“I never thought I’d be running a coffee shop or any type of business in Lake City, but things are going well,” said Aspen Ellis, 27, who opened the business in February 2024 at the east end of Main Street/Iowa Highway 175.

Some customers stop by for a cup of black coffee, while others ask for “that caramel thing.” Ellis and her team know this means the Caramel Macchiato, a coffeehouse favorite with sweetened milk on the bottom topped with espresso and served hot or iced.

“Some men simply ask, ‘What does my wife get?'” Ellis said.

A question like that is no problem for Ellis and her eight part-time employees. One of the perks of running a small business in a small town is the opportunity to connect with customers, said Ellis, who grew up in Lake City and graduated from South Central Calhoun High School in 2017.

-Messenger photo by Darcy Doughtery Maulsby
While Caramel Macchiato and other coffees are customer favorites, the Raccoon River Coffeehouse in Lake City also serves plenty of non-coffee options, including hot chocolate, various teas, chai latte, matcha latte, lemonade, fruit smoothies and more.

A driver with the Spee-Dee Delivery Service typically stops by the Raccoon River Coffeehouse a few times a week for hot chocolate. Local high school students drop by for homemade cake pops. Retirees enjoy gathering at the table in the coffee shop to savor their favorite beverage and catch up on the local news.

Some customers like to check out the coffee shop’s special flavors of the month. In April, those included Honey Bee Latte (a blend of honey, vanilla and cinnamon flavors), White Mocha Raspberry and the Pina Colada Chiller.

“The flavors of the month are really popular for coffees,” Ellis said.

Ellis brings a diverse array of skills to her role as a business owner. After graduating from high school, she served in the U.S. Army for four and a half years as a gunner and team leader. She completed two tours of duty in Europe (including Germany) and attained the rank of corporal before returning to west-central Iowa.

Ellis managed the Scooter’s Coffee kiosk in Carroll before managing the JRG Livestock & Pet Supply business in Lake City. She worked at that store for nine months before the company closed its Lake City branch. The building, which her uncle Dave Smith co-owned, needed a new tenant.

“I started thinking about opening my own coffee shop and thought, ‘Why not Lake City?'” Ellis said. “I think it would work here.”

Starting the week of Thanksgiving 2023, Ellis and her older brother, Levi, spent the next few months painting the store’s interior and remodeling the space to suit the new coffeehouse.

“I wanted to create a welcoming, laid-back, comfortable environment,” she said.

While aesthetics are important, so is business acumen.

“Working at Scooter’s helped me learn how to run a business and manage the money,” Ellis said.

She desired more flexibility, though, than a franchise could offer.

“I wanted the option to expand the menu and offer products that customers are asking for, or offer new things they might like,” Ellis said. “I also want to keep things affordable.”

The Raccoon River Coffeehouse crew can duplicate favorite flavors from nationally-known coffeehouse chains. High-quality ingredients are essential.

“I did a lot of research to find the right supplier,” said Ellis, who chose Council Oak Supply out of Sioux City, which provides equipment and sources high-quality coffee beans from Peru and Guatemala.

Not a coffee drinker? Raccoon River Coffeehouse offers plenty of non-coffee options, including hot chocolate, various teas, chai latte, matcha latte (a tea-based beverage), lemonade, fruit smoothies and more. There are even menu options for the “little rascals,” including lemonade, chocolate milk, blenders (sweetened frozen drinks with any of Raccoon River Coffeehouse’s flavors) and fruit smoothies (including mango, strawberry and wild berry).

Raccoon River Coffeehouse continues to add new products. The shop offers Red Bull energy drinks, as well as Lotus energy drinks. Lotus products contain plant-based ingredients and are considered a healthier alternative to traditional energy drinks.

“The Lotus drinks have no added dyes and are full of vitamins,” Ellis said.

A drive-up window at the Raccoon River Coffeehouse makes it convenient for customers to grab their favorite beverage when they’re on the go.

“The drive-up was my Uncle Dave’s idea, and it has worked great,” Ellis said.

Raccoon River Coffeehouse is open seven days a week, from 6 a.m. to 1 p.m.

Many customers enjoy the baked goods menu, which changes with the season.

Options can include fresh-baked peanut butter cookies, brownies, protein balls, blueberry muffins and more. When Ellis baked four and a half dozen of her family’s caramel rolls, the batch sold out by 10:30 a.m. that day.

To keep customers coming back, Ellis offers punch cards–buy nine drinks, and the 10th one is on Raccoon River Coffeehouse. She also encourages customers to follow the Raccoon River Coffeehouse on social media, including Facebook, to see the latest specials.

When customers drop by, they can also browse the expanded section of gift items at the coffeehouse, including jewelry, books, toys for children, scented candles, and more.

“I try to find products that are made in Iowa or have an Iowa connection,” Ellis said.

It’s fun to serve a wide range of customers, from high school students to retirees, Ellis said. “I’ve enjoyed this so much.”