Honestly I think it's a location thing. Valencia Street is a place where interesting businesses would exist..I've always been intrigued at the kind of businesses I see when I visit friends in the area.
From personal experience (I've been in the market for coffee shop businesses of all types in Los Angeles for a couple years - from family owned tiny mom and pop stores to franchises), it's all about the location unless you have a lot of hype and if you have both even better. Anyone can start a coffee shop and stock their display cases with local/well known bakeries and coffee providers, but you need all kinds of customers (both the people who occupy a table with only a $1 cup of coffee all day long and the people who rush in and out, both something you can't get if you are badly-situated) and not just a little something extra. The latter is typically a way to get people to come to your store rather than another close by, or a little perk for your customers so they'll return later.
Plus, there's always Starbucks and Coffee Bean and Peet's to deal with...sigh.
But like I said, there are plenty of awful cafes on Valencia. I guess I conflated financial success and coolness: Mission Creek, one block down Valencia from Ritual, seems to get along just fine but it's a terribly dull place to go. The coffee there is just like anyone else's; the food is mediocre; the atmosphere is deathly silent. They've taken prime real estate and turned it into an office for people with no office -- and not a fun one. It's literally no more social than sitting in your living room, and the coffee and food are on par with what you could make for yourself. And the entire city is full of these decrepit little places that can only afford to offer mediocrity, because better food wouldn't necessarily bring in profits, and cranking up the music might drive away the customers who buy the most product. In the midst of all these mediocrity machines, Ritual and Four Barrel stand out because of what they've done with the same opportunities.
Okay, they do have one big real estate advantage: they bought giant spaces with room for a roaster. But is there any other way a cafe could serve something special that still attracts the high-profit foot traffic that turns Ritual and Four Barrel into community centers? I'd like to hope so.
From personal experience (I've been in the market for coffee shop businesses of all types in Los Angeles for a couple years - from family owned tiny mom and pop stores to franchises), it's all about the location unless you have a lot of hype and if you have both even better. Anyone can start a coffee shop and stock their display cases with local/well known bakeries and coffee providers, but you need all kinds of customers (both the people who occupy a table with only a $1 cup of coffee all day long and the people who rush in and out, both something you can't get if you are badly-situated) and not just a little something extra. The latter is typically a way to get people to come to your store rather than another close by, or a little perk for your customers so they'll return later.
Plus, there's always Starbucks and Coffee Bean and Peet's to deal with...sigh.