This Traverse City Coffee Roaster Is Hiding Inside A Former Insane Asylum’s Laundry Room

A guy studying coffee farming in Chiapas, Mexico comes home to northern Michigan and starts selling beans out of a farmers market stall. Two decades later, that side hustle turns into one of the state’s few B Corp certified roasters, slinging small-batch coffee out of a converted laundry building on the grounds of a 19th-century psychiatric hospital. That’s the short version of how Higher Grounds Trading Co. ended up as one of Traverse City’s most talked-about coffee stops.

Founded in 2001 by Chris Treter, the company built its reputation on organic, fair trade and direct trade sourcing, meaning the relationships with farmers in places like Mexico, Sumatra and Ethiopia matter just as much as what ends up in your cup. The roasting happens on site five days a week, and the attached coffee bar is where locals and visitors alike line up for pour-overs, espresso drinks and the occasional pastry.

What to Try and Why It Works

Higher Grounds Trading Co.
© Higher Grounds Trading Co.

The espresso drinks get singled out again and again for being smooth and well balanced, without the bitterness or burnt edge you get at places that don’t pay attention to roast curves. Given the price point, the quality-to-cost ratio is something people genuinely comment on, which isn’t always the case at specialty coffee bars.

Because Higher Grounds roasts its own beans in-house, the lineup rotates and leans into single-origin offerings alongside house blends. If you’re the type who likes knowing exactly where your coffee came from and how the farmers were compensated, the staff can actually walk you through the sourcing story behind whatever’s in your cup that day.

Bagged beans are available to take home, so if you fall for a particular origin or roast while you’re there, you don’t have to say goodbye to it when you leave town. It’s a popular move for visitors who want a souvenir that isn’t a magnet or a t-shirt.

Sustainability Baked Into Everything

Higher Grounds operates as a certified B Corp, which means it’s been vetted on things like environmental impact, worker treatment and transparency, not just self-reported marketing language. The company also founded a nonprofit called On the Ground to help coffee-farming communities in Mexico gain access to clean water and education, a detail that comes up a lot once people learn about it.

On the day-to-day level, that sustainability mindset shows up in small ways too, like a to-go cup program built around donated and reused cups rather than defaulting to single-use paper and plastic. It’s the kind of detail that doesn’t show up on the menu board but tends to stick with people after they visit.

Atmosphere & Décor

The building itself is a conversation starter before you even order. Higher Grounds operates out of the Village at Grand Traverse Commons, a sprawling campus that was once the Traverse City State Hospital, and the coffee bar specifically occupies what used to be the asylum’s laundry facility. High ceilings and big windows flood the space with natural light, giving it an airy, almost industrial warehouse feel rather than anything clinical or spooky.

Exposed brick, large windows, and open sightlines give the space a lived-in, repurposed character that fits right in with the rest of the Commons, which has been slowly transformed into shops, restaurants and residences over the years. It’s a laid-back spot to post up with a laptop or a book, but it also gets a steady flow of foot traffic from people exploring the surrounding historic buildings and grounds.

Other Considerations

Higher Grounds Trading Co.
© Higher Grounds Trading Co.

Is it family-friendly? Yes, the coffee bar is casual and walk-in friendly, making it an easy stop whether you’re solo, with a group, or showing kids the historic grounds.

Can I buy the coffee to bring home? Yes, bagged whole bean and ground coffee is sold on site and through their website, so you can keep drinking your favorite roast long after your visit to Traverse City ends.

Is parking easy? The Village at Grand Traverse Commons has on-site parking, though it can fill up during peak visiting times given how many shops and restaurants share the same historic campus.

Is this just a coffee shop, or is there more to see? The coffee bar itself is compact, but it sits within the much larger Grand Traverse Commons complex, so plan to wander the grounds and other shops while you’re in the area.

Higher Grounds Trading Co.
© Higher Grounds Trading Co.

Higher Grounds Trading Co.
📍 806 Red Dr Suite 150, Traverse City, MI 49684
Website: https://www.highergroundstrading.com/

Chloe Moreau
About the Author:

Chloe Moreau

Chloe is a 38-year-old maritime historian who lives near the Straits of Mackinac. She spent her childhood on the water and has a deep respect for the power and unpredictability of the Great Lakes. Her writing often centers on the lighthouses, shipwrecks, and the rugged, isolated beauty of the Upper Peninsula. Chloe is an advocate for “dark sky” tourism and spends her winter nights documenting the Aurora Borealis from remote shorelines. She prefers the crisp, biting air of the north to the humid summers of the southern counties.

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