Coffee machines brew success for Swiss couple

Thermoplan has won a contract to supply its coffee machines to Starbucks. Thermoplan

A trip to the Thermoplan offices in Weggis in central Switzerland is like no other. It is almost like stepping into a fairy tale.

But the company located in the celebrated resort in canton Lucerne does not make the stuff of dreams. It makes coffee machines.

While it would be rather tempting to scoff and ask “so what?”, it is something of an eye-opener to take a look behind the scenes of what is undoubtedly one of Switzerland’s most successful small enterprises.

Thermoplan is, in fact, the world leader in the manufacture of high-end coffee machines.

The company is the baby of Domenic and Esther Steiner, a couple who have built up the company into a business that eagle-eyed investors would love to snap up. They can forget it – it is not for sale.

The company makes coffee machines that most people will never have heard of or perhaps even seen. These are fully automatic machines for professionals who need a product than can make up to 2,000 cups a day – without problems.

Starbucks

When you hear that Starbucks is one of Thermoplan’s customers – a United States coffee giant that has an annual turnover of about $3 billion and attracts 13 million people a week to its 5,000 coffee shops worldwide – the business of making coffee machines becomes a little more interesting.

Knowing that the Starbucks chain hopes to double the number of its coffee shops to 10,000 by 2005, and that Thermoplan is the company manufacturing the coffee machines makes it even more remarkable.

The contract doubled the volume of production at the company and its sales revenue, which last year stood around SFr40 million.

However, when you hear from the Steiners that they would not want to rely on Starbucks solely for their business survival – let alone success – it is intriguing to find out what lies at the heart of the company.

A trip to Weggis, described by the guidebook as the “queen of resorts” on the Lake of Lucerne, is an experience in itself.

“Come by boat from Lucerne,” explained Domenic Steiner over the telephone, “it’s the quickest way.” What he did not say was that this is a more than pleasant way for anyone to pay a visit. Travelling through the winter fog to Weggis on the Lake of Lucerne is like entering another world.

The story of Thermoplan began in 1974 when Steiner founded the company to produce ventilation equipment for the restaurant trade. He could see that there was a big need to improve hygiene.

Big breakthrough

But the big breakthrough for the company – and the start of its success – came in 1983 when Domenic and Esther Steiner decided to focus their business on development, production, sales and distribution of specialty equipment for the food and beverage industry.

The first product developed was a cream whipper which was such a hit that 6,300 units were sold in 1990. As the market leader, it is still sold in more than 50 countries.

“After our first success came the trend for people to enjoy cappuccino, and for a good cappuccino you need good milk foam,” Domenic Steiner told swissinfo.

“Our idea was to make a very special milk foam machine to help restaurants create the same high quality of cappuccino every time,” he added.

That idea caught on too, to such an extent that importers pleaded with the Steiners to make a coffee machine.

“They told us that they had to be like our other products: easy to use, easy to maintain and reliable,” he said.

Coffee machines

Steiner had no experience in making coffee machines but found someone in canton Valais who did … but whose company had gone bankrupt. The rest, as the story goes, is history. The man he met, Jean-Paul In-Albon, is now part of the Thermoplan family, developing new ideas for the company.

The coffee machine for professional use, aptly named “Black and White”, attracted a lot of interest when it went into production in 1996. But it was not until 1998 that Starbucks decided to make their coffee with fully automatic machines.

A special team was set up by the chain to look at all the world’s coffee machine manufacturers, including Thermoplan, to find the best product available.

A three-day visit to Weggis followed by a six-month trial of 10 Thermoplan coffee machines in Vancouver, Canada, was enough to convince Starbucks which of the three finalists would win the contract.

“Our machine is developed for long life and the coffee product has to be excellent,” said Domenic Steiner. “This was the main point for Starbucks in deciding what machine they would use in the future.”

Another convincing argument was that the Thermoplan machine is made out of four modular components that can be replaced in a very short time if there is a problem. This means that coffee production is never interrupted.

Deciding factor

“This modular system is unique and replacement can be done quickly. This was also a deciding factor,” he added.

Asked about the secret of Thermoplan’s success, Esther Steiner is in no doubt. “First of all, it is the product. It has to be perfect. Another important point is the relationship with our partners around the world. Our customers need to know that they can rely on us 100 per cent,” she said.

However the real driving forces behind the company are Domenic and Esther Steiner themselves – the 50-50 partnership behind Thermoplan.

“My husband is the engine of the ship and I do the steering. I suppose you could call me the soul of the company and he is the motor,” Esther Steiner told swissinfo.

“I was born under the Zodiac sign of Libra (the scales) so I try to keep balance in the company. I have no office hours. I’m just a member of the family,” she added, modestly.

A tour of the company reveals just how strong the family ties are. Everyone seems to have a genuine smile, yet no one has a written contract – something that most unions would consider an instant sign of distrust. The opposite is the case at Thermoplan.

Highest values

“Of course, it’s unusual but one of the highest values is confidence, and that means on both sides. We shake hands when we employ people and say that we go together into the future. We look after our employees well and their families too,” Domenic Steiner said.

Employees are paid above average salaries and for that they work a 45-hour week. This is 2 ½ hours longer than the average but they do it willingly, added Domenic Steiner.

One of the family rules is that the 85 employees are forbidden to go to the bank to take out small-scale loans. It is something which is hard to believe but which cannot be ignored when it comes to motivating staff.

“Most of our employees are young and don’t always have the money they need for a motor cycle or a car. It’s forbidden that they go to a bank and pay a lot of interest,” said Domenic Steiner. Thermoplan loans the money they need and the staff pay the money back in regular interest-free instalments.

Enthusiastic employees

“This is not a one-way thing. Our employees are so enthusiastic and also look after each other. We get back what we give out,” he added.

And Domenic Steiner is proud that he has never had to fire anyone.

The philosophy of Thermoplan goes back to the three principles that he had when he founded the company: don’t take any outside money so that you can remain independent; treat your staff and customers as though they are a part of the family; and don’t become so big that you don’t know all your staff by name.

“Independence means everything to us. If either my wife or I have a new idea, we can make a decision from one day to the next. That means we are faster than all the companies with a big board of directors. Our board of directors is my wife and me,” he said.

The next project for Domenic and Esther Steiner and their Thermoplan family is a big challenge: to make a machine that revolutionises the way people enjoy tea.

“We want to produce a machine that makes excellent fresh tea as if it were made in China,” explained Domenic Steiner.

by Robert Brookes