The Untold Profits of The Coffee Economy

coffee business

The Untold Profits of The Coffee Economy

1. Increasing Your Coffee Shop Profits


The most obvious answer to generate income in a coffee shop is through the sale of products, but sometimes sales can stagnate and may even decrease. In this case you can apply the following alternatives in order to know how to improve a coffee shop:

Cost reduction

The formula on which profitable businesses are based is very simple: sales – costs = profits.

Administrators usually focus on sales, on increasing them to increase profits. But there is another option to make money, and it is through cost reduction, so profits increase without the need to sell more.

To do this, it is essential to know what are the costs of the coffee shop, this is the reason why there is control of the costs, which are divided into fixed and variable.

With this cost control it is possible to analyze where the most important costs are in order to reduce them. For example, you may be able to make a change of coffee suppliers or reduce the size of the product. Visit also: How to manage a coffee shop.

Control the investment of expenses

Costs, as we saw earlier, are fundamental to the operation of the business, while expenses are focused on making investments to increase productivity. That is, for example, when you set up a coffee shop, you generate the sales expenses, which are the expenses destined for the commissions of the sellers or in advertising and business promotion.

One way to make money is to focus on controlling those expenses in order to determine if a profit is being generated.
Take advantage of lost space

If you have a very large space in your coffee shop and it is not fully occupied, the best alternative is to sublet or rent part of the space to another business.

When you start a coffee shop business, you often have plenty of space, over time you realize that there are several tables that can never be filled. In these cases, it is possible to divide the space by making the business smaller. This option will make the rent payment decrease, in case it is a rented space; If the space is your own, you can obtain a fixed monthly income in rents or a single gain with the sale of the space.

Make packages

This type of sales strategy is very effective and rarely used in small businesses. It consists of offering the products in the form of a package, so you can generate more profits despite giving more products. A clear example would be the promotion of increasing the size of the beverage and food for only $ 10 more.

Offer complementary products

It is not necessary to offer the same product line always to sell more, you can add a complementary product.

These products are intended to complement the business value offer and do not compete with current products.

It is very important not to include products that can compete with each other because the purpose is not to sell a product, but to replace the sale of one product with another.

Create sister brands or businesses

This strategy is to make a new brand or business that is positioned near the original product with the purpose of selling more and generating more money, that is, opening another coffee shop with a different name, so both are yours but customers do not know and they think they are from different owners.

This occurs when there is a lot of demand or the customer compares prices a lot.

2. Expanding Your Coffee Shop Reach


If you are a cafeteria owner and want to find new ways to operate a cafeteria, in this article you will find ways to get closer to coffee lovers.

For this it is important that you know how you can market your brand and the coffee it offers, that allow you to develop effective strategies to sell your products in greater quantity.

That is why many coffee marketing industries suggest the following ways:

Open a Franchise in a University

Universities are a great opportunity for a coffee franchise, especially if you own your cafeteria considering opening a franchise within a university campus is one of the best marketing and marketing options.

A large part of coffee consumers in the country are in the ages of 20 to 25 who are precisely the most common ages of university stages and young professionals.

Therefore, developing a solid business plan that specifically establishes the advantages of this and why it would be a great investment is important. You can ask for help from people who have experience in cafeteria management and especially in university areas.

Have Coffee Kiosks in Patisseries or Bakeries

This is another opportunity to market your coffee (especially if they are special mixtures of the house). If you have a bakery or bakery nearby or own it is a great idea to merge this with coffee, especially in the mornings when people look for something hot, tasty, fresh and fast for breakfast or lunch.

In the case that you do not have a cafeteria but if a bakery or bakery then it is suggested that you consult brands that suit you to make a cafeteria investment for your business and thus open your market not only to baking and baking but to the world of coffee.

Now if you already have a cafeteria, see the fact of putting a kiosk as a type of franchises (so to call it) offering precisely your brand and coffee products to patisseries and bakeries.

Demonstrations in Supermarkets

If what you are looking for for a cafeteria is rather to become a supplier or distributor of your own coffee, either because it has its own mixes, type of roast, etc; Then this marketing idea will be very timely.

Supermarkets are areas of high traffic of people, which represents a good idea to start showing the products offered by its line of coffee shops. Talk to the managers of the most popular stores and take samples of their products to offer.

Once they try them, then ask them to allow a space to offer your product to the customers of the store, where they offer fresh fresh coffee. Let them know what coffee you are offering, the quality of your product and the reasons why it is a good idea to buy it.

These are general marketing ideas, now I properly present some marketing ideas.

Cafeteria Partners

Looking for partners does not mean that you have to share your cafeteria, with this we mean that you look for other instances such as chocolate shops, supermarkets, patisseries, etc., that offer your coffee products and sell them, in exchange for a fee.

For this, what you need to do is calculate your costs and give them a price that is a little cheaper and that allows you to earn both you and them. Now another deal you can do is that if they offer your product, you will offer theirs in their cafeteria, so they both win.

Point to the Local

In this you can see what kind of customers buy their products and take advantage of it. For example, if they are young people from an institution near their cafeteria, you can offer discount cards especially for them.

Also take advantage of your local products, if there is a specific ingredient that is specific to the region, take advantage and use it as a marketing strategy by offering it in your business. Obviously it has to be something that goes into the concept and can be accompanied with coffee.

The barismo is one of the important parts for your cafeteria and the coffee to which you can take advantage.

Many people arrive at coffee shops without paying the slightest attention that the person who prepares their drink has to be a barista. What you can do is offer baristas exhibitions, where your barista shows his clients his machine skills and the preparation of drinks with coffee.

Another idea is to offer contests where your customers can show their skills and knowledge of coffee and the winner offer a supply of free products or benefits in your cafeteria.

Doing both allows your customers to taste the quality of the coffee they are selling and thus become more interested and consume.

3. Ways to Sell More Coffee


If you want to sell your customers not only a coffee but many coffees start by having a coffee that is worth entering your establishment and especially return to it.
We all know coffee shops that put hundreds of coffees in one morning and others just a few meters away.
Chance, the truth is that it does not have to be.
If you have a coffee for coffee shops that is a quality coffee you will have many more options that people like if you have a robust coffee one hundred percent, or worse, a roasted coffee or coffee mixed with roasted presence.
We have already said that whatever the coffee is, the customer who needs a coffee like breathing will not be lacking, and that he will come in to drink it whatever the coffee you serve.
But here we are not talking about selling a coffee to a customer once in your cafeteria.
Here we want to talk about how to sell many coffees, to a loyal customer who goes to your cafeteria to enjoy a great coffee.
Bet on the quality of coffee you offer to your client.
Yes friends betting on serving great coffees to your customers, which leads them to return consciously or unconsciously because the best coffee in your neighborhood, town or area is served in your cafeteria.
The question is: what is great coffee then? And the answer is essential to offer the customer that coffee he is willing to drink. Well, a great coffee is born thousands of kilometers from us, in the equatorial zone of the planet, good in this case the bad one too.
Let’s focus then on the differential of a good coffee
A great coffee is usually born from Arab coffee coffees.
Or at least in a very high percentage of Arabica coffee when not one hundred percent is Arabic, it must be at least 90% in the case of robust blends.
That ten percent that is a robust quality. There are robust cultivated in height that perfectly fulfill the function of providing body to coffee blends for cafeteria.
Some of the characteristics of a good coffee are:

  • Born in height, more than a thousand meters above sea level.
  • It is collected selectively by hand in full grain maturity.
  • It is a coffee with a wet beneficiary, which is nothing but the coffee has been washed.
  • Please that the coffee beans arrive freshly roasted to your cafeteria.
  • Grind just before making coffee.
  • And they are made with correction and knowledge of an expert barista.

Quality coffee is enough in itself to sell coffee.
If you want the truth, no. It is the basis of everything but we need something else.
We all have or have had places where we love coffee and others to whom we have placed a cross from day one.
Making your place one of those that remains in your client’s mind as a great place to drink coffee is essential but requires effort.
The above is not just about drawing in coffee with milk, it is about making a magnificent espresso only, an American, a cut.
Offer diversity, differentiate yourself from the competition:
There is no single preparation of coffee.
There are literally hundreds of ways to prepare a coffee, it can be mixed with a lot of things, from milk to whiskey, the number of preparations is extensive.
Take advantage of the opportunities to create your own coffee menu.
That variety is a business opportunity that you should take advantage of, in addition to the classics, alone, cut, with milk, you can serve a cappuccino, latte or American
Yes, an espresso machine will be essential for Spain. I am not saying that you do not express but that you offer other options besides that which is essential in itself.
Why not offer coffee made in coffee machines without Chemex or Cone type cables? Isn’t it possible to make coffees in French press and serve it to your client?
Or if you have a very traditional establishment, a coffee pot to finish a meal, for example, can be very well received.
Of course, at each procedure its times, its water temperature, the degree of milling, etc. Let’s take care of the coffee we serve.

4. Other Products You Can Sell With Coffee

other coffee products

It is difficult for us to suggest what products you can offer in your business without knowing it, where it is located, what public it has, opening hours, etc. For reflection, there are coffee shops that sell gluten-free products, which you find a wide variety of lactose-free or fair-trade, organic drinks; There are also trends and you know that there you will always consume the latest and most modern, there are natives who love to offer smoothies, bowls and all kinds of preparations with fruits.

The best coffee shop negotiations will be those that consider a good strategy in the short, medium and long term. Taking into account the location of the business and the surrounding atmosphere is essential to start thinking macro and micro. Both the products and the environment that offers them must respect a certain order.

While you can always change along the way, the important thing is never to stop; We will try to find the target audience from the beginning of the project -this will help you not to lose money, within other expenses: energy and time-, be it the opening of a new store, restructuring of a place or incorporating new products for your coffee shop.

Although it is an almost obvious answer, it is important to clarify that there are products that come out all year, others that are sold in winter and there are also those that are offered only in summer. We cannot fail to name those occasional ones, the individuals that are offered in certain cities (that the tourists wish to consume) or what for some holiday they sell more in some day of the year.

It is the first premise to start offering new products inside a coffee shop. Not everything ends in espresso, coffee with milk and croissant – or snacks. There are many products you can offer to give your customers a new sensory experience. Smoothies, frapps, aa bowls, iced teas, chai latte among the drink examples;

Coffee latte.

While coffee is a product that is sold without much marketing, if you want to start making a more bulky margin, we suggest you, do not stop thinking about the option of smoothies (proportion: a smoothie comes out of the bar, enters 3 / 4 profit), iced teas and frapps in summer; cup chocolate, premium teas, winter soluble chai latte and the novel turmeric, matcha or beet lattes (in addition to cocoa protein , which can also be made latte). Users will enter your business for a coffee, offering them a varied menu – not forgetting the target described above – there are great possibilities that a very high percentage end up consuming another drink with something other than croissant.

Here you will discover the key that will bring you closer to success: attend as you would like to be served, maintain the environment as the client wishes – take care of the noise, space, cleanliness, colors, comfort – and offer the best experience in flavor . There is a world besides selling a rich espresso coffee.

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