Family-owned Bones Coffee Co. has grown from a Cape Coral spare-bedroom startup in 2016 into a rapidly expanding manufacturing and wholesale operation. Now, Cape officials are working to keep the company local as it plans a $27.3 million, 100,000-square-foot expansion of its headquarters and national operations hub.
On Dec. 10, Cape Coral City Council approved a $2.73 million economic incentive package — about 10% of the project cost — for Bones to build a new headquarters at 2621 SW Pine Island Road. The facility would house manufacturing, distribution and administrative operations. The new incentive sweetens a package approved in August that covered about 7.9% of the project, reflecting updated estimates that include added executive office space.
The city’s offer is pending approval from Bones’ independent board of directors, established to help the company scale as it expands, said co-founder and CEO Travis Rule. Board members listed on the company’s website include John B. Richards, former president of North American operations for Starbucks.
Cape Coral City Council discusses an updated incentive package for Bones Coffee Co. on Dec. 10. Council approved the $2.73 million package in a 7–1 vote.
Evan Williams
Bones also is weighing a headquarters move to Fort Myers, where warehouse leasing costs per square foot may be lower. Cape staff said the updated incentive package was designed to stay competitive with Fort Myers.
“The plan was always to try to stay here (in Cape Coral),” Rule said. “Our goal is to make Bones a destination so that we’ll offer tours and tastings and, if allowed, we’ll have events there, potentially even concerts out front.
The expansion is expected to create 55 new direct jobs and retain the company’s 75 existing Cape Coral positions. Bones’ average wage of $39.46 per hour is roughly 40% above the Lee County average of $28.16.
Bones plans to build distribution sites across the country and potentially open another roastery. After selling coffee as a home-based business, the company initially focused on e-commerce before expanding into retail sales at stores, such as Walmart, Target, Kroger and Publix. Coffeehouses also are under consideration.
Bones Coffee Co. co-founder and CEO Travis Rule says the company hopes to keep its headquarters in Cape Coral as it evaluates expansion options. The City Council approved a $2.73 million incentive package to support the project.
Bones Coffee Co.
City Council approved the revised incentive package in a 7–1 vote, with Mayor John Gunter dissenting. He argued that the package should remain at 7.9% of the project cost, which would have added about $120,000 to the original offer rather than the approved increase of $689,602.
Cape staff pointed to rules allowing incentives up to 20% of project costs and said Bones’ employment levels, wages and long-term growth outlook make it an ideal economic development partner. They noted that the headquarters project and ongoing operations are expected to generate tax revenue.
Bones Coffee Co. has grown from a Cape Coral home-based startup into a national brand with products sold at major retailers. The company plans a headquarters expansion that would add 55 jobs.
Evan Williams
“We felt that it ticks every single one of the goals in terms of what we’re trying to accomplish in growing the commercial base of Cape Coral,” Economic Development Manager Sharon Woodberry said. “It would make Cape Coral a national branding hub for a company that we believe is only going to continue to grow and have a more significant presence.”
The incentive package covers the cost of developing the vacant 4.8-acre site. It includes a $562,500 site improvement grant; up to $387,550 in ad valorem tax reimbursements over 10 years; a $1,689,602 direct equipment funding grant; $90,000 for a lease buyout funding grant; and up to $175,000 in deferred impact fees.