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Mellelo to open roasting, coffeehouse By DAVID PRESZLER Sal Mellelo's coffee kingdom is growing and its latest expansion will move the scent of roasting beans out of downtown Medford. Mellelo expects to break ground this month on a 2,600-square-foot roasting room, drive-through and coffeehouse on Laer Way behind Costco that he plans to open by June 1. The Tuscan-style building will house two Probat roasters -- the one from Mellelo's Sixth Street store and a new, larger roaster that he's already bought. The new machine, which will roast three times as many beans as the older one, will help Mellelo keep pace with increasing demand for his coffee. "Our wholesale business is going crazy right now," says Mellelo, who supplies coffee to about 70 restaurants and other coffee shops in addition to serving and selling it at his two Medford stores. About half of Mellelo's wholesale customers are in the Rogue Valley. The others are scattered around Oregon and California, including some in Portland and the San Francisco Bay area. "In the last three years, our business has grown 72 percent," he says. "We've been told we're the most expensive but it costs more because it's worth it." Mellelo and longtime roaster Angelo Marrone will continue to roast all the beans. Wholesale customers can buy 38 varietals and 18 blends, all roasted to order. When Mellelo purchased the land near the corner of Laer and Aviation ways in 1997, he intended it to house the roasters and be the home base for the espresso machine repair portion of his business. He didn't plan to make it a third Medford coffeehouse. "As we spoke to more people, they said, `You really need to have a place for people to drink coffee here,"' he says. Mellelo estimates that 2,000 people work in and around the Crater Lake Plaza shopping center and might like a cup of java on a break. He also said the area has a high traffic count and good visibility. "The one thing that I know about this business is it's very, very dependent on location," Mellelo says. "People are going to drink this product wherever it's convenient." The new coffeehouse's design will somewhat resemble that of his West Main Street store. It will seat 54 people, half a dozen more than the West Main location. It also will have a fireplace, outdoor seating and more retail space than the other two Medford stores. "The whole idea of that facility is that it'll be a beautiful place that will showcase our product," Mellelo says. The new store will be the first Espresso Mellelo store to feature drive-thru service, a convenience other coffee companies have had success with around the Rogue Valley. Mellelo says he is planning to open a fourth store in Medford later this year, probably in the downtown area. He declined to elaborate because he doesn't have a lease in place. While he's adding locations in Medford, Mellelo has sold his store in the Pear Tree Factory Stores to Bert and Peggy Ziessau, the shopping center's former owners. Mellelo said his desire to focus on other portions of his business drove the sale, which closed in January. The shop is now called Mello Coffee and still features Mellelo's coffee. Today's Business Index Mail Tribune Copyright � The Mail Tribune 1999, Medford, Oregon USA