View entire thread: FEEDBACK on SALES ESTIMATE AVERAGES....
Posted by Juliann Castell on 2006-04-29 10:16:22
Post Subject: FEEDBACK on SALES ESTIMATE AVERAGES....
Any feedback/thoughts and advice:
This is to be used for my estimates for sales for total volume and sales for a business plan: Coffee House - suburban community (not core downtown but mid to mid-upper class development of currently 7k residents
Assumptions:
$1.65 100 percent of sales coffee sales
add on $2.00 (50% of coffee sales will be specialty)
add on $5.00 (50% of sales will include food)
-- then I take these figures and multiply by my optimistic and pessimistic volumes for M-F; S/S. e.g., 100/150 and 150/200.
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View entire thread: Want to Take over a Coffee Shop in Northern Wisconsin?
Posted by ourcoffeebarn on 2008-09-22 16:11:20
Post Subject: Want to Take over a Coffee Shop in Northern Wisconsin?
I have a customer of mine that I supply roasted coffee to that wants someone to take over her business. The way I understand her she wants someone to buy out her investment of about $30,000 but she may be willing to take as low as $15,000. The shop is called Buggas Bistro in Amery WI.
With a little willingness to work and I have a few ideas to help with coffee sales it should work. She also sells sandwiches and is currently open just not doing as much sales as she needs to support her Family.
The shop has an apartment in the same building so it would make a GREAT live,work combo. Also in the heart of vacation land! Both Summer and Winter!
Contact me for more information.
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View entire thread: Welcome to the Coffee Industry
Posted by CoffeeLover on 2003-05-14 12:24:24
Post Subject: Welcome to the Coffee Industry
The Coffee Industry forum is for those who are in the coffee industry and are looking to get into it. From Coffee Growers, the merchants, industry leaders, coffee sales, coffee shop and cafe owners.
Here you may post information related to the coffee industry, this forum is moderated and you must be registered to post. Spamming is not permitted, this is a information forum and all posts must offer information. If you run a coffee website link to the Coffee Forums site from your site, click the links button at the top to join and get traffic for linking.
If your looking to get into the coffee industry or are already a part of it no matter how big or small this is the forum to discuss all the issues, news, and questions relating to your industry.
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View entire thread: Cost of Roasted Beans?
Posted by thedot on 2007-10-21 18:47:02
Post Subject: Cost of Roasted Beans?
Hello folks,
I am trying to wrap my mind around some volume pricing options.
I'm wonder if you all could assist me just a bit.
What is a fair, yet competitive price for roasted coffee beans?
I'm sure folks can get large quantities at a discounted price...so I'm hoping you all can assist me with what a good price for a volume of beans would be?
To be honest, I would like to be competitive; and so I thought why not ask the folks that buy this stuff?
We roast up the beans, and we ship nationwide, but we're basically selling to home users.
We sale commercial equipment, so we'd like to increase our coffee sales to our commercial customers (restaurants, hotels, coffee shops, etc.).
Do you have any suggestions?
Thank you.
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View entire thread: fair trade article
Posted by topher on 2004-10-07 10:49:29
Post Subject: fair trade article
Fair Trade coffee demand sparks debate on workers' wages, lives
BY JAKE BATSELL
The Seattle Times
BALGUE, Nicaragua - (KRT) - Coffee has helped provide water for Jose Felix Centeno Castillo's home, school for his nine children and a better life for his fellow farmers.
Castillo and other members of his farming cooperative receive among the highest prices in the coffee industry - $1.61 a pound - for the beans they grow under towering trees on the volcano slopes of Ometepe Island, Nicaragua.
But do not look for a Fair Trade Certified label on the packages that carry Castillo's coffee. That coveted stamp of approval costs money - farmers and roasters pay for the label - and would shave hundreds of dollars from his co-op's annual earnings.
The co-op's coffee, sold in the United States by a Bainbridge Island, Wash., nonprofit, is marketed as "fair-traded." It is a semantic difference that highlights a growing debate within the specialty-coffee industry about workers' wages and their quality of life.
Booming U.S. demand for Fair Trade coffee has triggered an industrywide tiff about what exactly "fair" means when it comes to paying farmers.
Oakland, Calif.-based TransFair USA labels Fair Trade coffee after certifying it was grown by small-scale farm co-ops that were paid a fair price - at least $1.26 a pound - for their beans.
Other growers and sellers are finding ways to call attention to their sustainably grown coffees, which they say also provide a decent living for farmers. Fair Trade label or not, they say, their coffee is sustainably grown, or farmed in a way that respects the environment and is fair to workers.
"To say that everything else that we're doing is not good, and what they're doing is good - it's been a big struggle for us," said Pete Rogers, green-coffee buyer for JBR Gourmet Foods in San Leandro, Calif.
JBR often pays more than Fair Trade prices for its coffee, Rogers said, and it sponsors dozens of community-development programs in countries such as Mexico and Zambia.
"What they (TransFair USA) have done is a great job of selling the public on the idea," said Seattle's Best Coffee founder Jim Stewart, who sold his stake in Seattle's Best but still owns an organic coffee farm in Costa Rica. "It's kind of an easy way out. You see that stamp and you say, `Ha.'"
---
Volatile swings in the global coffee supply have slashed wages for thousands of farmers and workers in recent years.
Unroasted coffee beans that sold for nearly $2 a pound wholesale in 1997 dipped to under 50 cents a pound in 2002 - a price below many farmers' production costs, which generally average 60 cents to 90 cents a pound in Central America. Prices now hover between 70 and 80 cents a pound.
Fair Trade Certified coffee spares farmers from the ups and downs of commodities markets by establishing a minimum price for their product - currently $1.26 a pound for arabica beans, the type preferred by specialty roasters. Independent monitors confirm farms receive the Fair Trade price.
Since it began certifying coffee in 1998, TransFair USA has seen demand rise sharply for packages bearing its black-and-white Fair Trade label. Last year, the organization certified 18.7 million pounds of coffee, nearly doubling its 2002 total.
Dunkin' Donuts recently introduced a line of Fair Trade espresso drinks, and even canned-coffee giant Procter & Gamble, maker of Folgers, has developed a Fair Trade blend under its Millstone label.
Other retailers have taken the concept much further - a Fair Trade-only coffee company called Equal Exchange has become increasingly popular with church groups around the country, and Caffe Ladro, a seven-store independent chain in Seattle, serves "triple-certified" coffee that is Fair Trade, organic and shade-grown. Retail prices vary, but Fair Trade, organic and shade-grown coffees are generally a bit more expensive than standard specialty coffees - a few cents more for espresso drinks and about $1 more for a 1-pound bag.
"The vast majority of consumers and citizens in this country sympathize with the underdog," said TransFair USA Chief Executive Officer Paul Rice. "If presented with a choice between coffee that helps people and coffee that doesn't, it's natural they would want to choose coffee that helps people."
Buying coffee stamped with the Fair Trade label "is a relatively effortless way for people to make a difference in the world," TransFair USA Chief Executive Officer Paul Rice said.
TransFair's model requires Fair Trade farms to be part of a democratically run co-op, a rule that has riled owners of larger farms and estates who complain they are shut out from the Fair Trade system even though they treat their workers well and pay them fairly.
Meanwhile, several smaller U.S. roasters who had sold 100 percent Fair Trade coffee broke their alliance with TransFair earlier this year, contending TransFair has become too cozy with coffee corporations such as Starbucks and Dunkin' Donuts, whose Fair Trade offerings amount to a small fraction of their total coffee supply.
Even some who are eligible for Fair Trade status say they do not see why they should pay TransFair's certification fee, which until recently had been 10 cents a pound, to simply rubber-stamp what they already know to be fair and ethical business practices.
That is the stance of the Bainbridge-Ometepe Sister Island Association, which pays $1.61 a pound for the coffee grown by Castillo's co-op on Ometepe Island and sells it to Seattle-area retailers. All the coffee's profits pay for community-improvement projects on the Nicaraguan island.
"Ten cents a pound, when we do 14,000 pounds a year, is a lot of money that can go back to Ometepe," said Lee Robinson, the association's treasurer.
Rice says TransFair has reduced its certification fee schedule to as low as 5 cents a pound. He says he understands why a sister-island association based on direct personal interaction would find it unnecessary to pay for third-party certification.
But on a larger scale, he said, the Fair Trade label provides skeptical consumers with verification that companies are paying fair prices to growers.
"It doesn't mean we are the only way, but right now we are the only company that provides independent verification," Rice said.
---
A number of U.S. roasters and retailers say TransFair's model is one of many ways to protect farmers and the environment through sustainable growing methods - that is, techniques that benefit workers and the environment.
Starbucks, which says Fair Trade coffee accounts for about 1 percent of the coffee it buys, started an incentive system three years ago that paid premiums of up to 10 cents a pound to growers who met certain social and environmental criteria, such as paying at least minimum wage and treating and recycling the water used to wash beans. Starbucks says it paid an average of $1.20 a pound for the unroasted coffee it bought last year.
JBR Gourmet Foods, whose signature product is its 3-pound bags of San Francisco Bay French Roast sold at Costco stores, says it pays at least $1.38 a pound at 18 coffee farms around the world. It also pays for community projects, which have included schools, medical clinics and a baseball field.
While his company makes three Fair Trade blends under its Organic Coffee Co. brand, Rogers said the Fair Trade logo can leave consumers with a misguided perception that any other coffee is not sustainably grown.
"We really believe we're making more of a direct impact with what we do," Rogers said.
Jim Stewart, who founded Seattle's Best Coffee before selling his stake but still owns an organic coffee farm in Costa Rica, said TransFair's set prices can reduce the incentive for farmers and workers to produce a high-quality crop.
Instead, Stewart said he prefers to encourage workers to pick ripe beans by offering perks based on a full season's harvest. During Stewart's tenure at Seattle's Best, the company earmarked profits from each year's crop for projects such as schools and water pumps. He and his wife, farm owner Luz Marina Trujillo, still deliver new school uniforms each year to the families who work at their farms in Costa Rica.
The incentive-based approach, Stewart said, tells workers that "because you've done such a good job, your coffee has more international value, and here's some of that value for you to use in your community."
"It's not just more money - `Here it is, good luck,'" Stewart said. "It's a reward. It's not a gift. It's not a donation. It's not charity."
Rice said while community projects sponsored by individual coffee companies are commendable and well-intentioned, they also can be seen as a form of paternalism.
"We just believe there's a more sustainable model that empowers farmers to help themselves," Rice said.
Global demand for Fair Trade coffee is still relatively low - Fair Trade coffee accounts for perhaps 5 percent of specialty-coffee sales in the U.S. - but that demand is growing. Rice said Fair Trade farmers have plenty of incentive to strive for top quality. If they do not pay attention to quality, he said, their coffee will not sell.
---
With demand rising for Fair Trade and other eco- and worker-friendly coffees, caffeinated consumers are wading through what can be a confusing array of labels. Shoppers perusing the 12-ounce bags at their favorite espresso bar or grocery store often must choose between organic or shade-grown, or Fair Trade versus fair-traded.
A recent stroll down a Safeway aisle found coffees bearing three organic logos, the Fair Trade symbol and descriptions including shade-grown and "100% mountain farmed."
Rogers suggests the U.S. government take up the issue of Fair Trade coffee, similar to how the U.S. Agriculture Department recently introduced a "USDA Organic" logo.
"There's all these myriads of certifications out there that confuse the consumer," Rogers said. "If the government were willing to get involved with Fair Trade, I think that would be a very positive step for the consumer."
---
The Carlos Diaz Cajina Cooperative on Ometepe Island is not part of the Fair Trade program. But with the co-op's coffee selling for $1.61 a pound, its farmers say they feel fairly compensated. During the Sandinista era in the 1980s, they received less than 20 cents a pound.
"We have a better life," Castillo, 66, said through an interpreter. "Before, selling coffee at that price, I didn't have the money to survive. I didn't have money for the food I needed, for clothes."
Coffee profits have brought a water system to his village and helped him pay school fees for his six sons and three daughters, he said.
"Maybe it's not that our houses are nicer and we live like rich people, but now I can do things like send my kids to school," Castillo said. "Now, I'm not just subsisting. I can live more comfortably."
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View entire thread: Costs...
Posted by caffe biscotto on 2008-04-29 04:59:39
Post Subject:
Erik,
John P replied to your similar question last week, here is the link:
http://www.coffeeforums.com/viewtopic.p ... ght=#31234
Now, while some will recommend that you stick to what you know best, coffee, I would like to add that sometimes it's better to diversify. If you're able to manage diversity that is. Offer something unique to your area.
There's a local 200 acre vegetable farm here that would have been put out of business a long time ago by the newer super markets that moved into the area.
They began to add things to their farm that would attract a larger customer base. In addition to their produce, they started raising free range chickens, started a fully operational bakery (which I helped to get off the ground), and put more emphasis into their greenhouse by adding a larger variety of flowers.
Regarding your questions, you could try a "search" in the forum, using keywords such as:
utilities -
insurance -
cogs -
growth rate -
% coffee sales -
Good luck and Welcome to Coffeeforums!
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View entire thread: Is the economy hurting your business?
Posted by PinkRose on 2008-09-16 08:12:36
Post Subject:
Hello "Tarborolife"
In April of this year, I started helping a friend in her a local cafe while one of her baristas was recovering from surgery. All throughout the summer she was constantly remarking that the coffee sales were down considerably from last year (some days as much as 50% less sales compared to last year at the same time).
I noticed that as the summer progressed, people who had been coming in and ordering espressos, lattes, etc. were switching to just getting cups of house blend drip coffee (and sometimes tea). Many remarked that they couldn't afford the $3.75 for their morning coffee fix every day.
Some people, who usually bought coffee and a muffin each morning, started eliminating the muffin stating that they were saving money and calories too. Others would compromise, and instead of paying $1.60 for a muffin, they bought one cookie for 80 cents.
An interesting thing is that I often noticed that some of the same people would return later on in the afternoon and buy the same items (coffee and cookie) for an afternoon "pick-me-up."
Another interesting thing is that the summer sales of "smoothies" (iced blended drinks) were down too. At a price of $4.00 each (and tons of calories), people were considering the smoothies but deciding to get iced tea or iced coffee at $1.75 instead. Others went to the cooler and got a bottle of water or Pepsi for $1.50.
It's obvious that even though many people don't have much money to spend right now, they still want to get their treats. I think as long as you can make them feel welcome and comfortable when they come into your cafe, they will spend what they can afford, and maybe they'll keep coming back and eventually buy more when they have more money to spend.
I know it's little comfort to hear that lots of businesses are feeling the pinch of the falling economy. I'm sure you're not alone. I know you and the other cafe owners in this forum will come up with creative ways to ride it out until things get better.
Best Wishes,
Rose
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View entire thread: Economic Crisis and the State of the Bean
Posted by LaMarzocco on 2008-10-22 21:05:21
Post Subject: Economic Crisis and the State of the Bean
I know this is a similar post like the recent "Coffee Sales" post but it's a little different... here goes:
I'm thinking about buying a coffeehouse in CA but I'm nervous about the current economic climate and how it might affect coffeehouses in general. Can I have some input from existing owners about how your businesses are doing and how you see the economic "crisis" potentially affecting you?
Thanks in advance!
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View entire thread: Projections
Posted by Anonymous on 2004-10-09 02:06:05
Post Subject:
Hi,
5,000 Cups? It might not be right; however, this all depends on the location.
Statistics show that:
Americans consume 400 million cups of coffee per day making the United States the leading consumer of coffee in the world.
Specialty Coffee is America's Hottest Growth Industry and the demand is growing at an unprecedented rate.
Specialty coffee sales are increasing by 20% per year and account for nearly 8% of the 18 billion dollar U.S. coffee market.
Among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day.
At the present time there are approximately 8,000 Coffee Shops across the country. There will be approximately 12,000 Coffee Shops by the year 2005.
The average price for an Espresso based drink is $2.45.
The average Espresso Drive-thru Business sells approximately 200-300 Cups of Espresso and Coffee Based Drinks per day.
---------------------------------------------------------------------------
More information and statistics can be found at:
http://www.e-importz.com/Support/specialty_coffee.htm
---------------------------------------------------------------------------
If you are interested in learning more information about opening an espresso drive-thru business, please look into the informational guides available at www.e-importz.com
------------------------------------------------------------------------------------
E-Imports Drive-Thru Start-Up Guide
Searching for information regarding opening an espresso drive-thru business? "E-Imports Drive-Thru Start-Up Guide" is the first practical guide designed for achieving extraordinary success.
Composed from many reliable sources, including the Specialty Coffee Association of America (SCAA), our valuable "Drive-Thru Start-Up Guide" contains powerful successful techniques revealing the steps and strategies for charting an unconventional path to success.
http://www.e-importz.com/E-Imports_Driv ... _Guide.htm
---------------------------------------------------------------------------
Successful Drive-Thru Operations Guide
Is there a secret to sustaining prosperity in today's competitive business environment? The answer is Yes; Ongoing organizational improvement.
If you are in the start-up phase, or need to make dramatic improvements in productivity, quality, marketing, planning and customer service and satisfaction; than our Successful Drive-Thru Operations Guide is the perfect source for you.
http://www.e-importz.com/Successful_Dri ... _Guide.htm
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View entire thread: Typical cost per sale?
Posted by Anonymous on 2004-10-09 00:47:37
Post Subject: coffee statistics
Specialty Coffee is America's Hottest Growth Industry and the demand is growing at an unprecedented rate.
Specialty coffee sales are increasing by 20% per year and account for nearly 8% of the 18 billion dollar U.S. coffee market.
Among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day.
At the present time there are approximately 8,000 Coffee Shops across the country. There will be approximately 12,000 Coffee Shops by the year 2005.
The average price for an Espresso based drink is $2.45.
The average Espresso Drive-thru Business sells approximately 200-300 Cups of Espresso and Coffee Based Drinks per day.
---------------------------------------------------------------------------
More information and statistics can be found at:
http://www.e-importz.com/Support/specialty_coffee.htm
---------------------------------------------------------------------------
E-Imports Drive-Thru Start-Up Guide
Searching for information regarding opening an espresso drive-thru business? "E-Imports Drive-Thru Start-Up Guide" is the first practical guide designed for achieving extraordinary success.
Composed from many reliable sources, including the Specialty Coffee Association of America (SCAA), our valuable "Drive-Thru Start-Up Guide" contains powerful successful techniques revealing the steps and strategies for charting an unconventional path to success.
http://www.e-importz.com/E-Imports_Driv ... _Guide.htm
---------------------------------------------------------------------------
Successful Drive-Thru Operations Guide
Is there a secret to sustaining prosperity in today's competitive business environment? The answer is Yes; Ongoing organizational improvement.
If you are in the start-up phase, or need to make dramatic improvements in productivity, quality, marketing, planning and customer service and satisfaction; than our Successful Drive-Thru Operations Guide is the perfect source for you.
http://www.e-importz.com/Successful_Dri ... _Guide.htm
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View entire thread: Coffee Stand - Expected profits
Posted by Anonymous on 2004-10-09 00:34:47
Post Subject: Specialty Coffee Statistics
Specialty Coffee is America's Hottest Growth Industry and the demand is growing at an unprecedented rate.
Specialty coffee sales are increasing by 20% per year and account for nearly 8% of the 18 billion dollar U.S. coffee market.
Among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day.
At the present time there are approximately 8,000 Coffee Shops across the country. There will be approximately 12,000 Coffee Shops by the year 2005.
The average price for an Espresso based drink is $2.45.
The average Espresso Drive-thru Business sells approximately 200-300 Cups of Espresso and Coffee Based Drinks per day.
---------------------------------------------------------------------------
More information and statistics can be found at:
http://www.e-importz.com/Support/specialty_coffee.htm
---------------------------------------------------------------------------
E-Imports Drive-Thru Start-Up Guide
Searching for information regarding opening an espresso drive-thru business? "E-Imports Drive-Thru Start-Up Guide" is the first practical guide designed for achieving extraordinary success.
Composed from many reliable sources, including the Specialty Coffee Association of America (SCAA), our valuable "Drive-Thru Start-Up Guide" contains powerful successful techniques revealing the steps and strategies for charting an unconventional path to success.
http://www.e-importz.com/E-Imports_Driv ... _Guide.htm
---------------------------------------------------------------------------
Successful Drive-Thru Operations Guide
Is there a secret to sustaining prosperity in today's competitive business environment? The answer is Yes; Ongoing organizational improvement.
If you are in the start-up phase, or need to make dramatic improvements in productivity, quality, marketing, planning and customer service and satisfaction; than our Successful Drive-Thru Operations Guide is the perfect source for you.
http://www.e-importz.com/Successful_Dri ... _Guide.htm
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View entire thread: Some helpful information needed
Posted by Alun_evans on 2008-06-16 19:47:23
Post Subject:
In very general terms, most farmers have no way of getting their crop (green beans) to the big consuming markets- the US, Europe, Middle East and Australasia. So Coffee Brokers or sometimes bigger (or small but inventive) roasters buy the green (read: unroasted and unground) coffee from the farmers. The coffee is then shipped in sea containers to the buyer country.
Most roasters still buy their green coffee from large coffee brokers- such as Royal Coffee in New York. This saves the roaster the hard work of sourcing the coffee him/herself.
Generally in most countries Supermarkets do not roast their own coffee- although in the USA with the huge volume of coffee sales that go through some of the chains, I would not be suprised if there was some ownership link-up between some of the huge retailers and roasters.
You should try googl'ing "Coffee Brokers" and then you will get a list of the companies that import coffee.
Good luck with the project
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View entire thread: Start Up
Posted by coffeenovice on 2005-09-11 14:48:26
Post Subject: Start Up
I have been researching opening a coffee drive thru in Iowa for the last 5 months.
Staight up- What is the least amount of $ someone can get into the drive thru business for? I want a building with an attractive look with a bathroom and excellent coffee. I've already checked into the Mountain Mudds of the world and this area of Iowa isn't receptive of the little shed look. My part of Iowa requires a bathroom and running water.
I've considered Fox Hollow as consultants and Crimson Cup.
Fox Hollow recommends purchasing land and putting up a real stick built building.
Crimson Cup says that isn't necessary-lease land and have a modular building constructed bya contractor.
What kind of ACTUAL CASH do I need to have of my own to even consider doing this?
Do you really need to sell at least 300 cups a day to make a go of it?
Do economy ups and downs affect coffee sales?
Thanks for any input. It's greatly appreciated!
I have submitted a business plan to the bank and am waiting for reply.
There are NO double drive thrus in my city of 65,000 people.
COFFEENOVICE
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View entire thread: Foot Traffic Research
Posted by John P on 2008-11-10 19:40:13
Post Subject:
Mies,
a very astute observation. A negotiator once told me a story about leasing a property in the West Edmonton Mall, the largest shopping mall in Canada.
The property manager said, "You will have over a quarter million people will pass by this space every month."...
"Ah," the negotiator replied, "but how many of them are carrying bags."
Exactly as you thought, foot traffic does not necessarily equate to sales, or more specifically coffee sales. The key factors in the spot should be visibility, accessibility, and 'Do people want coffee here?'... Or 'Will they come HERE for coffee?' One is a little more convenient, one is a destination. If you can have a place that 's both, it's a winner. And in a downtown location, shoot for the smaller space if you have the option.
A Billion people in India, but I wouldn't open a McDonald's downtown.
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View entire thread: Does anyone actually make money on drive-thrus?
Posted by elanmike on 2006-04-25 18:16:02
Post Subject: There is money in Drive-thru
We have been running drive-thru coffee stores for 10 years. What saved us a good deal of money was purchasing a used building for our first sight. Drive-thrus were not in our area at the time and we wanted to "test the waters". It proved to be a successful site and saved us a good deal of capital up front. The key is location and visability! Find an accessable lot and check with your local municipalities about license/regulations/codes.
We have a buildings for sale: All steel, air/heat, 9 x 15 ft., self-plumbed; for a trailer or cement pad . I will also say that good dependable employees also help to gain regulars - which is what coffee sales are all about! elanmike@yahoo.com
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View entire thread: Restaurant wants equipment as well as coffee
Posted by Michael V on 2008-10-11 13:11:29
Post Subject: Restaurant wants equipment as well as coffee
New roaster here. So far I''ve only sold 1 pound of coffee and that was to a friend.
Did some walking around and talked to a restaurant and a couple grocery stores. The restaurant said they were willing to do a taste test with customers but if they went to me that I would have to provide all the coffee equipment along with the beans.
Is this the normal way things work? I was hoping to stick with just the beans... If I supply the equipment, do I increase how much I charge per pound of coffee? What is the going rate for business to business coffee sales? I was thinking $5/lb if less than 30lbs/week, $4.50/lb if greater than 30lbs/week for Colombian Supremo. If I supplied the equipment would I bump up the prices or just take it as the cost of doing business?
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View entire thread: Customer count projection review support request...
Posted by John P on 2007-04-12 17:55:27
Post Subject:
I never much saw any relevance in traffic counts.
That being said....
What's relevant are the actual percentage of coffee drinkers who stop in your area. I would find the traffic count for the relevant streets for a 'competitor' in your area. I would then watch them from opening for about an hour and a half on Monday, one midweek day, and Saturday and do a customer count of who goes in the store. Even better to be a customer and count who actually purchases--because two people could mean 1 drink, or it could mean 5 drinks. I would scope out middle of the day and evening under the same scenario. What's important is capture rate for your particular area resulting in coffee sales. Gross generalizations, even altering the percentages, usually lead to---well---- gross generalizations. To best understand your local clientele, its best to study your local clientele
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View entire thread: mobile espresso operators....
Posted by celement on 2005-06-16 23:58:52
Post Subject: 20% of Drink Volume
In terms of actual drinks sold its 20% in terms of volume of dollars or gross sales its far less.
Also we now have a good delivery business going and there is almost no brewed coffee sales in deliveries...its all cold and hot mochas, lattes and capps...
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View entire thread: Sales Decline?
Posted by Alun_evans on 2008-08-08 19:14:36
Post Subject:
I was wondering when someone would post something like this- many of the other forums around the place have been debating and discussing the effect of the recession in the US for a while now. In brief we hslow down in coffee sales, first 1/2 was also good for machine sales. However, obviously we are like on the very end of the tail of this thing- meaning the slow down globally has not reached us yet.
Interestingly, reading about the great depression recently, coffee was one of the very few sectors that did not suffer a slum in the 1930's. Iwould not say coffee is recssion proof- but I guess those of us who drink coffee (and pay for it) probablywould cut back on other luxuries before going cold turkey. But 1 thing that we may see, and maybe ourcoffeebarn has hit the nail on the head here- perhaps docket averages will drop a bit.
One interesting debate I have been following on another website is about whether now is a good time to be opening a cafe/coffee shop- especially with all the negative data pointing to higher unemployment, equity issues, dropping retail sales, foreclosures....etc. The Starbucks closures (600 in the US and 2/3rds of all stores in Australia) has got many potential investors and/or opperators nervous. Their (Sbux) poor second 1/4 results have also fuelled the fire. However... I think many of that companies problems are related more to opperational issues and perhaps consumer changes than to the economy. At the same time as SBUX was announcing its first 1/4ly loss since 1994, Peets Coffee was announcing a solid profit and increase in sales.
I guess, hopefully rightly,that most of us are still doing fine with coffee and cafe sales- fine meaning growth not stagnant. I would think that yes, the equiptment side of the business may be a little flat at present- due to perceived uncertainty amngst new entrants into the market and a wait and see from established opperators. However I would think the US in particular has a long way to go until the coffee market reaches saturation. I dont know the numbers in the US, but in Italy there is 1 cafe/coffee shop for every 400 Italians. Coffee has ALWAYS been a very big part of American life (Mark Pendergasts "Uncommon Grounds" is an excellent insight in to just how important a part coffee played in the country last century- worth a read
)
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View entire thread: Questions about coffee business
Posted by zebiandi on 2005-09-21 18:53:27
Post Subject: Questions about coffee business
Hi everybody,
I am brand new on your site, and also brand new in the coffee business... that means I didn't start one yet!
So, I am just looking for advices, guidance because I really think I would enjoy owning my own coffee shop.
My business experience is not too good, so I am looking at some franchises now... And here comes the first question:
1. Does anyone know anything about "Second Cup", "Blenz", "Maui Wowi", or "Scooter's Coffee House" ??? Any direct experience, anyone that is already a franchisee at one of these companies???
The other question... A friend of mine is starting a distribution business with a company called "Cafe Del Rey".
It is mostly about placing some display racks in stores and making money when people actually buy that specific coffee... What I mean is that he does not sale the coffee to the stores, he just places the coffee in stores and makes money only when the coffee sales. This looks to me almost like a vending machine business... And here is the second question:
2. Anyone ever heard of this company, or of this way of selling coffee???
Well, that's it for now, I am impatiently waiting for your answers...
Thanks
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View entire thread: G'Day from Down Under - TIPS TO INCREASE COFFEE SALES
Posted by Ripstar on 2004-07-21 22:35:50
Post Subject: G'Day from Down Under - TIPS TO INCREASE COFFEE SALES
Hi Fellas,
i have been looking for a Coffee Shop to buy for months now and finally found the place. It isnt perfect, but it has HIGH TRAFFIC (foot) in a busy shopping centre. The price is a good one and i already see 4 major areas of improvement to boost sales. Oh and for Coffee Lovers (all of you), they make an ok 'cuppa' (room for improvement thats for sure).
Anyway, i thought i would ask you ppl WHAT TIPS WOULD YOU HAVE TO INCREASE COFFEE SALES? all ideas would be great so gimme ya secrets pls
note - i am 20 metres away from Gloria Jeans Coffee which is a huge hit here in Australia. nothing like a little competition!
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View entire thread: Coffee Sales
Posted by Alun_evans on 2008-10-13 22:36:47
Post Subject:
This issue has been talked about alot on various coffee sites around the net. It is a serious issue we are all facing, and the fact the market has somewhat rebounded actually has no effect on the fundementals- a growing unemployed AND underemployed rate, mortgage issues and soft, soft consumer sentiment in regards to retail.
From my perspective I have noticed a slow down in machine sales and enquiry. Obviously it takes a brave punter to be pushing ahead with a new venture right at this moment in time. However coffee sales remain strong and are growing. The general consensus on things is coffee sales are somewhat resilient- they were during the last (hopefully last) depression in the decade running 1929-1939. Coffee remains an affordable luxury, as well as being prt of the social fabric in countries such as the US. However... we have never been in quite the economic mess we are in at present. So, its very hard to predict the short to medium affect of right here-right now.
Globally coffee sales also seem OK. The Australian Government has just today released a stimulus package of A$10 billion which goes for the heart of trying to prop up consumer spending (from retail through to real estate). I think the realisation is that governments must address Main Street as well as Wall Street- meaning if the cafes, barbershops, bars, corner stores start to struggle... all the efforts to prop up the top will come undone in quite a spectacular way.
In the meantime I think we all need to focus on what we do well- customer service, quality coffee and of course keep positive. StarState8 hit on the power of negativity and/in the Media. Negativity spreads pretty fast, so doing all well and maintaining the business over the next 12-18 months I think is paramount to getting through all this.
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View entire thread: Daily sales
Posted by John P on 2007-07-27 12:14:37
Post Subject:
Qban,
Sorry for my answer, but as a pretty good rule those who start fixating on sales at this stage of the game generally miss the larger picture.
Top sales? Look at Intelligentsia, Stumptown, and Caffe Artigiano for starters. Last time anyone made mention, Stumptown was going through 100# of espresso per week in their couple of stores, this doesn't count any coffee sales, whole bean sales, etc,. In terms of dollars, extrapolate and do the math, or call up Duane or Stephen Vick and ask for a ballpark figure. They're all pretty straightfoward guys. And remember these independents, or even Jack Groot over at JP's coffee in Michigan, have been around 10+, 15+, even 18 years and it took time to build their great sales machine.
I've listened to Doug Zell talk about Intelligentsia and despite their 300+ wholesale accounts and couple of locations in Chicago, it wasn't until the past couple of years they were making any serious money. But sales... plenty of that... they just choose to invest a very substantial amount back into their company, into pushing the envelope by sourcing phenomenal beans, helping sustainability, providing exceptional training for their barista, etc. And all top tier independents do this sort of thing... this is why there are only a handful of them, because most owners want to make money 'right now' and forget it's a long term thing, and that it should above all else be about the coffee.
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View entire thread: How price sensitive are customers?
Posted by Crazy4Coffee on 2008-09-26 14:00:44
Post Subject:
it sounds like kc1's business is not coffee focused, but food focused. That in itself is probably the primary issue with why coffee sales are hovering around 3% of total sales. The coffee offered is a companion product, and not the primary destination of the shop. That 3% is relatively common for a shop based on food sales, with companion products such as coffee.
Bingo!
Starbucks is not the first place that pops in your head (if ever
) if you want a sandwich, and likewise, Subway is not a place you think of (again, if ever) if you want a latte.
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View entire thread: How price sensitive are customers?
Posted by John P on 2008-09-26 19:22:12
Post Subject:
As I mentioned,
I would only advise this if you want to make coffee an equal, or greater "partner" in your offerings. If it is an afterthought, even a good one, it just won't work.
More the "we have the best latte in town"... as opposed to "we also have great lattes".
If the location and demographic allow for greater coffee sales, where, even if sales overall are lower, profitability will be higher-- then you may want to rethink the direction and focus of your business. Any half-hearted attempt is just going to lead to more frustration. In short, if you want any significant change in coffee/espresso sales, you need to refocus the core of your business.
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View entire thread: Coffee in hotel industry - please help
Posted by javahill on 2006-02-10 22:59:04
Post Subject:
Most of what we've worked with is just direct selling not responding to RFPs, so no, I don't have anything I can share.
There are going to be a few components.
The opportunity:
Dining, in-room, catering (meetings), conferences, lobby coffee, in-room and gift shop. You'll need a volume estimate for each.
Equipment and service.
You'll also need different brewing and serving solutions. The equipment requirements can get heavy, especially if they need espresso. How are you going to service the equipment with what response time? If any part of a hotel does not have coffee, it gets ugly fast.
Training
If you have espresso certainly and possibly other brewing solutions, you'll need to provide training. This is a relatively high turnover indsutry so you will likely need to make an ongoing training commitment.
Delivery
Depending on the hotel, they may be able to take a delivery from one of your trucks. They may require/prefer you to go through one of their current distributors. There will likely be restricted delivery hours, just like most supermarkets. You need to understand what you will deliver to where when and how often.
Merchandising.
If the hotel is going to be spending more for your coffee, they need to be able to communicate that to their guests. How are you going to support coffee sales in a way that fits with the overall positioning and look of the hotel.
That's all I can give your way. The only other advice I have is don't overextend yourself. In my experience, these can be very demanding, low margin accounts with longer pay-back times. The good news is that once you hvae them, they tend to stay. Unless Starbucks comes in. Then they get very, very expensive to hang onto.
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View entire thread: How price sensitive are customers?
Posted by roaster dave on 2008-09-26 07:39:43
Post Subject:
Here's a quick rundown... for specifics there would be a fee.
I would only advise this if you want to make coffee an equal, or greater "partner" in your offerings. If it is an afterthought, even a good one, it just won't work.
You can't compete on speed. Don't try. And too fast denotes low quality.
Compete on quality. Freshness. Educate by the cup.
Drop smoothies.
Drop loyalty cards.
Local roasted, fresh, GREAT quality beans.
Raise barista skill.
Learn latte art... if you haven't already.
Raise prices.
You now have re-positioned yourself!
A lot of what you said really depends on your customer base. I've had the misfortune of watching a few coffee shops go down the drain this year after they made some drastic decisions based on information like that.
Just be careful of how you implement it.
Alot of what John P has said definitely holds true, however.....it sounds like kc1's business is not coffee focused, but food focused. That in itself is probably the primary issue with why coffee sales are hovering around 3% of total sales. The coffee offered is a companion product, and not the primary destination of the shop. That 3% is relatively common for a shop based on food sales, with companion products such as coffee.
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View entire thread: Coffee Sales
Posted by John P on 2008-10-15 19:42:24
Post Subject:
with the weird weather this year in Salt Lake, our hot coffee sales have had a later jump than last year, and we are only up 2% vs. this time last year vs. the usual 12-15%. On the good side, whole bean sales are up dramatically, and as fall is finally here the jump in coffee sales is noticeable, but not dramatic.
Overall, our sales are up, and we've found that people still spend the same amount, they just might come less often..... possibly psychological, possibly due to travel expense. So when we look at our numbers, WHAT we do in sales is good, but the WHEN is less predictable.
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View entire thread: Traffic formula
Posted by Anonymous on 2004-10-09 00:54:51
Post Subject: E-Imports Drive-Thru Start-Up Guide
If you are interested in learning more information about opening an espresso drive-thru business, please look into the informational guides offered at www.e-importz.com
------------------------------------------------------------------------------------
E-Imports Drive-Thru Start-Up Guide
Searching for information regarding opening an espresso drive-thru business? "E-Imports Drive-Thru Start-Up Guide" is the first practical guide designed for achieving extraordinary success.
Composed from many reliable sources, including the Specialty Coffee Association of America (SCAA), our valuable "Drive-Thru Start-Up Guide" contains powerful successful techniques revealing the steps and strategies for charting an unconventional path to success.
http://www.e-importz.com/E-Imports_Driv ... _Guide.htm
---------------------------------------------------------------------------
Successful Drive-Thru Operations Guide
Is there a secret to sustaining prosperity in today's competitive business environment? The answer is Yes; Ongoing organizational improvement.
If you are in the start-up phase, or need to make dramatic improvements in productivity, quality, marketing, planning and customer service and satisfaction; than our Successful Drive-Thru Operations Guide is the perfect source for you.
http://www.e-importz.com/Successful_Dri ... _Guide.htm
---------------------------------------------------------------------------
Specialty Coffee is America's Hottest Growth Industry and the demand is growing at an unprecedented rate.
Specialty coffee sales are increasing by 20% per year and account for nearly 8% of the 18 billion dollar U.S. coffee market.
Among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day.
At the present time there are approximately 8,000 Coffee Shops across the country. There will be approximately 12,000 Coffee Shops by the year 2005.
The average price for an Espresso based drink is $2.45.
The average Espresso Drive-thru Business sells approximately 200-300 Cups of Espresso and Coffee Based Drinks per day.
---------------------------------------------------------------------------
More information and statistics can be found at:
http://www.e-importz.com/Support/specialty_coffee.htm
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View entire thread: Buying and existing business
Posted by kc1 on 2007-10-28 03:40:06
Post Subject:
That COGS looks high but could be poor pricing or high wastage/pilferage. My business is food led with a very small proportion of coffee sales and still runs at sub 37% COGS. If sales are mostly in coffee, COGS should be around the 20% mark. Payroll costs % are about right. Ignore the cost of the equipment when valuing a business like this - it is as good as worthless for resale purposes and the value is all in the cash generation. I'm not sure about 5x EBITDA for valuation - 12x is current EBITDA multiple for exit transactions in UK. More importantly, what are you going to do to 'fix' this poor performing business. How are you are going to increase sales? What are the main challenges? How are you going to run a specialist business with no prev experience - are you going to buy this in? etc. etc. This business is certainly is not worth asking price.
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View entire thread: Help generating traffic to online store
Posted by datazing on 2005-06-08 02:40:32
Post Subject: Help generating traffic to online store
Hey guys,
We have been custom roasting 100% Class 1 Specialty Grade gourmet beans for a few years now for local customers and espresso stands. Recently we upgraded our site from just an info type site into an e-commerce site. Im having trouble getting into Google and Yahoo. All our sales are coming strictly from Googles Adwords program. Its been about 6 weeks since we put our site up and im still not seeing us in Google or yahoo (except for Craigslist cached pages). Ive used Trafficzap's search engine submitter and Submit Express's URL submitter about 6 weeks ago as well and im still not popping up in search engines. Anyone have any suggestions? We really wanna get the ball rolling with online coffee sales. We know we have a killer product and now its just a matter of trying to get into peoples cups and letting them taste the difference. thanks a million fellas!
Seattle LIVE! Roast Coffee
http://www.SeattleLiveRoastCoffee.com
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View entire thread: Help generating traffic to online store
Posted by Donya on 2005-07-08 16:27:01
Post Subject: Re: Help generating traffic to online store
H!
Try link exchanges also.
It is slower but works.
Good luck!
Hey guys,
We have been custom roasting 100% Class 1 Specialty Grade gourmet beans for a few years now for local customers and espresso stands. Recently we upgraded our site from just an info type site into an e-commerce site. Im having trouble getting into Google and Yahoo. All our sales are coming strictly from Googles Adwords program. Its been about 6 weeks since we put our site up and im still not seeing us in Google or yahoo (except for Craigslist cached pages). Ive used Trafficzap's search engine submitter and Submit Express's URL submitter about 6 weeks ago as well and im still not popping up in search engines. Anyone have any suggestions? We really wanna get the ball rolling with online coffee sales. We know we have a killer product and now its just a matter of trying to get into peoples cups and letting them taste the difference. thanks a million fellas!
Seattle LIVE! Roast Coffee
http://www.SeattleLiveRoastCoffee.com
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View entire thread: Just opened... not sure what to think. Advice?
Posted by Tophie2 on 2008-11-07 15:07:24
Post Subject:
Sunrise Coffee yes this is our 3rd week open, everyday sales increase and I have 90% coffee sales. My blog is under coffee shops & cafes, tiled this goes out to pug.....etc. I have been trying to get a site for my pics to post.
lol
Chris
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View entire thread: Just opened... not sure what to think. Advice?
Posted by kcooley on 2008-11-09 22:31:12
Post Subject:
Thanks for all the replies. I am very thankful for our sales and I was more curious about day-to-day fluctuations. I assumed I could expect a slow increase each day. Have you guys noticed that certain days of the week are better/worse?
My concept started as a frozen yogurt shop, but when I got to thinking, I realized that there are no coffee houses anywhere around. So, I added coffee as a way to increase sales. So far, I have been very disappointed with the coffee sales and we pretty much have no traffic in the AM's. I can see where if I were just doing coffee, I'd be in big trouble.
Regarding the yogurt, it is selling very well and the COGS is probably the lowest you can get with food.
Anyway, thank you and good luck!!!
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View entire thread: Just opened... not sure what to think. Advice?
Posted by kcooley on 2008-11-21 11:58:25
Post Subject:
Well, I had enough time to go through the entire month and break down our sales by hour. So, you can imagine, not very busy.
Our sales our averaging around $350 during weekdays and 550-600 on Fri-Sun. I'm not complaining, since I was expecting it to take awhile to break even. But, I do wish we had more coffee sales. I'm having two girls stand out there Monday morning. (I had to get the signs made, or I would have done it earlier.) From the hours of 6-9 AM I am only averaging $54. Up about 10 dollars from the previous week, but still pathetic.
I paid about $300 to be on the first spread of a direct mail advertising book and only got about 5 coupns back. Spend $5 - get $1 off. 
After we do the signs on the street and a coffee tasting, I am out of ideas. I'm starting to wonder if these people even know what espresso is. 
You?
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View entire thread: Location Synopsis - Give me your Feedback
Posted by cafemakers on 2005-09-09 13:08:34
Post Subject:
alright i have been a professional chef for 13 years in 7 different states,
Not true at all!!!! If you figure your food costs down to the proper percentages and you do a lot of in house prep ie slice your own meats and bake off your own pastries, then you should put the same amount of money in the bank from a gum ball as you do a coffee drink or a sandwich.
In fact adding a selection of pannini and fresh baked pastries will increase your average ticket per customer and again if your prices are set right you will put more in the bank.
KEEP YOUR LABOR COST DOWN?sorry bro but your gonna have to work the place all by your self for a while, unless your married or can take on a partner.
If you need any help or have any questions on how to price your items let me know!!!!
Whereas the traveling chef's credentials are surely impeccable, we cannot endorse these ideas - this is not good business sense. The majority of successful coffee shop locations are designed to be just that, coffee shops, and are not intended to be wholesale bakeries or delicatessens.
Although it is often advisable to offer baked goods and a small selection of food products that will compliment your coffee sales, it is not practical to assume that all coffee shops are suitable to maintain a wholesale bakery or full kitchen on-site (particularly a combination coffee shop and bakery staffed by one (1) employee!). With an gross margin of 70-75% on specialty coffee products sold, it is unrealistic to expect that you can maintain the same profit margin from a muffin or other pastry provided by an outside supplier.
...this is before we even ask what happens to the business when the lone owner/operator falls ill, wishes to take a day off or needs to go to the bathroom during the work day. Placing such demands on oneself is prohibitive to the growth of your business; if you are solely dedicated to the task of operating your business, you can never improve that business location, let alone have the time to expand to new locations.
The larger remaining issue is still the traffic volume that is simply not available to support this business to any reasonable level of profitability.
You are welcome to take the advice of the meals-on-wheels fellow, but we still believe that the venture will be a poor investment.
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View entire thread: Question for MUDDY CUP
Posted by dant on 2006-09-22 20:30:12
Post Subject:
I don't know about muddy cup but we offer 2 sizes, 12 & 16 ounce. It's handy not to have to mess around with a 3rd size and people seem happy with what we offer.
On the other hand, if we offered a 20 ounce drip coffee (which seems like a lot of coffee to me) for an extra 25 cents I suspect we'd sell 50-100 20oz cups a day (10-20% of our current daily drip coffee sales volume). That's an extra 5-10,000/year in sales of a high profit margin product. Am I dumb not to do this?
Gluttany kind of goes against my principals & I get frustrated with restaurants constantly trying to supersize you. But that extra sales for the next 15 years could pay for my kids college.
Any thoughts?
-Dan
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View entire thread: Coffee Sales
Posted by starside8 on 2008-10-13 14:54:27
Post Subject: Coffee Sales
What I'm curious about is how coffee sales are going right now? During all of this negativity in the media and the liklihood that most people are penny pinching, how is everyone doing? My store is active, but sales are a bit slow right now. We're marketing like crazy, but it doesn't seem to be making a difference.
Thanks...
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View entire thread: Coffee Shop Financials Check
Posted by SunriseCoffeeLasVegas on 2008-09-30 01:27:10
Post Subject:
Wow. I think your cost of goods is pretty high and that might be one of the reasons for a low profit margin. Are you getting those margins from coffee sales or food? If it is from coffee, finding solutions to help control your costs would be a start. Are most of your profits from coffee or food?
With labor and overhead, the cost of goods should hover no more than thirty percent to produce decent profit margins.
I am this close to opening and have invested some time into controlling costs without hurting taste. Just by making drinks more efficiently saves pennies here and there which adds up.
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View entire thread: Coffee Sales
Posted by caffe biscotto on 2008-10-24 05:21:17
Post Subject:
"Re.......ion"? What "Re.......ion"?
Biscotti sales are way up from this time last year so coffee sales must also be up. The price of fuel is down. Houses are cheap and interest rates are low. Most of my friends have two jobs, me included and I see Help Wanted signs every day.
Fear is like yawning, it's contagious. It's like when someone hears something in their house at night, everyone panics and grabs the nearest thing they can find to hit somebody with.
Kill it!!!!!
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View entire thread: Coffee Sales
Posted by Alun_evans on 2008-10-14 20:38:22
Post Subject:
Indeed coffee is the fuel to keep all those stressed bankers and traders from collapsing in a heap from lack of sleep. A friend in Sydney emailed me to say that takeaway coffee sales down in the CBD have gone through the roof, the suits are desperate not to miss a minute of what looks like it could be a 12 month horror movie- Wes Craven would be proud of. My friend did not mention popcorn or movie tickets, but with this sort of rollercoaster ride its cheaper to sit at home and watch things on Bloomsberg or CNBC. He did mention heavy alcohol sales (whisky, bourbon etc) has also skyrocketed. If the caffeine is too much, I guess you need something to also soften the pain with
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View entire thread: Coffee Sales
Posted by Alun_evans on 2008-10-23 20:35:44
Post Subject:
Coffee is still a product that fills a need. I dont think this will change, infact a "Re.......ion" may actually incease coffee consumption- whether this be by the cup, or by the retail pack sold to be taken home, ground and consumed there. I think the area to be careful of when opening a new cafe at present is the food costs. What I hear from people I know around the world who are running cafe businesses is food sales are flat or lower than a year ago, coffee sales are up. Of course food costs can be a huge albatross around your neck- so managing these carefully is probably more important than it ever was.
I also think that as has been said so many times here, and on other forums, the key to this business is a good part passion- mixed with an attention to detail that covers quality, service and great product!
There is a good article Andrew Hetzel posted out recently. Its worth a read> http://www.supermarketguru.com/index.cf ... ticleId/61
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View entire thread: Cafe concepts...
Posted by cherylann324 on 2007-03-13 09:13:32
Post Subject:
Hi Pectopah!
I am in the planning stages of my coffe cart business, and I do think your vision is important.
First, the scale of your business is the first consideration, I think. From what you have said it will be relatively large and expensive. That will orient your vision closer to fine dining and perhaps a more sophiscated theme would be what you are looking for.
Combining alcohol sales and coffee sales is a different approach. I am wondering if the two really mix well? I think of myself and my friends when I think of a marketing approach, and I don't go to the same locations for both. But maybe that is because I don't have a coffee shop that I really like that does both here where I live. And I live in Asheville, NC which is pretty diverse and culturally oriented for this area.
But I can see the possibilites. One of my favorite coffee shops is located where the both could be combined, I'm just not sure how well the alcohol sales would be, and I don't know if the layout would lend itself to easy mixed drink preparation because of the space limitations of the bar area.
I am sure you have already thought all this through. My point is can I see me and my friends going to the same place for both? Probably not. The coffee shop and the drink spots are unique and we go to each for that very reason.
But as far as your vision - that should come from who you are, what you like, and what means something to you. Don't try to be like any other establishment. The ones that are completely different and manage to carry it off from concept all the way through delivery are the ones that I personally enjoy the most. PERSONALITY of the establishment is the vision.
Good Luck and let us know how your vision develops!!
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View entire thread: Drive thru ???
Posted by equus007 on 2006-06-22 14:39:47
Post Subject: girls girls girls
do not be so quick to change your staff based on their gender. One you are opening yourself up to a nasty lawsuit that you WILL lose. Two the perception that cute girls raise coffee sales is just dead wrong. Most of my experince tells me that as long as your employees are clean and presentable it doent matter especially in a drive-up environment. Though it is pretentious to say it baristas are often viewed in the same light as chefs and for some reason men are percieved as more professional, more personalbe and more dependable(please don't shoot me for saying this). Keep in mind too that while men tip more women tend to spend more on product. If you are truely thinking of going with a gender biased hiring practice you would be better served to hire studly Frat boys than cute beach babes...I will bring in more women and gay men. The more women who are seen in your shop regularly the more men will come in.
Sorry to be so negative about this...I'm sure you are only trying to do what is best for your business.
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View entire thread: Your monthly lease payment amount?
Posted by cherylann324 on 2007-04-16 14:35:38
Post Subject:
Hi CFGuru,
You are already looking at lease options and don't have a sales estimate for your intended location? That should come first. What are your demographics for this location? DOT? Other businesses? Your success will depend heavily on how many customers have access to this location on a daily basis. Have you done a personal traffic count?
Every location is different and lease prices corresondingly. You should be able to support $40,000 a month in sales to be able to lease this property or it is not the best location for YOUR business. The averages are 10% of gross sales, you should abide by that or take a higher risk factor into account when choosing your location. A higher risk may pay off, or it may not, and for a new business that is terribly important. That is what fredK is saying.
No one can tell you if your lease is too high or good enough. Your sales projections will tell you that. A high lease price (this is high) should mean that high coffee sales will follow. Some locations justify that, some do not.
Sales projections based on adequate demographic counts have to be done for every location you are evaluating. New locations away from any comparable businesses should include DOT counts and any similar businesses nearby. That means sitting in their parking lots and counting their customers! Perhaps you could also do some sort of survey?
Good Luck and let us know how it goes!
Cheryl Ann
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View entire thread: Guerilla Marketing Ideas
Posted by momof3qc on 2006-10-13 07:18:04
Post Subject:
Excellent topic! Especially now that we have a serious decline in ice cream sales and have yet to see the coffee sales catch on.
Just last night I delivered my tri-fold brochures to a very popular local pizza joint who have offered to staple them to each delivery. However, I wish I had seen your post first because I never thought to put a coupon with the information. Ugh....
I've also made some small posters with different promotions - for example, I've offered the police department free coffee for the month of October. They frequent the dry cleaning business right beside my shop, but have yet to come in for coffee. There's also "free coffee with the purchase of a baked good" for preschool moms between 10 and 11am, lunch special (soup and crusty bread) for teachers at the local schools. I've just put these out this week, so I don't have anything to report yet.
Anxious to hear more ideas!
Kim
Buddy's Ice Cream Cafe
Montreal, Canada
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View entire thread: Coffee Shop with Books
Posted by Anonymous on 2004-10-09 01:00:55
Post Subject: books?
Barnes and Nobles not only sells books, but also serves Starbucks coffee.
I think this is an excellent idea; however, competition is pretty tuff.
Amazon.com and Half.com are online places where most customers buy books from; not to mention that their prices are unbeatable.
If this is your first business, you may want to focus on offering only one product/service and go from there. The specialty coffee industry is something that you should stick to.
---------------------------------------------------------------------------
Specialty Coffee is America's Hottest Growth Industry and the demand is growing at an unprecedented rate.
Specialty coffee sales are increasing by 20% per year and account for nearly 8% of the 18 billion dollar U.S. coffee market.
Among coffee drinkers the average consumption in the United States is 3.1 cups of coffee per day.
At the present time there are approximately 8,000 Coffee Shops across the country. There will be approximately 12,000 Coffee Shops by the year 2005.
The average price for an Espresso based drink is $2.45.
The average Espresso Drive-thru Business sells approximately 200-300 Cups of Espresso and Coffee Based Drinks per day.
---------------------------------------------------------------------------
More information and statistics can be found at:
http://www.e-importz.com/Support/specialty_coffee.htm
---------------------------------------------------------------------------
E-Imports Drive-Thru Start-Up Guide
Searching for information regarding opening an espresso drive-thru business? "E-Imports Drive-Thru Start-Up Guide" is the first practical guide designed for achieving extraordinary success.
Composed from many reliable sources, including the Specialty Coffee Association of America (SCAA), our valuable "Drive-Thru Start-Up Guide" contains powerful successful techniques revealing the steps and strategies for charting an unconventional path to success.
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Successful Drive-Thru Operations Guide
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View entire thread: Coffee Shop with Books
Posted by Coffee Cup Joe on 2004-10-09 22:59:50
Post Subject: Cash is King
My sources always tell me that cash is king in business.
It might be worth taking a look at your numbers before deciding. It seems the more prudent thought is to develope the coffee business first. With that kind of traffic flow and a nearby college, it seems like a slam dunk feature. And then the development of the book venue might make more sense. You can fund that with the coffee sales.
Here's a thought for you. Depending on the size of the college, maybe buying used text books for resale is a safe way to start.
I once stopped into the worlds largest new and used book store in Portland oregon. Its called Powell's Books. They may even be on line now. Not sure.
They do a thriving business. Have a small coffee serving area. And they keep it far enough away to keep "grab and lounge types" from abusing the setup.
It seems like if you build coffee in first, you may even find something that works far better than a half price book store to add later.
There is a book out titled "The Purple Cow" by Seth Grodin I believe. Read that book. It will help you in arriving at something unique to add to your business idea.
I would be willing to bet that the 26,000 cars in traffic are more coffee drinkers than book buyers.
It would be cool to figure out how you could put maybe four drive up windows in for getting coffee. Seems like half that amount would be there already since it was a Burger King. Almost like putting four micro coffee shops in under one roof. Then if business is not to heavy you just leave select windows open.
Consumers hate waiting in line. Oddly, most will sit three or four deep in a car line. Some will drive by the establishment once they see the line up for a single window.
If you build a reputation of having four drive up options to better serve your customers, I think you would have a whopping business model.
Sounds like the template for a booming place is there. And coming up with just the right type of business to add to the coffee outlet is the key.
If Burger King dropped his crown there, food must not be a draw for the area. So, do some hard studying of the demographics to figure out what your secondary business additive will be.
And remember, "Cash is King". Go with Coffee to start.
I wish you well.
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View entire thread: Startup Information
Posted by Ellie on 2004-12-28 18:11:43
Post Subject:
How did you come up with 38 cups to the pound? I am also doing research in advance of opening a coffee bar, and this info is helpful to me. I have been trying to get a handle on what product sales mix to use - out of total coffee sales, what percent could be expected to be espresso, cappucino, etc. etc. To the group: what have you experienced owners found?
Thanks for your input!
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View entire thread: Espresso Measurement
Posted by Chris Kay on 2005-02-02 19:03:32
Post Subject:
Tony because your seals are full of gunk when there is pressure water is escaping from the sides of the seals and dripping from the "top".
If you look at your filters youll find a line/ ring inside them near the top, thats where the coffee should fill to .
Youll get there.
Its about education and maintenance.
If you want to learn to do it correctly you will.
Your coffee sales will increase as a result.
Let me know if you understood what i said and if you did what i asked what happened.
Worst case scenario (hopefully ) youll just need a set of shower screens, seals and filters as well as a blind filter and puly. Sounds like alot but its not and when you know what youre doing your sales will sky rocket.
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View entire thread: Ice Cream----does it work in a coffee shop
Posted by AJPRATT on 2007-03-09 20:38:37
Post Subject:
I have also been considering opening the coffee house with gelato to offset the soft coffee sales months in the summer. There is really nothing in the area like this. The nearest coffee place (Starbucks) is 15 miles away, and the nearest ice cream place is 10. This is an untapped market here.
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View entire thread: Coffee Bean Review
Posted by Guatemalan Select on 2008-06-06 11:31:27
Post Subject: Thanks
I agree. This is really turning into quite a learning experience for me here in Guatemala.
Yesterday I met with a couple of my friends, one from Guatemala the other from El Salvador. They are both salesmen for the coffee industry. One sales coffee worldwide and the other sales processing equipment worldwide. The coffee sales person told me of his huge and I mean huge order that Japan is ordering. It seems that the coffee here in Guatemala won a cup of excellence award, but my friend went on to tell me that you can take the same bean, different roasting, different water temp for brewing, different grind and turn out 100’s of different tasting cups. It is interesting being on this side of the business…..you would not believe how much competition there is before harvest time here.
Jon
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View entire thread: javajoz.com vs. mountainmudd.com, coffee from kiosks model
Posted by Coffee Guy on 2004-04-02 09:53:19
Post Subject:
WOW!!!
Lots of info...In my humble opinion what works best is something simple. In other words the KISS method. There are those that wish to make their marks by buying into a franchise and spending the money to help the franchisor make more money. There's also those that wish to make a mark on their own and hopefully build something meaningful whereas they can feel a sense of personal accomplishment, and there are those stuck somewhere in the middle.
All of these operations have their place, if they didn't, they would not be around doing business. Personally, I prefer to assist those in achieving their dreams. For 10 years we've specialized in helping the little guy start their business, stay with them with not only equipment and coffee sales, but actually become close friends with each and continue to provide them with support. How many customers can reach their coffee company 7 days a week, even after hours? It's great to have the freedom of choice, even better to have many choices. It just all boils down to what works for you. If this sounds good to you without all of the hipe...visit our site sometime. This is a big industry and there are a lot of so called experts, but the one thing to keep in mind is to help your customer.
O.K. enough, I gotta go
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View entire thread: ideas please!!
Posted by equus007 on 2006-06-22 14:48:53
Post Subject: presidential suites
I really like javahills campaign coffees idea. Would be great fun to run a straw poll based upon coffee sales of specially suited coffee drinks(especially if you make the Republican brew taste like oil and blood...sorry). Also if you are able to get a liquor license there are tons of great espresso based mixed drinks you can do like chocolate espresso martinis...barenschlager(sp?) and shots...I've even tried a mocha margarita that was suprisingly good.
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View entire thread: Air roasted or drum roasted?
Posted by BeanGrinder on 2005-03-01 22:05:29
Post Subject:
Can I whip this dead horse on one more point? I don't think the practical aspects of roasters has been addressed much here. I have MANY things to pay attention to as a coffee shop operator. I roast coffee for my shop as well as bagged coffee sales and so on. Here's my point...
I started my shop with the Monster/Sonofresco. Nice - folks could watch their coffee roast and it got some attention. Then, one day the controller board blew out - no idea what happened. I was dead in the water. Next, the chaff collector (a glass container) broke and OUCH was that expensive to replace. The next thing to go was the delicate temp sensor on top. I just finished replacing that $75+shipping part. All of this within the first six months of owning this brand new technology. And cleaning? Jeez...this fluid bed roaster is nice, but you have to give it a sponge bath after almost every batch. After a couple of batches of espresso roast I have to take it apart and fully clean the whole thing! Especially the heat sensor...that is so delicate and yet MUST stay clean - build up on that probe will really throw off the roasting process. It's vulnerable, too...a tiny wire probe in the upper stack of the roaster. I can see how it is really easy to break. All of that to roast a 1.3lb batch of coffee.
I needed more capacity and bought a (nostalgic?) drum roaster. I have to say that I feel like I'm more in control of the roasting process. There is very little maintenance - I open the screw-down trap doors and vacuum out the chaff once in a while. Every other days I wipe out the cooling tray with a little PuroCaf solution. That's it. Now I'm roasting 4.75lbs per batch - I allow space for expansion, even though the capacity is 5lbs.
But here's the real cincher. My customers did not know that I had started serving drum roasted coffee, but the comments started coming in. Some of the regulars wanted to know if we had switched their coffee on them - because they really liked this new stuff! One customer actually said, "The taste of this coffee has more depth of flavor." Another customer said the exact same thing, only used the word "dimension". Why? I'm guessing it has to do with variable degree of pyrolysis in the beans. It is not as evenly roasted, which is why there is a more varied flavor. In a sense it's like post-roast blending two or three roast levels of the same bean, instead of having just one uniform degree of roasting.
I have to admit, I prefer the drum roasted coffee. At Topher's suggestion two months ago, I did a blind taste test and I could tell a difference. I had to try it - otherwise I'd be stuck with the nostalgia of the shiny metal drum and never know the "truth".
But the point of this long dissertation is to say that, for the vast majority of my customers, air roasted coffee is fine. There are a few who know coffee well enough to notice the difference, but they never complained about the air roasted beans to begin with. No, the point of my post is that there is room in the world for both types of roasters and not just room in a museum. Further, when considering a roaster, some consideration has to be given to the attention that the roaster will require and the cost to maintain it. I had a college kid working with my fluid bed roaster, but now I don't trust anyone to use it but me. I can't afford for it to be handled in the same fashion as the drum roaster.
But this will all be a moot point soon...I'm designing a fluid-bed / drum roaster...the best of both worlds! Hey, Maxtor...want to help me build it? I got the idea the other day when my wife made me do my own laundry. A perforated drum with forced hot air! I think I feel a new forum thread coming on..."Coffee Roasting in your Maytag"!
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View entire thread: Research on Opening a Coffee Shop
Posted by coffeedude00 on 2004-06-14 09:53:03
Post Subject: more info for you
Hey Coffeeguy -
I included the website so you could see for yourself.
Aside from being very friendly they have (I feel) gone out of their way to make sure all of my concerns are taken care of.
They assisted us in finding a location for our kiosk and then did the lease negotiations with the property owners, and got all of the city approvals for me (even attended the planning commission meeting!). The kiosk they are building has even been customized for the strip mall we are going in. They are helping us order all of our initial inventory and provide us with booklets of information on "how to's". They are also going to train us but in the meantime they have lots of info on what we can learn before hand -even down to accounting information.
Oh and the referral program....every person who purchases Mudhen kiosk who was referred by me, or saw my building, whatever, is considered my referral and I get 5% of the $84,500 license sale price. I talked to one building owner and he had four referrals last summer alone! So that's like $20,000 boost above and beyond his coffee sales.
Hope that helps! Off to run errands - I'll be back later!
Derrick
"the bean machine"
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View entire thread: Welcome, Introduce Yourself!
Posted by frizank2003 on 2004-02-06 14:49:08
Post Subject: hello
i'm new . wanted to say hello to everybody. Im a local community market weekend vendor and just recently started selling Select Gourmet Coffee in my booth. The coffee sales are starting off great. I joined to learn the most i can about the coffee industry, pricing, and for some startup website advice. thanks in advance for all your help!
thank you,
frank
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