Cafe Media: Creating a Community for Contemporary Acculturated Latinos

Founded by Julian Posada in 2008, Cafe Media was a Chicago-based media company targeting Latinos. The company vision was to create a modern-day community in which acculturated Latinos could come together and explore the issues shaping and defining the contemporary Latino lifestyle.

As the company neared the end of its second year in operation, Posada reflected on its annual revenues. The vast majority of revenue came from the sale of advertising space in the flagship platform, Café Magazine. Events sponsored by the company, which increased awareness of the magazine and generated subscribers for the e-newsletter, were profitable and well attended. However, the Café Digital properties (including an online version of the magazine and an e-newsletter) were a drain on cash flow--though investors believed these platforms were critical to the long-term success of the company. How could Posada balance the need for short-term revenue growth with the long-term goal of building a strong brand?