Coffee Sales

[starside8]

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...

 

[Alun_evans]

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.

 

[ElPugDiablo]

I am not seeing any slow down in my shops. But a few coffee shops and restaurants in my area did close. I am not sure they will make it in the best of time. If you have good products, good services, good location and low expenses, you should be OK

 

[omegapd]

good location and low expenses,

I don't know the first thing about running a business or real estate but that sounds like the Holy Grail right there, huh? :lol:

 

[tlowing]

I talked to a guy who owns several Dunkin Donuts last week and he said sales were down only 2% compared to last year.

 

[PinkRose]

~
There are still many other things that people will decide to cut back on before they start cutting back on their coffee consumption. For example, I wonder how movie ticket (and popcorn) sales are doing now-a-days.

Rose

 

[ElPugDiablo]

good location and low expenses,

I don't know the first thing about running a business or real estate but that sounds like the Holy Grail right there, huh? :lol:

Are you saying they are mutually exclusive?

 

[Alun_evans]

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 :grin:

 

[John P]

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.

 

[starside8]

Is the wierd economy really affecting the coffee industry as much as other areas? I hear many business owners are feeling the pinch and we're too new to understand this trend. What are expectations for all of the veteren coffee shop owners going into this holiday season?

 

[SunriseCoffeeLasVegas]

I just opened my store today and I always thought with Las Vegas being a sound economically stable city that our store would not be affected. I hope this is the case because you guys are bringing me some hope! It gets scary hearing and seeing "RECESSION" everywhere when your trying to open a new store.

 

[Alun_evans]

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

 

[caffe biscotto]

"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!!!!!

 

[SunriseCoffeeLasVegas]

LOL.. that was funny biscotto!

 

[JohnB]

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 :grin:

A liquor store is a pretty safe investment. When times are good people celebrate & when they're bad they drown their sorrows.