Specialty Coffee Retailer

Specialty Coffee Retailer May 2011

Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.

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W hile many coff ee shop workers take coff ee breaks during the quiet aſt ernoon hours, those at Family Grounds Cafe in Chicago oſt en greet a new crop of mothers and babies. By hosting mid-day support groups for new moms, the urban coff ee shop also introduces its 1,500-square-foot indoor play space to customers likely to return as their infants morph into toddlers and preschoolers, says John TenBrink, co-owner of the shop with his wife, Brady. Th e play area off ers several themed playhouses complete with dress-up clothes, a building area chock-full of toys, a performance stage, a schoolhouse and a sports center with basketball hoops and more. It’s a cafe where “kids can be kids,” TenBrink says. By welcoming children and off ering free parking, the shop has become a destination for families. Th e family-friendly strategy is just one creative way coff ee shops are luring customers during what traditionally has been the slowest period of the day. From 1 to 3 p.m., traffi c at Ritual Roasters in San Francisco’s Mission District oſt en drops 75 percent, says manager Julia Lancer. During the down time, workers clean and gear up for evening events that can include art shows, slide shows or other planned group gatherings. But by turning that down period into a time for aſt ernoon tea, coff ee tastings, playgroups or special programs, other coff ee shop owners say they have boosted overall revenue and operating margins. Given the challenging economy and the rising cost of food and energy, incremental sales during aſt ernoon hours are more important than ever, experts say. BY THE NUMBERS Per capita consumption of specialty coff ee slowed to 2.3 cups per day in 2009 from 2.63 cups per day the prior year, as fewer consumers made daily trips to coff ee shops, according to a report from the Specialty Coff ee Association of America [SCAA] based in Long Beach, Calif. A survey conducted during the third quarter of 2010 suggests operators are bullish about the future and expect growth of 8 percent to 9 percent in 2011, the SCAA reports. But commodity costs are rising faster than menu prices, putting margins under pressure. What’s more, the competitive landscape has intensifi ed, resulting in price promotions and discounting. At the same time, to keep pace with rising costs, many operators are increasing prices and boosting sales of higher-priced items, such as blended coff ees, the report says. Sales of ancillary products, such as food, merchandise and ready-to-drink beverages, eked out modest growth of 1.6 percent during the third quarter of 2010, compared with a 5 percent increase in blended and iced coff ees, the study says. Yet some experts are projecting future coff ee shop growth will stem, in part, from a broadening array of products. MARKETING MIDDAY MENUS Homemade triple-chocolate cookies “the size of your face” are delivered to Verve Coff ee Roasters in Santa Cruz, Calif., at The Blue Bottle Coffee Co. in Oakland, Calif. offers free public cuppings on weekends to entice customers. May 2011 • www.specialty-coffee.com | 13

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