Dairy Queen, Orange Julius and Cinnabon DESTROYING my business.

[PinkRose]

Also how does everyone else handle the snide use of Tall Venti and Grande?

I just look at them and say, "We offer a 12 ounce medium, and a 16 ounce large."

I sometimes have to hold up the cups so they can visually choose what size they want. It's interesting to watch them scrunch up their faces while they're thinking about how much coffee they want to drink.

 

[John P]

RMC,

If that's where you stand then, your "refuse to give in" attitude coupled with strategic action will get you through a lot. But be certain that you not compete on their terms with their accepted methods and behaviors. Compete on YOUR terms.

You have to do what they are not doing and you have to be what they are not.
Always be excited about what YOU don't focus on what they do.

Change expectations by redefining your space within that market. It is a doable task.

 

[CoffeeJunky]

Maybe we need to talk about the customer bases in the mall. I wrote the earlier post regarding actual experiences my friend had and resolved the problem for now. But I guess none of you are interested in knowing since it is very unorthodox method he used.

Customers at the Mall.

1 There are tons of young and older people but not too many between.
2. Mostly they are there to shop. Not to really drink or enjoy food
3. They look for brand names. If not, they would shop at discount store
4. They do not really know high quality.
5. This is important point.... They have money.
6. They like fancy things.

This is what I can think of so far.
If you make this list, it would be easier to come up with solution.

 

[PinkRose]

CoffeeJunky,

Your friend's approach was unorthodox....Taking on a $100,000 loan and also investing your life's savings is a huge step. Also, becoming a national brand isn't something that everyone wants to do if they can avoid it. Some people like to keep their business independent and try to find alternative ways to survive.

It's good that your friend's business has started to bounce back.

Rose

 

[Mr Shave]

Also how does everyone else handle the snide use of Tall Venti and Grande?

I just look at them and say, "We offer a 12 ounce medium, and a 16 ounce large."

I sometimes have to hold up the cups so they can visually choose what size they want. It's interesting to watch them scrunch up their faces while they're thinking about how much coffee they want to drink.

We have same sizes. why not make it easy for them and speak thwir / sbux language. We can do a 12 oz which is the same as a tall...

In the process of opening a mall location. Might have more insight in a coupke of weeks...

 

[eldub]

RMC: Is the business currently turning a profit?

If not, are you at least covering expenses?

How long is the lease?

If you really like the business but aren't turning a profit, have you considered moving the business to a better space when the lease runs out?

 

[CoffeeJunky]

The funny thing about all the answers everyone given so far does not give any direction or plan.
You all say you can't do this or you can't do that. But never a concrete answers because noone knows what it is to be in the position this person is in.

This is what I felt from his post. Please correct me if i am wrong.

1. he is either losing or not making any money.
2. His business is on it way to fold up with large debt.
3. He doesn't have much time to play around to get it right.
4. He needs quick fix like.... yesterday.


Saying you should not give samples, you should raise the quality, you should play with size of cups and other advise might be great for business that is not in trouble or have hefty competition. But if you are in urgent need of help, you should diagnose what the base of your customers want and go after their needs. That would be the first thing. Second is to be able to offer what other competitions can't offer. But all these would cost more money or tight plan. You might not want to be using national brand to represent your business but you just might not have have time to be chooser.

Good Luck with your business. I do feel your pain. And this is my honest opinion. Not speculation of what could and what might.

 

[RenaMariesCoffees]

RMC: Is the business currently turning a profit?

If not, are you at least covering expenses?

How long is the lease?

If you really like the business but aren't turning a profit, have you considered moving the business to a better space when the lease runs out?

Strange thing is we turned profit February and march, but all of the profit went into covering April and looks like to cover May.
My lease is until January.

Strange is our business is gettin worse and worse, while OJ for instance is getting better and better. I cannot help but feel as if we are being slandered by a mad mall employee at a department store or something. The mall employees are like a bunch of high school kids. Who didnt exactly like the new kid in town.
Another issue I have run into is, people do not like the fact I am 21. They are surprised and upset by me when the find out I'm the owner. I am humble about it, I do not tell people unless they ask. Should I just lie?

I honestly know I am in the wrong place for what I am, quality? WHats thats?
It doesnt belong in a mall, but I inherited a mess to clean up, or at least try my hardest to.
I would love to dump this crap coffee to go business and open up a stand alone, a real cafe. But that isnt exactly optional now.

 

[Foszer]

I'm not sure if you're right about your business hinging on the opinions of mall employees, but heh, you could be right. If that's the case, why not win them to your side by offering deeply discounted drinks? I know they like the other place that offers free refills. Maybe matching that (just for the mall employees) would be effective advertising, but I guess it depends on how much free coffee you'd end up giving away.

 

[eldub]

I wouldn't fret about your age. A great product and customer service should trump that.

 

[PinkRose]

Most of the places where I've worked in the past offered a 25% discount to local shop owners and employees. The "neighbors" were happy, and it kept the business coming in.

Do people actually ask you how old you are?

I can see how they'd get a little jealous, especially considering your age and the fact that you inherited a business. Most people working in malls are stuck in retail jobs that they probably hate. If the business wasn't run very well before you took over, that reputation is going to stick no matter what you do.

For example: I used to get pizza at a place that made a very good pizza. They sold the business, and the people who took over changed the recipe, and I tried the pizza and it was absolutely terrible. I never bought pizza from that place again. Last year, a new owner took over, and I've heard that the pizza is good again, but I keep on remembering how terrible the bad pizza was, and I can't bring myself to give the new guy a try. Everytime I drive past the place, I immedicately recall the crappy pizza experience.

Maybe people aren't giving you a chance because of a bad reaction to the previous management/employee/quality issues.

Did you change the name of the place, or did you keep the old name?

You have 7 months until your lease is up. Are you considering looking for a different location? If you can hang in there (or break the lease without a huge penalty) it may be your chance to get a fresh start.


Rose

 

[CoffeeJunky]

RMC,

I don't really think age matters unless you feel that way.
I think as Eldub said, you give great customer service, they will come back for more.
I thought your business was in big trouble but it seems it not as bad as I once thought.
And also starting a new cafe does not give you free ticket to successful business.
I think this business has chance if you were profitable in Jan and Feb. I do not know which state you are in but summer season is coming, I would put out my espresso base drinks out and give healthy discount now for them to come back in June and July when things are hot and craving for good drinks during the hot summer day. Also I would try to give out coupons for next purchase. Don't get upset if they com right back to use it. Just be grateful for their business.

Most of the people get upset when owner is young and cocky but if the owner is young and humble and willing, they will love you.
My business is right next to school and I get tons of high school kids come to have few drinks. I hired few guys (by accident) few of the girls come back to talk to him and they love coming to our shop just to see him. He is super friendly with young teenagers. I think young kids are easy to please if you try. I don't push kids business at my cafe but not going to discriminate them either.

I think this will be great life learning lesson and I hope you to get through this with great success.

 

[eldub]

I would consider selling iced coffee and iced tea during the summer months. The Toddy system makes great concentrated iced coffee. Whip up a batch of simple syrup using water and sugar, stock up on half and half and you should be ready for summer thirst quenching. (The simple syrup allows a customer to add sugar that will actually dissolve in the cold coffee.) Large batches of iced tea are also easy. Loose leaf tea steeped in the fridge overnight makes great iced tea. Just strain and put back in the fridge.

 

[CoffeeJunky]

Toddy is good and also you can make your own system. Use pound of ground coffee and that will make around 9 cups of concentrated coffee. Which you can add 4:1 water ratio and make 36 cups of ice cold coffee. Tea is little different. But also it is very easy to make. if you need some Youtube video, i will send you one.

 

[PinkRose]

Is this the Mall where you're located? #1146 on the Mall map?? I pictured a small Mall, but this one is quite large.

Hanes Mall -- Directory

I also saw that you've started a Facebook page too.