Economic Crunch: How Will It Affect Our Business?
I would love to hear what you think the repercussions of the economy will mean to the coffee industry.
I have my inclinations and will share when the discussion begins to roll.
I have my inclinations and will share when the discussion begins to roll.
Replies to This Discussion
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Permalink Reply by Richard Penney on
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That is a very good point, and the help may be already thin on the counter, If all work smart and enjoy what they are about there is a vast group of customers looking for a place to place their disposable incomes. Prep has always been the key to efficiency and good training emphasizes that. The Backbar that can keep track of orders, and make them on the fly is always worth their keep and occasional bonuses. Good, willing, and cheerful help is always a winning combination for customers and management.
Jason Haeger said:javaqueen said:
In an environment in which every product sold must be made by hand, it is important to acknowledge the fact that higher volume means higher labor cost.Hey Richard...
That's exactly what I was alluding to...
Make your coffee shop what the market will bare. Who says we have to charge $4 for a latte? What if you charged half of that, provided excellent product and great environment and service?
How busy would you be?
Sometimes volume sales are a better business plan than a few larger sales.
Not that you weren't already aware, or anything, but it wasn't addressed, and I think it ought to be mentioned.
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Permalink Reply by javaqueen on
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Exactly Brian!
I do believe that each one of our markets will have some similarity, but every neighborhood will be different.
It is imperative that we share what works in our neighborhoods and have discussions that stimulate creativity. A fabulous idea in Boston with a little twist to please your market in Portland could mean the keeping your business thriving.
I share your thoughts on reminding customers about the delicious coffee that you have always made. The affordable drink that may keep them coming in every day and having their occasional treat at your shop.
If you can... reckon back to the days of 4 score and 7 years ago... (yes, it was Lincoln who used this descriptor) there were coffee shops during the depression, a different kind in a different market.
So, united we stand and divided we fall...
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Hey, Richard...
You have a lot of experience behind you and you are one of our customers...
We would love to hear some more sage advice from you.
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Permalink Reply by Jason Dominy on
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I will sum it up like this. It will make the good ones better, and it will make the bad ones bye-bye. This is a pruning period for the coffee industry. I think it will only make us better, and there is ample opportunity for really good quality shops to thrive. (Except in our area right now, where people can't find gas, and are literally staying at home.)
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Again stressing the importance of neighborhhood coffee shops.
When the price of or availability of gas restricts driving, the neighborhood shops will see more foot traffic.
If people can walk to you, that is the market that may keep you alive. What do you know about your neighbors? Maybe its time for a survey of our clientele.
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Permalink Reply by Brady on
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Good thoughts.
Bel, sorry to hear the horrifying rate of pub closures... I hope that slows soon.
JQ, we have seen more walking traffic due to the gas "shortage" (at one point, only 20% of the gas stations in Charlotte had any gas. Those that have it see huge lines of cars waiting. It's a bit better now but will be weeks till we're normal). This was fine until it rained!
I do like the idea of finding ways to help your customers weather the times. I've been contemplating a couple of ideas, but have nothing really useful yet.
One thing I'm trying to find an artful and effective way to do is nudge customers toward less-expensive choices. Seems like many of our customers come in and get the large expensive drinks every day for a few weeks, then get their bank statements and disappear for a week or two. Pace yourselves, people! You'll get just as much enjoyment out of a medium, be able to come in a few more times, worry less about the calories (AND our margin is better to boot). I've contemplated dropping the large altogether or raising its price, but don't want to rock the boat too much.
We are also actively looking for a new, better travel mug. We do a small "in your mug" discount to encourage this, and it is a money-saver for the few customers that take advantage. I know how some feel about discounting, but we focus on the aspect of passing along our savings on the cup, not discounting the good stuff in it. I'd like to see it used more often. Maybe we should highlight this more.
JQ - thanks for starting this discussion and sharing your thoughts.
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Good morning all, FWW. Advice is worth what you pay for it, sometimes not even that! A college town in the great flyover is not downtown Portland. As I drink my second coffee drink of the day I am reading and enjoying all the varied ideas for increasing profitability. I noticed that one local, modern, cold looking shop, increased their business by putting cushions on the wooden chairs. People sat longer and had another drink. Another moved to larger brighter quarters and lost business due to a 'high school prom in a gym' feeling of their decor.
Watch your customers. Do they gather in one corner? Why? Air conditioning better there?..Light better?..seats more comfortable?..muzak less intrusive?..these insights can have a marked effect on your business. Watch the end of the counter ordering lines. Do people leave if the line is too long? Does one Barista have more business on their shift whenever it is? Does one day a week double the business of any other. Are your customers cognoscenti? or average joes in for a sit down and joe?
I've seen about three of these economic downturns and really don't like them. I find those that were of good service to their customers have been able to stay the course and grow after the unpleasantness.
I do know that the folks behind the counter ( ALL) have a tremendous effect on the bottom line. I see some of the Midwest folks leaving because they don't get the same money as a barista in LA. I see them quit without notice. I see some hopping from shop to shop because they have little work ethic and "are allowed to achieve in other areas" aka let go. I see one of the early coffee shops nearby that has owners that are really not caring about quality or the coffee they roast or its flavor, but they have a following of those that have never had a real quality drink from the coffee tradition.
In a few minutes I am driving 70 miles one way to spend a day and enjoy a few great drinks at shops that have been constantly great. When I stopped collecting machines for looks and started enjoying coffee, I had my first real espressi there and I go when i can afford the trip to recalibrate my palate.
See,.... only ask for what you really want. An old phart can go on for hours.
Cheers!
javaqueen said:Hey, Richard...
You have a lot of experience behind you and you are one of our customers... We would love to hear some more sage advice from you.
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Hey guys this is great!
Hey Brady... Thanks for the appreciative thanks... lol
Richard, your wisdom comes from the experience that we are looking for.
If we don't listen to the words of experience we have lost an eternity.
And if we don't listen to our customers, we will lose our business!
Don't stop sharing! In fact, perhaps we should all be encouraging our clients to share here.
Fabulous idea! So... shops with WiFi, what if we left this site up and encouraged our clients to submit suggestions to us?
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Just out of curiosity Richard... how did you find this site? Is your coffee shop leaving their computer up on this site?
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Permalink Reply by Matt Milletto on
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That is a cool idea. I did create a group simply for coffee enthusiasts, and want all people, no matter what there place in this industry, to use the site. Let me know how I can best facilitate a "consumers" section, and how we can gather helpful, REAL TIME, data from our customers.
- Matt
javaqueen said:Hey guys this is great!
Hey Brady... Thanks for the appreciative thanks... lol
Richard, your wisdom comes from the experience that we are looking for.
If we don't listen to the words of experience we have lost an eternity.
And if we don't listen to our customers, we will lose our business!
Don't stop sharing! In fact, perhaps we should all be encouraging our clients to share here.
Fabulous idea! So... shops with WiFi, what if we left this site up and encouraged our clients to submit suggestions to us?
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Permalink Reply by Bel Townsend on
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Have said somewhere else on here already, but I've been doing a lot of interviews and focus groups with coffee shop customers (mainly asking why they go to the coffee shops they do, and what they think high quality coffee is) - the results are really interesting, and probably not the sort of thing you would hear if coffee shop owners asked them directly, Will post when all is complete!
Matt Milletto said:That is a cool idea. I did create a group simply for coffee enthusiasts, and want all people, no matter what there place in this industry, to use the site. Let me know how I can best facilitate a "consumers" section, and how we can gather helpful, REAL TIME, data from our customers.
- Matt
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