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 Matt Milletto on
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Can we please keep this topic relevant, this is not a forum to spout out uncredited speculations based on political bias.
I don't want to close this thread down, as there is a lot of good info, but politics and religion based discussions can be offensive to many in a public form.
If you have any questions please refer to the Acceptable Use Policy
Thank you,
Matt
Kathy Fadorsen said:You can not talk about the ecomony with out getting politics involed.This mess started with liberal thinking that every one no matter haw hard they work or don't work deserve the same things that I enjoy because it is owed to them. Well I have to say I get up every day at 3:45 in the morning and spend till sometimes 9:00 at night working my coffee shop. No one ever handed me anything. I don't except them too. But I will say if Obama gets in office I will most likley have to get rid of 3 or 4 employees to pay the extra taxes I will be required to pay.
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Permalink Reply by Andy Newbom on
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we are for sure seeing a large increase in whole bean sales at most of our wholesale customers as well as our cafe. Numbers are not down but are actually up but growth is coming from bean sales.
was at an electrocnis store the other day. while I was walking in the door I saw FOUR 64" and larger flat panel tvs rolling out the door to different people.
so people are still buying monster tvs even though the whole economy is suddenly dead because gas is $3.70 a gallon?
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Permalink Reply by javaqueen on
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I completely agree Andy... the economy is not dead, people are still spending money, but they are being more cautious about how and where they spend it. The big screen TVs make sense to people who used to go out to movies several times a month
How much is dinner and a movie for two people, I don't even know anymore. So, a big screen lets them stay home and still be entertained.
And your increased coffee bean sales reflect what we have seen as well. People are still spending money, but what they spend it on may be different.
What other changes are you guys seeing in your sales...?
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Permalink Reply by Alun Evans on
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I would still go back to my comment at the begnning of this thread- I think coffee in the last great depression was one of the sectors that rode out the storm- coffee being so much a part of peoples lives, it can almost be seen as an affordable luxury (using the term losely). I like Andy's comments about the 4 big TV's going out of the shop, but from an outsiders view (ie: from someone living outside of the USA) this is perhaps a symptom of the problem in general- I bet the TV's were all being brought on credit...
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Permalink Reply by Mellisa on
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My coffee shop/cafe is in a very small (population 750) Midwest town. I'm seeing some changes here; not all are negative.
For coffees, more drip is being sold. I can't keep the airpots full. However, Lattes & caps are almost history. A few devotees remain.
More beans are being sold to the customer. Many more!
For meals, the heartier and simpler the better. They want a special. A special translates into one featured menu item which is about 25 cents off, but they sell like hot cakes, because they are "on sale".
Likewise, on my slowest day (Usually Mondays) I sell "a cup of Joe" (drip) for 25 cents with any meal (not a special that day). Man, they are flocking in.
As long as you keep them coming in the door, even if you are selling less volume for less money per, then the habit is there and they still have a place to come to vent and express themselves about the state of things. That is SO important to my customers. They are miffed if I don't personally speak with them (if a crowd descends) and they love home baked pies and cookies. Its COMFORT.... and we get the distinct pleasure of dishing it out on a daily basis. A much better line of work than the accountant next door..... Comfort them and they will keep coming. Just my two cents (hey, can I get a discount?)
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Yeah Allun, I believe you are right. Those of us who live within our means are worried about what the economy is doing, but we are not afraid of losing our homes... yet.
Mellisa, I love what you shared! It is true that people are looking for that comfort zone as well as a bargain.
Keep up the good work! You are a survivor ... keep making those pies, we'll need them. Do you ship? :-)
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Coffee is a comfort food, at least to me... and it seems that our society is looking for some comfort in a less than comfortable financial outlook.
Mellisa is making homemade pies and slicing the price of her coffee on slow days to continue to give her customers comfort and in turn grow her business.
What other tactics are you guys using?
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I would like to add as a footnote that since this topic was started by Javaqueen on 25th September, things have moved at a breakneck speed economically. Although not much has changed for me, I have received 6 emails over this period selling part or all of roasting plants and/or businesses. Why I mention this is that in the previous 5 years I have received not 1 single email such as this... so there must be something in it. All the emails have com from brokers, dealers and individuals in the USA. Perhaps, but not conclusively, a sign things are biting... although these sales may be the result of individuals being over commited in other areas (home motgages etc) rather than being indicitive of the coffee segment itself.
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Permalink Reply by Jason Haeger on
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Matt Milletto said:
Thanks, Matt.Can we please keep this topic relevant, this is not a forum to spout out uncredited speculations based on political bias.
I don't want to close this thread down, as there is a lot of good info, but politics and religion based discussions can be offensive to many in a public form.
If you have any questions please refer to the Acceptable Use Policy
Thank you,
Matt
Kathy Fadorsen said:You can not talk about the ecomony with out getting politics involed.This mess started with liberal thinking that every one no matter haw hard they work or don't work deserve the same things that I enjoy because it is owed to them. Well I have to say I get up every day at 3:45 in the morning and spend till sometimes 9:00 at night working my coffee shop. No one ever handed me anything. I don't except them too. But I will say if Obama gets in office I will most likley have to get rid of 3 or 4 employees to pay the extra taxes I will be required to pay.
I tried once earlier, and that post may have been a direct response to it.
http://www.baristaexchange.com/xn/detail/1688216:Comment:165438
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Alun Evans said:I would like to add as a footnote that since this topic was started by Javaqueen on 25th September, things have moved at a breakneck speed economically. Although not much has changed for me, I have received 6 emails over this period selling part or all of roasting plants and/or businesses. Why I mention this is that in the previous 5 years I have received not 1 single email such as this... so there must be something in it. All the emails have com from brokers, dealers and individuals in the USA. Perhaps, but not conclusively, a sign things are biting... although these sales may be the result of individuals being over commited in other areas (home motgages etc) rather than being indicitive of the coffee segment itself.
Holy Jeepers... no kidding about the changes in the world economy since I originally posted the question.
Has anyone else seen any signs like Alun... or perhaps you can see some of the silver lining to this cloud cover?
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javaqueen said:
I wouldn't read into it too much.Alun Evans said:I would like to add as a footnote that since this topic was started by Javaqueen on 25th September, things have moved at a breakneck speed economically. Although not much has changed for me, I have received 6 emails over this period selling part or all of roasting plants and/or businesses. Why I mention this is that in the previous 5 years I have received not 1 single email such as this... so there must be something in it. All the emails have com from brokers, dealers and individuals in the USA. Perhaps, but not conclusively, a sign things are biting... although these sales may be the result of individuals being over commited in other areas (home motgages etc) rather than being indicitive of the coffee segment itself.
Holy Jeepers... no kidding about the changes in the world economy since I originally posted the question.
Has anyone else seen any signs like Alun... or perhaps you can see some of the silver lining to this cloud cover?
There are constantly businesses opening and closing, and they tend to come in waves.
This trend may have been exacerbated by the economic times, but I seriously doubt that it was caused by it directly. It might just be enough to push those that were hanging by a thread fully over the edge.
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Permalink Reply by Mike Spence on
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This post about specials reminded me of something my customer service department is seeing. Our customers that offer more food (lunch etc) are calling to see how specials can be done. The trend for some of our customers is in how they can package a drink and a pastry or even lunch items together in some sort of combo price to help boost sales (they can then track those though the pos).
I think Mellisa nails it here with the fact that people are looking for both a "deal" and that personal touch. If customers are going to "splurge" on a drink - they want to feel good about it.
Mellisa said:My coffee shop/cafe is in a very small (population 750) Midwest town. I'm seeing some changes here; not all are negative.
For coffees, more drip is being sold. I can't keep the airpots full. However, Lattes & caps are almost history. A few devotees remain.
More beans are being sold to the customer. Many more!
For meals, the heartier and simpler the better. They want a special. A special translates into one featured menu item which is about 25 cents off, but they sell like hot cakes, because they are "on sale".
Likewise, on my slowest day (Usually Mondays) I sell "a cup of Joe" (drip) for 25 cents with any meal (not a special that day). Man, they are flocking in.
As long as you keep them coming in the door, even if you are selling less volume for less money per, then the habit is there and they still have a place to come to vent and express themselves about the state of things. That is SO important to my customers. They are miffed if I don't personally speak with them (if a crowd descends) and they love home baked pies and cookies. Its COMFORT.... and we get the distinct pleasure of dishing it out on a daily basis. A much better line of work than the accountant next door..... Comfort them and they will keep coming. Just my two cents (hey, can I get a discount?)
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