Well said folks.
Obviously coffee can be very addicting (as most of us know)
I sure hope to see some imrpovement in business and our country can get back on track. I would have assumed the election was going to spark some postitive hope and the economy would start to turn back. Well, not so far. Coffee business is ok, but not where it needs to be.
Any suggestions how to get through these interesting times?
What is going on with consumer spending in this country? I'm hearing all kinds of stories about businesses failing and reveunes way down, etc. I know we're still building our business, but it's definitely apparent that people are holding onto thier cash a lot harder right now.
Anyone care to comment?
You said it starside8. Consumers are holding onto their cash a bit tighter now and rightfully so. They're afraid of what unseen dangers may be lurking just around the corner...
I do hope that others in this coffee forum will contribute some of their own recent sales data into these chronicles. Let us know how you are fairing in your area and what you think works and doesn't work for your coffee related business in these interesting times.
I've already offered my two cents on the subject, but of course, my knowledge of coffee industry is limited to the biscotti I send to them.
Well...people are very strange when it comes to negativity in the media. Even one of the "big wigs" at that corporate coffee company we all love stated that they overestimated people. They always thought coffee could overcome any obstacle in the economy because of it popularity. They may have been mistaken.
Everyday coffee drinkers are figuring it out how much they spend and are cutting it back since they've seen thier portfolios drop off the table.
You will still get the daily drinkers, but to get more in the door...discount promotions.
I think specialty gourmet coffee will slightly decline, but non-specialty standard coffee will probably grow. Just like McDonald's sales increase during this period, coffee is considered a staple.
we have more sales in drip coffee than lattes. I think people want to drink the lattes but, order coffee instead. Women drink more lattes, young kids,and men usually get drip.
Our drip is pricey compared to starbucks but, I think it is popular because it doesn't taste like a doney's ass.
We do have a promotion that is working really well. the customer appreciation card.
every tenth drink is free, any kind. so, there some people who come in and get drip everyday and splurge on a free latte. that's fine with us. it doesn't eat into our margins too much. I think people want the added value so, they keep coming back so, they can get that one free drink.
Once, the economy gets better we might change our format. But, my partner and I agree that giving a free drink means that they came nine times before. It is a little hard going for us since we are only a one and half month old coffee house. We are almost at our daily break even mark and it really is because of our customers who are loyal. Our customers worry for us because of the economy so, they try and spread the words and drag their friends in.
Yeah, back to the point. I think the added value is a great way to keep customers. Starbucks has this thing where if you get a drink in the morning the same day if you bring the receipt any drink is 50% off after 2pm.
That's smart, we are trying to start something similar. ACtually alot of things. It might seems over the top but, I feel like I have to fight for each customer now.
I can't wait for people to come in and check it out. They need an incentive and once they try the coffee, check out the atmosphere, and see the neighborhood vibe. They usually come back - because now they have to get this card stamped to get their free latte.
Things are very stagnant here in our area. We have many loyal folks, but people are not coming in as regular as they used to. We have the loyaly program where every 11th drink is free and we offer a lot of discounts for various programs. But...most people are buying drip coffee and staying away from the more expensive drinks. Unfortunately.
Here is a shout out to all the new coffee shop owners...take care and good luck getting through the challenging times!
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