Slow Times calls for Higher Quality, Better Focus in Specialty Coffee
by Peter Kelsch
From the Cup to the Customer Service
Knowing that your customers can now pull through a McDonalds drive-thru and order a Mocha is all the more reason for an independent coffee shop to make sure that they have not only a noticeably better product than a fast food chain, but also the most consistent drink
and best presentation. This means reviewing everything from the cup to the customer service.
When pressed to upgrade the quality of products being used, we often hear customers say, “But my customers love my drinks.” This may be true based on feedback you get from vocal regulars, but not for the customers that may not come back because they had one or two bad experiences. Customer retention is a good reason not to change things up too much, but if you’re not getting the volume of customers to make it all worth while, quality improvements can be the perfect solution.
Changes Can Lead To Profit
The changes you make will help you gain more market share and also tells you that making more profit per drink is the most important factor. This is only true if you develop enough sales volume for that item. You may make $3 on every Supreme Deluxe Low Cost Smoothie (yes, we’re making this brand up!) that you sell. However, because the quality isn’t there, you’ll only sell 10 smoothies per day, resulting in $30 of profit. If you upgrade to Botanica Smoothies and make $2.50 per smoothie, you may sell 30 per day, resulting in $75 of profit. Remember, profit margin is relative to volume, and you gain volume when you sell premium drinks customers cannot buy anywhere else.