Specialty Coffee Retailer

Specialty Coffee Retailer August 2012

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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S���� �� ��������� ������: OK ��� ���, ���... C���� ��� ������� ������� ������, ��� ����-���� ���������� ������� ��������� �� ������ �������� ��� ������ �������� ������������. BY PAN DEMETRAKAKES A good job keeping up those performance standards, judging by the latest industry statistics. Th e not-so-good news is, there are various trends and pressures that will make it a challenge to hold to those standards over the long term. According to the Sector Report from the Specialty Coff ee customer experience. Th e basic idea that people can go out to a coff eehouse and treat themselves at a relatively low cost. Th e good news is, specialty coff ee retailers have done a lot of things put the "special" in specialty coff ee. Th ere's the quality and variety of the coff ee. Th e total "In our retail store, we defi nitely see an uptick in sales, which we hear refl ected by other local cafes," White wrote Association of America (SCAA) for the fourth quarter of 2011 (the latest available at press time), sales grew 8 to 9 percent, which was close to double the growth rate of the previous two quarters. Among coff eehouse owners responding to SCAA's survey, 32 percent said their sales in the fourth quarter exceeded their expectations, compared with only 11 percent in the third quarter. Based on a month-by-month comparison with the previous year, sales rose between 2 and 10 percent each month during 2011. Sales growth is partly attributable to a continuation of the (painfully slow) economic recovery that began in 2010. "By the fi rst quarter of 2010, people started going out to Sherry White, operations manager for JP's Coff ee, Holland, Mich., says the recovery is visible from her vantage point. " 14 | August 2012 • www.specialty-coffee.com drink coff ee again," SCAA executive director Ric Rhinehart said in a lecture at SCAA's annual expo in Portland, Ore. in April. "If you look at the same-store sales for places like Starbucks, you can see very clearly that they did a great job of enticing their customers back into the store. prices from their high of last May. Prices did increase by about 6.2 percent during the last quarter of 2011, but this represents a signifi cant drop from the 10-percent-plus increases during the previous two quarters. Th e composite price posted by the International Coff ee Organization fell from a high of $2.31 a pound in April 2011 to $1.58 in May 2012, and Arabica prices fell as well. (See chart on opposite page.) Th is has allowed coff eehouse operators some much-needed breathing room in their profi t margins. "Prices were crazy and it was really tough, but they're really come down recently, and things are good," says James Th e second major piece of good news is a retreat in coff ee " Caverly, president of Booskerdoo Fresh Roasted Coff ee Co., Monmouth Beach, N.J. NOT SO FAST However, prices haven't come down fast enough for many coff eehouse owners, who are looking askance at roasters over the issue. "Th e prices went way up, and with that, roasters raised their prices signifi cantly," says Josh Gerber, owner of 1369 Coff eehouse, Cambridge, Mass. "But then as prices have come back down, they have been much slower to lower their prices again, or have not at all. Th e roasters, for their part, counter that it's not so simple. " in an e-mail. "We're hopeful this indicates a soſt ening of the recession, which hit us as hard as anybody.

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