a 20-story garbage chute to create ventilation for roasting, hiding behind the bar when fire departments came 2-3 times per week.

Walking Into Kitchens: The Le Bec Fin Strategy

On October 15th, 1994, they walked uninvited into Le Bec Fin's kitchen, cleaned the equipment, made coffee, and presented it directly to Chef Georges Perrier.

"He actually picked the grinder up with the old stuff and threw it all in the trash and said, go get your shit" - Todd, describing how they landed their first account

They used the same strategy at Jean-Marie Lacroix's Four Seasons restaurant the same day, securing two of America's best restaurants as clients immediately.

Their coffee sold for $4.50 per pound wholesale compared to the industry standard of $1.50, positioning coffee as "a spice" rather than a commodity.

Direct Trade: From Swiss Farmers to Haitian Mountains

They began sourcing directly from farms in the late 1990s, starting with a Swiss-owned plantation in Brazil and expanding globally to places like Haiti and El Salvador.

"In places like Haiti or in Africa, you have to show a resilience that you're coming back time and time and time again" - Todd on building farmer relationships

Todd went from being called "Em Blanc" (a white guy) to "Le Blanc" (the white guy) in Haiti, signifying acceptance and trust from local farmers.

Direct sourcing allowed them to bypass chains of 10+ middlemen who left farmers "making pennies" while capturing most of the value.

The 52-Day Private Equity Nightmare

In 2007-2008, seeking expansion capital, they took private equity investment that lasted exactly 52 days until the first board meeting revealed fundamental disagreements.

"I said, okay, I believe that cold brew is going to be a thing, and La Colombo needs to be the father of it. And they said, nah, we don't want to do that" - Todd

The investors wanted them to build 200 cafes instead of focusing on innovation like ready-to-drink coffee products.

Todd told the private equity firm "we're out of here, we're going to buy you out" and doubled their investment to escape the partnership.

Hamdi Ulukaya and the Draft Latte Revolution

Todd approached Chobani founder Hamdi Ulukaya as a "craftman" who would understand their vision for innovation over rapid cafe expansion.

Todd created the first draft latte by drilling a hole in a can, installing a volleyball valve, and pressurizing it with nitrous oxide to make it self-foaming.

"I said, this is going to be the most expensive coffee you've ever tasted. And yeah, he loved it" - Todd on pitching Hamdi

The draft latte cans are now distributed in roughly two out of three U.S. grocery stores, validating their innovation-focused strategy over rapid cafe expansion.

Resources Mentioned

Race to the Bottom of the Earth

Documentary about Todd Carmichael's world speed record trek to the South Pole on foot, unassisted, aired on National Geographic Channel - mentioned as additional achievement beyond founding La Colombe