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Permalink Reply by Aaron B. on February 17, 2009 at 12:28pm

As someone who works for a company that supplies baked goods to coffee shops, I can see that the decline has been hard hitting, at least around here. In the month of January alone, 3!!!! coffee shops that we supply treats to went out of business. Discussions with 2 of the owners basically boiled down to the same thing: Their 'daily' customers had become once or twice/week, and the occasional drop-bys had slowed considerably. Sales across the board (of coffee, sandwiches, ANYTHING) had dropped considerably, and it did them in.

All 3 were smaller, independent shops. A very difficult month overall.

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Permalink Reply by Kris Wood @StAli on February 19, 2009 at 4:21am

there may be a slight decline in coffee sales overall but in the long run if you are a strong venue your coffee sales will stay in the positive area. the food may be a diferent story though, if you are a cafe that sells food of the higher quality and subsiquently pricy kind then it only goes with economic trend that the spend of the local punter may decline.
i have thought of suggesting a lower priced price menu but will see how the recession effects St Ali

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Permalink Reply by Kris Wood @StAli on February 19, 2009 at 4:24am

We inparticular have not experienced a decline as yet but would love to hear from people who have and how they have dealt with the issue
Look forward to all suggestions

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Permalink Reply by Daphne on February 21, 2009 at 2:12pm

I haven't seen a decrease in my business yet. Sales are strong! I recently read an article from an MSN financial analyst who said that coffee maybe the one thing people aren't willing to give up. Sort of like "I deserve something and this "something" being coffee, is still affordable everyday. I own my business and property free and clear and am debt free so I can ride the downward wave as long as sales stay strong. I might add that my location (in a very small town) has a lot to do with my strong sales. The economic highs and lows don't affect us out here until it gets really dire which it very well might do.

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Permalink Reply by Pete Esanbock on February 21, 2009 at 5:33pm

I am just a small mini micro roaster who sells online only. I do sell green coffee also. My sales have skyrocketed!! Wholesale orders for green and roasted just keep climbing! I have ordered a new roaster and have plans to get into a bigger building by summers end. Mainly for green coffee storage. I am a very diverse web site selling niche glass coffee items like Chemex and Yama. Home coffee roasters, home and commercial espresso machines and I am also an Urnex distributor and a Bunn distributor. Bunn sales are up! I just sold a $950 home espresso machine today!

Economic slowdown? Not for my business anyway!

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Permalink Reply by John Berkness on February 22, 2009 at 11:15am

I'm glad to see a topic like this. in true depression tradition our shop is packed with people shit talking the government. thoughts of dissent are high and so are sales. i can see why the church of england banned coffee due to dissent.

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Permalink Reply by Mike Spence on February 24, 2009 at 8:53am

Here is an update: Coffee Fest Chicago was a great show for us. Same number of new clients interested as in 2007. I spoke to a number of other exhibitors at the show who reported the same thing.

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Permalink Reply by Matt Milletto on February 24, 2009 at 10:26am

I agree Mike. I feel that the Chicago show this last weekend was as busy, if not busier than Coffee Fest Seattle. Encouraging to say the least. I have though heard from friends who have attended other shows (NCA, restaurant shows, etc.) that attendance has been down.

Mike Spence said:

Here is an update: Coffee Fest Chicago was a great show for us. Same number of new clients interested as in 2007. I spoke to a number of other exhibitors at the show who reported the same thing.

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Permalink Reply by Dave_G on February 28, 2009 at 12:56am

in Australia we haven't been hit as hard as others...
..In saying that, recently our National Treasurer went on TV to tell all Aussies to stop eating out and buying coffee (doush bag)... He then told people to expect a 10-15% downturn in the hospitality industry.....

..... So, being a cafe owner, I pooped myself... In short though, I've only seen a 4.5% downturn. Nothing to be too upset about and every reason to increase my market share..

The old saying is ; "Buy when everyone is selling and sell when everyone is buying". I'm out there promoting my business and increasing my market share daily....

Dave

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Permalink Reply by John Cunningham on March 6, 2009 at 1:47pm

on the roaster end i've noticed that our clients are doing slightly less coffee sales thus ordering slightly less coffee. however it seems to me that now is the perfect time to step up marketing, service, and try to grow so that when things pick back up we'll be in a good position. mostly i feel that rather than cutting costs by reducing quality or service we have been trying to be more aware of the little things such as unplugging electronics at the end of the day such as the packaging doser and heat sealer. also being more aware of turning off lights when leaving a room. and consolidating roasting to as few days out of the week as possible. by being more efficient and cutting unnecessary costs i think anyone can save some money to help weather the storm.

i don't know if that's what you're looking for but it's just some thoughts.

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Permalink Reply by Mike McGinness on March 10, 2009 at 8:26pm

Ran some number for Jan&Feb, 09 down 19.7% compared to 08. Primarily down in back of house, ie food sales. Yesterday was one of the worst days in a year. On the other hand today was the best day in a year more than double the gross sales of yesterday, go figure. No rhyme or reason to day of the week either.

As far as looking for lessor priced menus items I've been working on some kicked up Daily Specials that actually cost a couple bucks more than our usual hand crafted quality lunch fair. Just started last Thursday, the upscale higher priced Specials are selling well. Like Smoked Wild Alaska Salmon and Tillamook Sharp Cheddar panini, made up enough for 8 and an hour after posting on the board at 1:30pm 6 gone so made enough for another 8. Didn't sell out that day but did the next. And since switching to real roast turkey breast, eye of round roast beef etc instead of processed crap meats while regulars aren't as regular these days due to the economy, keep gaining new people from word of mouth on the quality sandwiches, quiches and scratch soups we do. Part of today's upswing compared to yesterday I believe was the word spreading of the Rueben on Marbled Rye Special that was yesterday and today.

My belief to weather the storm is focusing on quality not just in coffee but everything, not lowering prices. Oh sure I've kept my prices as low as possible and also recently began offering posted 10% discount to: Armed Forces, Law Enforcement & Fire Fighers, (with a note of thanks) plus Seniors over 55, and students. Good feedback on that. Will giving away 10% when behind on bills and barely making it help the bottom line? I believe it will in the long run, pay it forward. Give all you can and it'll come back. Give the best service, the best value, the best quality until it hurts, and keep smiling. Somehow the doors are still open and haven't missed a payroll (except mine of course) in my short 1&1/2 year Head Bean tenure...





Kris Wood @StAli said:

there may be a slight decline in coffee sales overall but in the long run if you are a strong venue your coffee sales will stay in the positive area. the food may be a diferent story though, if you are a cafe that sells food of the higher quality and subsiquently pricy kind then it only goes with economic trend that the spend of the local punter may decline.
i have thought of suggesting a lower priced price menu but will see how the recession effects St Ali

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Permalink Reply by Jon Mitchell on March 11, 2009 at 7:08am

Great idea javaqueen. Or if your wifi has a splash page that requires users to accept a Terms of Service agreement, maybe the next screen can be a "suggestions" box or redirected immediately to a group on BaristaExchange.... I'm sure Matt would love that. ;-)

javaqueen said:

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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