When Wes and Diane Herman realized how much money their four teenage children were spending of their own funds monthly on coffee (at least $150 each), they had a parenting "ah-ha" moment. Why not use their home-schooled kids' passion for caffeine to teach valuable lessons in business and personal finances?

During the height of the coffee-shop trend, Wes Herman had traveled the world selling products to coffee companies-and in the process, he learned the "ins and outs" of an industry at the forefront of trends in the country.

Knowledge, passion and the need for fiscal responsibility combined and The Woods Coffee was born.

The Woods is known around town for its drink sizes named after trees and Wes Herman is most certainly a Redwood: tall, well grounded and certain to bring smiles to customers' faces.

He says the business has truly been a family experience. His daughter Natalie came up with the name, and his son Taylor came up with the logo. Currently, three of the four children (plus one son-in-law) work for the company.

"The really fun part is, as a family, we love what we're doing," Herman beams.

The first shop opened in Lynden in 2002. The following seven years have shown amazing growth and opportunity for The Woods, including four stores in Bellingham, three in Lynden, one in Ferndale and a new location in Birch Bay.

In fact, Herman says (with a well deserved hint of pride), The Woods Coffee has the most retail stores of any business in the county, not just of coffee shops.

Despite the national economic downturn, The Woods is thriving. Starbucks, he says, has experienced a 9 percent decrease in sales, while The Woods has experienced double digit growth.

These numbers just supply more proof to Herman's theory that The Woods can compete head-to-head with Starbucks, the best example of which is The Woods' location a block away from Starbucks on Railroad Avenue.

That location, he says, was chosen intentionally because of its closeness to Starbucks. Originally, he wanted the location where Red Berry is.

"They're Goliath, we're David," Herman says. "Only we're not here to try to take them down. We are an alternative to what they offer."

Herman is quick to point out the many features that distinguish the local company from the mega-company and appeal more to Whatcom County residents-free wireless Internet, free refills on drip coffee, a more comfortable, warm and inviting atmosphere, lower prices and a "green friendly" business approach to its products and store design and construction that puts The Woods in a league of its own.

Herman is particularly proud to get away from Starbucks' "cookie cutter" approach to store design by using local artisans to create an environment that is truly Whatcom County. So much of Whatcom County is incorporated into The Woods that Herman has to search to pinpoint something that is not. As he scans the décor of the Railroad Avenue location, this proves to be a difficult task.

The light fixtures, he says, are made and contributed by local artisans, as is the large sanded wooden beam at one end of the café.

"I had a local guy make that," Herman recounts. "He had a log that had fallen so he stripped it all down and detailed it, sand blasted it. It's kind of a fun piece."

Like a proud father, he continues without hesitation-the stainless steel and copper fixtures are made from local materials, and the other beams holding the building up are originals from when the café used to be The Malt Shop.

Even the design of the cup and The Woods logo are inspired by Whatcom County because trees are such an integral part of the community.

His eyes light up as he switches thoughts.

"A really cool thing that's not from Whatcom County is the coffee that comes from Kenya," Herman says.

The Woods returns a portion of the profits from the sales of this coffee to a local Kenyan school for much needed school supplies.

Recently, to say "thank you" to The Woods, the students sent video with a banner saying "The Woods Coffee" signed by all the students.

"So here's all these students and it's a hand-held camera," Herman says. "The camera pans around to the side, trying to catch everybody and as it pans around there's two students in the back and they're dancing and going to town. It was just so awesome."

The overriding "take away" from talking with Herman is that he and his family hope for The Woods to make a difference in the community, starting with how their stores reach out to its customers.

The friendly, personal service and interaction between the barista and the customer is what makes The Woods special, says Molly McCormack, the manager at The Woods on Railroad Avenue.

McCormack has a degree in business management. She explored many career options, but she loves the coffee industry and keeps coming back to it, so she decided The Woods was a good fit for her.

McCormack says she can tell the difference between The Woods and other coffee shops she has worked at from the perspective of both a customer and an employee. "The Woods is more about an experience," she says.

While she understands the appeal of other coffee shops like Starbucks-slightly bigger menus, more retail products and a logo and name that people have become accustomed to-once they come to The Woods, McCormack says they find something that will keep them coming back.

Twenty-year-old Andrea Daisley is proof.

Daisley, who used to be a barista, likes to explore coffee shops.

She says she tries to go to new ones every time she goes unless there is something she finds special about one. During the summer months, Daisley sits out in the sun by the water with her Americano at the Boulevard Park location once or twice a week.

"I haven't found one quite like this before," Daisley gushes enthusiastically. "The Woods is one of the only places I can think of where I can sit this close to the water." The charm isn't lost during the chilly winter months either. Instead of sitting outside, she moves to the upper level of the shop and reads her book there.

The Boulevard Park location, Herman says, is now being lauded nationally as one of finest coffee shops in the country because of its uniqueness.

Initial community reaction, however, was critical and vocal in certain circles. Some critics even went so far as to break the windows of the building. What many did not understand about the location, Herman says, is the city did not have funds to renovate the building. It was an eye-sore in one of the area's most beautiful parks.

In stepped The Woods. Herman recalls the day The Woods opened in Boulevard Park. The public's response was what the Hermans had hoped for. The transformation wasn't universal, of course, but most nay-sayers switched sides and now appreciate how wonderful the shop really is. A year and a half later it is one of the most visited coffee shops in the county.

"Bellingham has a huge focus on keeping things local," says McCormack.

That focus is part of the reason The Woods has found its niche in Whatcom County, she believes. The Woods does not advertise. Instead, they raise their community profile in more direct and positive ways by supporting local events and charities, including the yearly multiple sclerosis walk.

"We felt it was our responsibility to give back to the community that we operate in," Herman says with an intensity that compels belief. "Being locally owned, we are able to listen to our customers and adjust to support our community in ways that no national company can."

The Woods' support for the community this summer includes sponsoring a summer concert series. He cautions not to expect only the stereo-typical coffee shop, acoustic guitar music. The Woods will have a full sound board and stage and will be ready for a variety of types of music, especially from local musicians.

Herman's announcement is certain to put smiles on the faces of The Woods' patrons. Make that a double Redwood iced mocha, please!