Many small businesses view artificial intelligence (AI) as a complex tool reserved for massive corporations, but practical applications are helping independent companies streamline operations and accelerate growth. On the latest episode of Business Trends Today, we’re joined by Hrag Kalebjian, Owner of Henry’s House of Coffee and Member of the U.S. Chamber of Commerce’s Small Business Council, who shares how his San Francisco roastery uses AI to boost online sales, enhance operational efficiency, and maintain customer connection.
According to Kalebjian, he grew up around the family business, which his father founded in 1965, but initially pursued a career in corporate finance. In 2012, as his father contemplated retirement, Kalebjian returned to evaluate the business and build an e-commerce channel from scratch. What began as a traditional brick-and-mortar storefront expanding into digital sales has evolved into a nationwide operation, with e-commerce growing from less than 5% of overall revenue to nearly 50% today.
Streamlining digital marketingÂ
To build a loyal online community, Kalebjian says he uses AI automation to power his weekly customer newsletter, The Sunday Pour. The system scans the web for relevant coffee industry news every Monday, allowing him to select key articles that the tool rewrites in his personal style and schedules for distribution.
Beyond marketing, Kalebjian relies on AI to solve hands-on operational challenges within the shop, such as:
- Eliminating coffee static: Using AI guidance, Kalebjian built a custom microcontroller without prior electronics experience. The mini-computer detects coffee in the grinder and dispenses a brief mist of water to eliminate static electricity, ensuring clean grounds.
- Accelerating packaging workflows: Working with generative AI tools, the roastery developed a pneumatic system to handle high-volume holiday packaging, dropping the bag-filling process from 20 seconds to 8 seconds per unit.
Rather than replacing workers, Kalebjian notes that he uses AI to help existing staff achieve higher output and learn new skill sets. While automated systems take over repetitive tasks and allow team members to produce more in less time while preserving employment, he encourages his staff to experiment with AI during dedicated team sessions, treating the technology as an essential workplace tool.
"Generally, what I find is with AI, you get more bang for your buck for your employees... For me specifically, I haven't laid anybody off. In fact, I've just got them to be more productive."
For small business owners hesitant to adopt new systems, Kalebjian recommends replacing standard mobile web browsers with AI conversational apps to build daily familiarity. He emphasizes that failing to engage with emerging tools puts small enterprises at risk of falling behind as market standards shift.
Honoring traditionÂ
While large corporate coffee chains focus on retail expansion, Henry’s House of Coffee focuses on customer relationships. Kalebjian positions his marketing around family heritage, Armenian coffee roasting traditions, and behind-the-scenes stories rather than basic product promotions. Treating customers as part of the broader family community has allowed the brand to ship roasted coffee across the United States, Canada, and the UK without relying on physical store expansion or franchising.
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