grounds for success

1

Our guide to maximising your income from coffee

Grounds for Success

2 Our guide to maximising your income from coffee 3

The reason for this fact is simple. Restaurants, coffee shops and cafes can make good profits from the humble coffee bean and your pub is no exception.

In fact your pub, whatever its geographic location or customer type, is ideally suited to generating cash profits from coffee. You are already an experienced retailer of quality beers, wines and spirits so why not include coffee, tea and other hot drinks in your offer?

Whether you want to start or improve your offer, I hope this guide will help you see just how coffee and hot drinks can benefit your pub and how, with a little investment, you can maximise your income from lattes, espressos and cappuccinos.

In the following pages we’ll show you how to match the right coffee to the right customer, how to choose the right beans and machines and how to make a significant difference to your weekly bottom line.

There has never been a better time to start or upgrade your coffee because S&NPC are launching Bazar, a bestselling brand of coffee and teas that will only be available in the UK to our lessees, and we have negotiated some fantastic deals with leading machine supplier Cafe Bar.

So take a few minutes out of your busy day, pop the kettle on and let’s enjoy a really good cup of coffee...

Welcome to Grounds for Success

20

32

36Whilst every effort is made to ensure the accuracy and reliability of material published in Grounds for Success, neither the publishers nor Scottish & Newcastle Pub Company accept claims made by the contributors, manufacturers or suppliers. The views expressed by the contributors are not necessarily those of Scottish & Newcastle Pub Company. Copyright of all materials published in Grounds for Success remains with Scottish & Newcastle Pub Company. Articles may not be reproduced without written permission from Scottish & Newcastle Pub Company. All prices are current at time of going to press. Grounds for Success is published by Scottish & Newcastle Pub Company, Broadway Park, South Gyle Broadway, Edinburgh EH12 9JZ

Did you know that, after crude oil, coffee is the second most traded commodity in the world?

2 Welcome to Grounds for SuccessBen Bartlett introduces our guide to maximising your income from coffee.

4 Why should my pub serve coffee?If you don’t serve coffee you could be missing out on a valuable source of revenue.

6 Local newsTo make the most from coffee you need to know what competition and opportunities exist in your area.

8 What everyone wantsCustomer attitudes to coffee are changing.

12 Creating an artisan coffee outletHow to make the ‘Theatre of Coffee’ work for your pub.

14 Creating a convenience coffee outletHow to use the convenience coffee outlet model.

18 Creating a social coffee outletHow to use coffee to place your pub at the heart of your area.

20 Full of beans Introducing S&NPC’s exclusive Bazar brand of coffee.

24 Good grounds for profitsIntroducing a special offer on premier coffee machines from Cafe Bar.

26 Serving suggestions How you present your coffee is just as important as the beans and machines.

28 Snack attackHow to use food to boost coffee profits.

30 Growing coffeeStarting a coffee offer is just the beginning.

32 Coffee means business How to create a business friendly coffee offer.

34 Good to goHow to use take away coffee and food to boost coffee profits.

36 Coffee in the parkHow one South West London pub is using coffee to boost profits.

38 The next steps

Contents

Ben Bartlett Food Development Manager Scottish & Newcastle Pub Company

4


Special thanksS&NPC would like to thank leading market research company Allegra Strategies Ltd for their invaluable help in preparing this guide. Unless otherwise stated, the statistics and customer quotes mentioned in the following pages are drawn from Allegra’s independent and fully comprehensive coffee report, entitled Project Cafe-9 UK, published in December 2009.


Can I compete with high street coffee shops?Yes! Here are some complaints about high street coffee shop chains from a variety of different coffee customers:

— “Too expensive!” Male, 25-29, Public Sector.

— “The [coffee] shops are typically crowded and staff are rude.” Female, 16-17, Student.

— “They have sterile interiors and the coffee is not very nice.” Male, 18-24, Student.

— “The cafes are typically scruffy, cramped, untidy and the staff are under pressure.” Female, 35-39, Professional.

— “The stores have very plain interiors, staff seem stressed all the time and there is no atmosphere or sense of authenticity.” Female, 18-24, Professional.

Your pub is perfectly placed to avoid these pitfalls because you can offer:

— Better priced and better tasting drinks.

— Better and more comfortable seating.

— Quieter and more relaxing areas.

— ‘Authentic’ atmosphere and friendly staff.

— After all, pubs have been satisfying customers in all these criteria for centuries!

Pub type Coffee machine and style of offer

Additional food offer

Additional extras

Target customers

High street pubs — Fully automatic bean2cup.— Fast efficient service for busy working people.

— Pre-packaged cakes, biscuits and muffins.— Heat ‘n’ eat back bar pies, hot dogs and snacks.

— Take away. — Free Wi-Fi.— Newspapers.— Quiet area.

— Regulars and passing trade expecting good value for money coffee and snacks.— Take away especially important.

Suburban pubs — Fully automatic bean2cup.— More leisurely service for customers with more time.

— Pre-packaged cakes, biscuits and muffins.— Heat ‘n’ eat back bar pies, hot dogs and snacks.

— Take away. — Free Wi-Fi.— Newspapers— Quiet area.— Separate coffee area during day.

— Regulars and passing trade expecting good value for money coffee and snacks.— Drink-in as important as take away.

Aspirational pubs

— Hand operated espresso.— Chic, stylish offer for fashion conscious customers.

— Fresh-baked cakes, biscuits and muffins.— Freshly prepared hot wraps and paninis.

— Take away. — Free Wi-Fi.— Newspapers.— Separate coffee area during day.

— Customers prepared to pay a little extra for a premium service.— Drink-in as important as take away.

Food pubs — Hand operated espresso.— ‘Theatre of Coffee’ to match ‘Theatre of Food’.

— Fresh-baked cakes, biscuits and muffins.— Freshly prepared hot wraps and paninis.

— Take away. — Free Wi-Fi.— Coffee lounge.

— Customers who expect quality coffee to match quality food.— Drink-in more important than take away.

In 1675 Charles II closed London’s coffee houses as he believed they were used by traitors plotting his murder!

EXTRA SHOT

Coffee represents one of the highest margin products you can sell. A quality cup of coffee costs around 40p to make and can retail for a minimum of £1.80. That’s a net profit in your till of at least £1.40!

Hasn’t the economic downturn affected coffee sales?A recent survey published in December 2009 shows that most customers have NOT significantly changed their coffee drinking habits.

— 64% of consumers interviewed stated they visited a coffee outlet at least once a week compared to 67% in 2008.

— 53% of consumers claim their coffee shop visits have not changed compared to 2008.

— Only 20% stated they visited less often compared to 2008.

— 58% said price was NOT an issue affecting their visits.

The survey also found that:

— The average cup of coffee now retails for £2.04.

— The average customer spends between £3.30 and £4.45 in a coffee shop.

— The coffee market should grow by around 4.4% for the next two years at least.

So if you want to make money from coffee, the time to act is now.

If you don’t serve coffee you could be missing out on a valuable source of revenue...

Why should my pub serve coffee?

“Great coffee and good food make a great coffee outlet; I can go in the morning, buy porridge and a latte for breakfast and also buy food for my lunch there, as well as a newspaper. It's very near my office which is great for popping out.” Female, 45-49, Public Sector


But I run a pub not a coffee shop...Many lessees are reluctant to consider starting a coffee offer because they fear it would change the character of their pub and alienate regulars.

This is a genuine concern but, for a variety of reasons, customers are now drinking far fewer alcoholic beverages

during the day and instead turning to coffee. To maintain your income in the changing landscape of the pub industry you MUST consider coffee.

We'll take a detailed look at how different pubs can create a suitable offer for their customers later but here’s a quick look at how coffee can suit some different categories of pub:

7

Step 3: Prepare a plan to beat the competitionTake an hour or two to look around outlets in your area which already sell coffee and see where your pub could make customers a better offer; could you improve on...

— Price.

— Coffee quality.

— Atmosphere.

— Comfort.

— Food (cakes, biscuits and hot snacks).

— Extras (Wi-Fi, newspapers and business facilities).

Step 4: Prepare a plan to make the most of your opportunitiesJust about everywhere in your local area can offer an opportunity for coffee! Here are just a few ideas...

— School nearby – create female friendly coffee offer to appeal to mums on the school run both morning and afternoon.

— Business centre nearby – create business friendly coffee offer including Wi-Fi and quiet area for meetings.

— Sports centre nearby – offer decaffeinated coffee and healthy food options.

— Shops nearby – offer secure bag storage to attract shoppers.

— New building site nearby – open early, offer take away coffee.

— Church nearby – offer discount coffee and meeting areas to church social groups.

Step 5: Analyse your pub’s offerNow look at the pattern of customers using your pub during the day and see how you could use coffee to fill slow trade periods. In other words, your pub should subtly adapt its offer throughout the day to ensure the maximum footfall.

This is the so called ‘chameleon’ principle where a pub adapts its offer to attract different customer types at different times during the trading day. For example:

— Opening –11.30amShoppers’ morning coffee and tea.

— 11.30am –2pmOffice workers’ and business lunch meal deals with coffee.

— 2pm–3.30pmShoppers’ afternoon coffee and tea.

— 3.30pm –5.30pmSchool run mums’ coffee and cake specials.

— 5.30pm–7pm Commuters’ sundowners and coffee.

— 7pm –Closing Regulars’ evening entertainments.

As you can see coffee can play a key role in attracting customers throughout the day.

Of course the aim of the game is to use coffee to attract as many different types of customers to your pub as possible. So, in the following sections, we will take a look at what customers want from coffee and how to create three different types of coffee outlet to satisfy their expectations...

“I like interesting ingredients, quality ingredients and taste. More hot food would be good like soup or hot wraps.” Female, 18-24, Student

In Road to Success, a companion guide in this series, the benefits of using an area analysis to boost customer numbers was explained and the same exercise can be used to assess the potential for coffee in your pub.

Let us explain....

Step 1: Look at an Experian report for your areaObtain an Experian report from your BDM. This report is free and takes the form of a map with your pub at the centre. The report then identifies each commercial operation within a certain radius (usually 3 miles) of your pub and marks these on the map using a colour coded square.

Here is an example:

Step 2 identify your competitors and opportunitiesDivide the different commercial operations into competitors and opportunities. Coffee competitors would be:

— Other pubs and bars.

— Cafes and coffee shops.

— Restaurants and fast food outlets.

— Cinemas and theatres.

— Sports and leisure centres with catering facilities.

On the other hand opportunities would include:

— Conference and business centres.

— Offices and industrial estates.

— Schools and educational facilities.

— High street shops and small shopping centres without catering.

Local newsTo make the most from coffee you need to know what competition and opportunities exist in your area...

A57

BRADWELL

HOPE

A6187

A6013

Figure 1: Experian map

6 Our guide to maximising your income from coffee

“I don’t use coffee shops because the coffee is too bitter and the shops are not clean.” Female, 30-34, Manual Worker

Coffee was discovered by Ethiopian shepherds who noticed their goats began to ‘dance’ after eating beans from coffee bushes!

EXTRA SHOT

7

A recent survey asked a sample group of male and female adult customers what factors affected their choice of coffee outlet...

As we can see convenience is the main factor affecting a customer’s choice of outlet but we are not JUST talking about geographic location. However close an outlet may be, if it does not satisfy a particular customer’s needs then it is NOT a convenient outlet for that customer.

By definition, a successful outlet must appeal to as many customers as possible and it is important to remember that male and female customers have different expectations of coffee. Men see coffee as a daily necessity whilst women see coffee as a treat.

Therefore, to ensure maximum profits, your pub’s coffee offer should be tailored to appeal to both male and female customers’ expectations.

What everyone wantsCustomer attitudes to coffee are changing...


Male customers expect — Take-out coffee – 59% of men

regularly buy ‘coffee to go’ compared to 49% of women.

— Drink-in coffee – for periods up to thirty minutes men spend longer drinking coffee in an outlet than women. After thirty minutes the situation is reversed with women lingering longer over their latte than men.

— Eat-in – only 9% of men never treat themselves to a snack with their coffee. However more men choose savoury snacks than women so it follows you should offer hot snacks such as pizza, paninis and savoury wraps as well as cakes and biscuits.

— Socialising and relaxing – men tend to be single customers and prefer to work or read whilst women prefer to meet people and socialise. In either case a quiet area set aside for coffee is essential.

— Extra shots – men are far more likely to order ‘an extra shot’ to make their coffee stronger. Make sure you display an extra shot option clearly on your coffee menu and price these accordingly.

“I like coffee shops that sell more "proper" food - we don't all want just cup cakes! I like paninis or toast with my coffee!” Julian, 26, Plumber

99

56% 23%

7% 3%

10%

Convenience

Coffee quality

Atmosphere

Food quality

Other

Female customers expect — Presentation – proper presentation

is essential to creating the desired sense of indulgence that appeals to female customers so ensure you serve your coffee in stylish, correct sized cups and offer low-cal sweeteners and low fat milk.

— Eat-in – only 6% of women never have something to eat with their coffee so you must offer a range of quality cakes and confectionery. That said, women tend to be more health conscious than men so make sure you have plenty of healthy food options also available.

— Choice – women are more likely to treat themselves to a different coffee than their ‘usual’ so ensure you have plenty of tempting coffee specials such as hazelnut, chocolate or banana flavours.

— Atmosphere – many women still find pubs intimidating so, if possible, your coffee area should be away from trade areas where male customers gather and high traffic zones such as the loos.


Creating a strong coffee brandAs well as the above, 88% of regular coffee drinkers, both male and female, will choose a preferred brand of outlet over a rival in spite of the rival’s better location and 72% of coffee drinkers will stay loyal to that brand.

It is therefore paramount that you create a strong brand for your offer that will encourage customers to choose your pub over the competition. To do this you need the three Qs...

— Quality outlet.

— Quality drinks.

— Quality food.

To help you offer quality drinks, S&NPC are introducing the bestselling Bazar brand of Dutch

coffee and teas exclusively for our lessees together with a range of state-of-the-art coffee making machines from leading suppliers Cafe Bar.

We'll go into beans and machines in more detail later in this guide but in the meantime we need to discuss how to create a quality coffee outlet suitable for your pub.

In the next three sections we'll look at three different models of coffee outlet that we call:

— The artisan coffee outlet.

— The convenience coffee outlet.

— The social coffee outlet.

Of course your coffee offer should reflect the essential character of your pub and whilst some pubs will be able to offer elements of all these models, others may prefer to stick closely to one model in particular.

11

“The coffee brand I drink is a guarantee that I know I'm going to have a really good cup of coffee.” Sarah, 42, PR Consultant


Creating an artisan coffee outletHow to make the ‘Theatre of Coffee’ work for your pub...

This model is designed to work in aspirational or food pubs and is based around creating a ‘Theatre of Coffee’ where customers are:

— Prepared to travel a little further for a premium coffee experience.

— Prepared to pay higher prices for better coffee.

— Expect imaginative and adventurous coffee styles as well as traditional favourites.

— Expect fresh baked cakes, biscuits and other food.

What is a theatre of coffee?Everything about the artisan outlet, from grinding the beans to adding milk and sugar, is designed to be a performance that increases the value of the customer’s experience. This is the 'Theatre of Coffee'.

As you might expect this strategy comes from Italy, where excellent espresso is just as much a passion as fine food and wine, and when it comes to top quality coffee, the Italians insist on the three Ms:

— Macchina – the machine.

— Miscela – the blend.

— Mano – the ‘hand of the coffee maker’.

The right machineTo create a true 'Theatre of Coffee' you need to invest in a classic continental espresso machine that offers:

— Stylish and chic design that will form a real focus for any bar.

— Produces quality espresso and full range of coffee styles.

— Always produces fresh coffee on demand.

— Espresso machines are not as easy to use as the push-button bean2cup machines, and require a separate grinder, but espresso machines cost less to buy than fully automatic varieties.

An espresso machine also provides the familiar hissing and whooshing sounds as well as the powerful aroma of fresh ground beans that are all essential to creating a 'Theatre of Coffee'.

The right blendA premier coffee needs a premier bean and the perfect miscela for an artisan coffee outlet is the 100% Arabica blend produced by leading Dutch brand Bazar.

The Arabica bean is native to Arabia (hence the name) but it is now grown from Central America to Indonesia. Each area’s beans have a slightly different flavour and just like wine or whiskies, different Arabica beans are blended to create a unique taste for each brand. For an authentic coffee taste always choose a blend that is 100% Arabica (see Full of Beans section).

The right ‘hand’A specialist espresso maker is called a barista (just as a specialist lawyer is called a barrister!). Espresso machines do require some training to operate successfully so you should consider recruiting a trained barista, or training existing members of staff, to operate your espresso machine.

Besides creating great coffees, your baristas and other staff should be encouraged to up-sell cakes, snacks and other items. Make sure all your staff are familiar with every product you sell and the best combinations of those products.

Creating an artisan outlet in your pubIdeally you should set aside a separate area that provides:

— A quiet and relaxing atmosphere.

— Plenty of comfortable seating including sofas and armchairs.

— Complimentary extras such as newspapers.

To this you should add:

— Branded cups.

— Attractive bar displays.

— Prominent coffee menus on a blackboard or similar.

— Individual coffee menus on tables.

— Music suitable for the different moods of the day.

— Audio-visual displays – not necessarily TV news, sport or music videos. Consider using ‘visual wallpaper’ such as slide shows of contemporary art and photographs to create a stylish ambience.

Promoting your artisan coffeeBesides flyers and advertisements targeted at customers who expect artisan coffee, why not:

— Hold poetry/play/book readings and signings featuring works by local authors.

— Offer live music featuring local singer/songwriters and small jazz, folk and rock groups.

— Display pictures and craft works by local artists and offer them on a sale or return basis (with a small commission on sales for you).

— Invite arts groups, charities and other societies to hold talks and lectures on their work.

— Hold regular tasting sessions to promote new flavours and styles (see Growing Coffee section).


“There is something unique about the smell of freshly ground coffee.” Robert, 55, HGV Driver


Creating a convenience coffee outletThe convenience coffee model...

Not every pub has the space or the customer demand for a full ‘Theatre of Coffee’ but that does not mean these pubs are excluded from the coffee equation.

Our second model of outlet is designed to work in pubs with limited space whose customers have high standards but different expectations of coffee.

As 53% of coffee customers cite convenience as the chief reason for using a particular coffee outlet (see What Everyone Wants) our second model for pub coffee is based around providing that convenience.

The convenience model is ideally suited to busy community pubs, located on a bustling town/city high street or in the centre of a village, whose customers expect:

— Fast and convenient service.

— Good coffee at reasonable prices.

— Traditional and familiar coffee styles.

— Value for money snacks and hot food.

— Take away option.

If your pub has a high footfall but short visit times, especially during daytime trade periods, this model may be ideal for you.

The right machineThe convenience model is based around using the fast and efficient bean2cup automatic coffee machines. These machines offer:

— Easy to use, push-button operation.

— Minimal training required.

— All-in-one design with integrated grinder and fridge (some models).

— Large volumes of quality coffee, typically 60+ cups per day.

Though bean2cup machines have a higher purchase price than traditional espresso machines, higher volume of sales and easier operation more than compensate for this.

“The coffee shop is a great place to have a break mid way through my shopping trip. I'm happy to pay for a comfy seat, clean facilities and a nice cup of fresh coffee.” Nicola, 32, Web Designer


“Its a nice way to pass some time when I'm out shopping with the family!” Ian, 38, Boat Builder

The right blendA bean2cup can produce quality espressos, cappuccinos and espresso based flavoured coffees and again the recommended brand is Bazar. For more information about this quality blend see Full of Beans section.

Also S&NPC has negotiated special offers on two entry level machines (an espresso and a bean2cup) from leading suppliers Cafe Bar. See Good Grounds for Profits section for more details.

Creating a convenience outlet in your pubAgain, set aside a separate area where customers can read, work or socialise and promote this model with customers looking for a quick and convenient quality coffee...

— Shoppers' specials – offer secure bag storage so customers can take a break from shopping and leave bags behind for an hour or two.

— Business specials – take a look at the Coffee Means Business section on business customers who are increasingly using coffee outlets for meetings as well as a place to work and take a break.

— Commuter specials – with fewer customers popping into the pub for a pint after work, make sure your coffee offer attracts customers who want an hour’s peace before heading home.

— School run specials – encourage mums and dads to have a coffee before picking the kids up from school.

— Take away coffee and food – encourage busy people to use your pub to buy lunch or a snack whilst on the move. See Good to Go section for more information on take away coffee.

As you would with any other offer use A-boards, external banners, flyer drops (in shops, offices and other places of work) and other advertising to attract customers.

15


Using Bar Boosters to enhance your convenience coffee offerS&NPC are rolling out a new programme called Bar Boosters. This is a range of ideas and ‘off the peg’ schemes to help you introduce new revenue streams for your pub and coffee can be a key component of any Bar Booster.

For example the Bar Boosters programme includes such things as:

— Innstore – convenience groceries and emergency household items.

— Payzone – utility bill payment through a remote terminal.

— Parcel collection/delivery – providing safe storage so customers don’t have to take a day off work to sign for a parcel.

There are more than a dozen schemes in the programme and each one is designed to encourage customers to pop into their local pub to use a vital service.

Naturally, as soon as a customer using a Bar Booster smells freshly ground coffee they will be tempted to stay and have a cup! For more information on Bar Boosters ask your BDM for a Bar Boosters Manual.

17


For any lessee operating a suburban pub in a large residential area the key is to position their pub at the centre of their neighbourhood’s activities.

Coffee can play a vital role in this strategy, especially with customers who don’t want to travel into town for a good coffee and who expect their local pub to provide:

— A welcoming meeting place.

— Good value food and drink.

— Family friendly offer.

— Social events and entertainments.

If your pub is (or wants to be) the hub of your neighbourhood then this coffee model could be ideal for you.

How to use coffee to place your pub at the heart of your area...

Creating a social coffee outlet

The right machineThe type of machine for this model is less important than with the other models and will depend largely on what your customers expect. As we have seen, the traditional espresso offers premium artisan drinks whilst the automatic bean2cup is best for high volume sales therefore:

— Areas with high disposable incomes – choose an espresso machine.

— Areas where price may be an issue – choose a bean2cup machine.

In either case what is important is that customers choose your pub in which to hold their coffee mornings instead of their own home...

“My local coffee shop has a large table where everyone sits and chats - its like being back in my kitchen.” Sue, 38, Florist


“There are about 8 of us in our group. We always go for a long coffee after our yoga class at the gym.” Catherine, 24, Estate Agent

Reading is a popular pastime in coffee outlets so why not start a book exchange where customers can swap one of their old paperbacks with a new title from your pub’s library on a one-for-one basis? Stock your book exchange with donations from regulars and/or purchases from charity shops.

TOP TIP

Creating a social coffee outlet in your pubThe key customer groups to target are:

— Stay-at-home mums and dads with pre-school children.

— Seniors and retired persons.

— Housewives and househusbands.

— Persons working from home.

— Unemployed.

— Local clubs and societies.

To attract these customers why not:

— Parents – invite an existing toddler group to use your function room and/or children’s play area for their activities. If there is no group in your area why not start one?

— Seniors and retired persons – offer coffee and meal deals to over 55s. Start some senior-friendly events such as a Golden Oldies Music Quiz, bingo or even a daytime seniors’ pool/darts tournament.

— Housewives – start a book club where members come and discuss their chosen book of the month and/or organise home shopping parties (see Bar Boosters below).

— Househusbands – talk to local retailers about holding a shopping event in your pub selling such items as golf equipment, DIY tools or sports memorabilia.

— Persons working from home – install free Wi-Fi and suggest using your pub for their meetings with clients.

— Unemployed – talk to your local council and/or job centre about holding recruitment fairs, CV writing classes and other outreach programmes to help the jobless get back to work.

— Local clubs and societies - offer sports teams, hobby clubs and other social groups somewhere in your pub for their committee meetings. Offer free or discount coffee, especially in the evenings when coffee sales may dip, to encourage members to return during the day.

Using bar boosters to enhance your social coffee offerAs with the convenience model (see previous section) the Bar Booster programme can be used to enhance a social coffee offer. For this model of outlet, ideal Bar Boosters would be:

— Innspace – promoting your underused function room or quiet trade areas as a social and business meeting space.

— Racing screens – provide customers with live racing information just like in the bookmakers.

— Dry cleaning collection/delivery – so customers don’t have to take a special trip into town to drop off or collect dry cleaning.

— Boutique events – the home shopping party is an increasingly popular way for customers to buy an ever widening range of products. Why not offer your pub as a host venue for these parties?

Again the idea is that a customer popping into the pub to use a Bar Booster will stay and have a cup of coffee and vice versa. For more information ask your BDM for a copy of the Bar Boosters Manual.

“Its good to know I'm getting the best quality beans with Bazar coffee.” Joe, 40, Creative Director

Full of beansA great cup of coffee starts with a great coffee bean...

As we have seen, part of the key to creating a successful coffee offer is to create a strong brand to which customers will remain loyal.

To repeat, research shows that 72% of coffee drinkers will stay loyal to a brand and 88% of regular coffee drinkers will choose their preferred brand over a rival despite the rival’s better location.

To help you create this strong brand loyalty, and provide your customers with quality coffee cup after cup, S&NPC have launched an exclusive coffee brand that’s only available in the UK to S&NPC lessees...

Introducing Bazar coffee and teas The brand is called Bazar and though it is new to the UK it is the best selling caterer’s coffee in Holland. Besides quality coffee and teas, Bazar also supplies a range of branded cups, sundries and POS material.

Bazar coffee is available in a choice of dark, medium and mild roast varieties. Each variety is made from 100% Arabica beans and UTZ certified as being ethically sourced (see below). Coffee beans are available in 1kg bags and pre-ground 15g sachets for cafetieres

Bean basicsArabica beans are indigenous to Yemen in Southern Arabia and have a smoother flavour than the rival bean Robusta. In general Robusta, with its stronger and woodier taste, is reserved for value-for-money instant coffees whilst Arabica beans are reserved for premier quality ground coffee.

Ethical coffeeBesides the right blend of beans, many customers now insist that their coffee is ethically sourced. Because coffee will only grow in the tropics it is a major cash crop for many developing countries and this has produced an increased interest in ethical coffee where small growers receive a proper price for their crop.

We use the term ‘ethical coffee’ rather than ‘fair trade’ because ‘Fair Trade Coffee’ is a term associated with the Fair Trade Foundation and this organisation is just one provider of ethical certificates.

Other such certifiers include the Rainforest Alliance and UTZ which is the largest coffee certification organisation in the world. UTZ is based in Amsterdam and certifies Bazar coffee as being responsibly sourced.


70% of the world drinks mild Arabica coffee whilst only 30% prefer the stronger Robusta bean.

EXTRA SHOT


Using Bazar Arabica beans to create a quality coffee menuNowadays there is a wide variety of coffee styles but all coffees are based on just coffee, milk and water.

To create a quality coffee offer you will need to offer the most popular coffee styles namely espresso, latte, cappuccino, mocha, Americano and flat white (ordinary cup of coffee).

To begin at the beginning, espresso is made by forcing piping hot (but not boiling) water through the ground

coffee beans at high pressure. ALL coffees use espresso as their base and to create different drinks you simply add one or more of the following:

— Steamed milk.

— Milk foam.

— Whipped cream.

— Chocolate or other flavoured syrups such as banana, hazelnut, ginger and many others.

The proportions of these ingredients added to espresso to create each different coffee drink are:

Depending on the customer’s choice the coffee can be finished with one or more of the following:

— Chocolate Powder.

— Marshmallows.

— Ice cream (called a float).

— Other confectionery.

— That’s all there is to it!

Actually that’s not quite all; you can’t make premier coffee unless you have a premier machine and choosing the right coffee machine is the subject of our next section.

ESPRESSO

STEAMED MILK

MILK FOAM

CAFFÉ LATTE

ESPRESSO

STEAMED MILK

MILK FOAM

CAPPUCCINO

ESPRESSO

ESPRESSO

ESPRESSO

MILK FOAM

ESPRESSO MACCHIATO

ESPRESSO

WHIPPED CREAM

ESPRESSO CON PANNA

ESPRESSO

STEAMED MILK

FLAT WHITE

ESPRESSO

STEAMED HALF AND HALF

MILK FOAM

CAFFÉ BREVE

ESPRESSO

WATER

AMERICANO

ESPRESSO

STEAMED MILKCHOCOLATE SYRUP

WHIPPED CREAM

CAFFÉ MOCHA

0

10

20

30

40

50

60

0

5

10

15

20

Cake

s

Sand

wic

hes a

nd ro

lls

Muf

f ins

Pani

nis

Bisc

uits

Offer children’s ‘coffee’ so they can join in the coffee experience with mum or dad. Of course a kids ‘coffee’ does not contain any coffee at all it is simply hot milk and flavoured syrup with tasty trimmings. Here are some suggestions for some popular ‘babyccinos’...

Banana Blitz – hot milk with banana flavoured syrup, topped with a fresh banana.

Berry Heaven – hot milk with strawberry or raspberry flavoured syrup, topped with fresh berries.

Hot Choc Shot – hot milk with chocolate flavoured syrup, topped with a chocolate sprinkles and a flake or marshmallow.

TOP TIP

23

“I had a shot of ginger in my latte this morning. It was delicious.” Amanda, 36, Legal PA


How much can these machines make for my pub?Let’s assume that your pub can charge the UK average price for a cappuccino of £2.04.

Now let’s assume that each cup costs a total of 64p to make; this includes 40p for ingredients and staff wages, 10p for light and power and 14p to cover the purchase price of the more expensive CMA machine. After subtracting these costs you make a net profit per cup of £1.40. Now let’s crunch the numbers:

Net Profit

per cup

Cups Sold

per day

Daily Net

Profit

Weekly Net

Profit

Annual Net

Profit£1.40 50 £70 £490 £25,480£1.40 30 £42 £294 £15,288£1.40 20 £28 £196 £10,192£1.40 10 £14 £98 £5,096

There is now a bewildering choice of makes and models of coffee machine on the market. But to simplify your choice, S&NPC have negotiated a special offer with Cafe Bar, the UK’s leading supplier of commercial coffee machines with various finance options available.

The Cafe Bar offer features two of their exceptional espresso and bean2cup machines namely:

The Schaerer Siena 2 Bean2Cup machineThe Schaerer name means quality. Swiss design and technology are the hallmarks of this stylish self-contained machine that produces exquisite espressos and creamy cappuccinos at the touch of a button. The Siena 2 can be operated with minimal training and comes with an integrated foamer as well as a fridge to keep milk fresh. The Siena 2 also offers:

— Plumbing free installation.

— Small footprint ideal for busy bar tops.

— 5 selection buttons.

— Pre-selection for double shots.

— Pre-selection grinder bypass.

— One touch cappuccino.

The Siena 2 is perfect for pubs with limited space that expect to serve 60-70 cups per day.

The purchase price is £1,845.00 (+VAT) which includes the fridge and the first 12 months servicing, warranty and parts. Service contracts for Year 2 onwards offer five day cover for £445.00 per year, paid monthly.

Apart from the beans the most important ingredient in good coffee is a good machine...

Good grounds for profits

“I love watching my coffee being made - its part of the experience.” Adam, 50, University Lecturer


CMA2 Group & Grinder B2C

Siena 2

“I can see that my bar has a really good coffee machine - it gives me confidence when you can see they take their coffee seriously.” Harry, 28, Dentist

The CMA Planet 1 Group traditional espresso & grinder The Italian designed CMA Planet is the perfect compact machine for pubs wanting to serve true artisan coffee. Though power, plumbing and Barista training are required to operate this machine properly the CMA Planet offers the opportunity to create an exciting coffee menu. By combining espresso, steamed and foamed milk with flavoured syrups you can make delicious coffees to delight your customers.

— Stylish Italian design.

— Grinder, water-filter and knock-out draw included.

— Perfect for speciality coffees.

— Ideal ‘Theatre of coffee’ machine.

The purchase price is £2,515.00 (+VAT) which includes the grinder and the first 12 months servicing, warranty and parts. Service contracts for Year 2 onwards offer five day cover for £445.00 per year, paid monthly.

Siting machinesWhatever type of machine you prefer, you need to choose the optimum site on the bar. Try and find somewhere that:

— Has high visibility.

— Is close to water connections (plumbing is essential for espresso machines) and suitable power outlet.

— Does not obscure your till, glass collection area or other ‘hot spots’.

— Plenty of storage for cups without cluttering the back bar area.

— Room for milk and sugar stand.

— Has the machine facing the customer so they can see their drink being made.

Why should I choose Cafe Bar?Besides offering quality machines, superb support services and both on/off-site barista training, Cafe Bar’s machines are ideally suited to Bazar coffee. Together Bazar and Cafe Bar will help you create the powerful brand that will keep your coffee customers coming back time after time.

Over £25,000 annual net profit from coffee sales alone! No wonder they call coffee ‘the other black gold’.

Don’t forget the cheaper Siena bean2cup machine offers even greater margins and you can make more money through sales of cakes and snack foods.

It's on the disc!

— Siena 2 Bean2Cup Machine Brochure

— Siena 2 Bean2Cup Machine Owner’s Manual

— Siena 2 Bean2Cup Machine Quick Set Up Guide

— Siena 2 Bean2Cup Machine Cleaning Guide

— Siena 2 Bean2Cup Machine Technical Sheet

— CMA Planet Espresso Machine Brochure

— CMA Planet Espresso Machine Owner’s Manual

— CMA Planet Espresso Machine Cleaning Guide

— Jolly Grinder Grinding Instructions

— Jolly Grinder Technical Information

— Troubleshooting Guide

www.cafebar.co.uk

Female customers place great importance on presentation but a proper serve can enhance your coffee offer with every type of customer.

The serveThe serve begins with proper cups for each coffee type.

Espresso– should be served in the small cups, familiar in continental cafes, on a saucer. Offer a small glass of hot water so the customer can dilute the coffee according to their personal taste.

— Cappuccinos, lattes and other coffees – should be served in the large dish style cups to accommodate the extra ingredients.

— Mugs – mugs are perceived to offer greater value for money than cups and could be an important promotional item for a convenience or social coffee outlet model.

— Outsize cups – again can be used as a promotional tool but the current trend is away from 16/20oz cups and demand, especially in the artisan model, is for quality not quantity.

It goes without saying that whatever type of cup you use, all crockery should always be clean, free of cracks and chips and branded with your chosen coffee brand.

Why should I use branded cups?Earlier we mentioned the key to a successful coffee offer is to establish brand loyalty with your customers. Branded cups help this process by constantly reminding the customer which type of coffee they are drinking.

This is particularly important with the Bazar brand because it is only available to S&NPC lessees. In other words, branded cups remind customers that they have discovered an ‘exclusive coffee’ and that they can only drink their favourite latte or espresso in your pub!

Finally, branded cups show your customers you are proud of your coffee and committed to providing them with a quality drink, so ask your BDM about Bazar’s range of branded cups that will enhance your coffee offer.

Milk, sugar and other sundriesThe important decision with sundries is that they should reflect the quality of your offer as a whole.

Loose ceramic or metal milk jugs, sugar bowls and teaspoons add a sense of occasion to any coffee serving. However, with this option, you should be prepared for some wastage. For every serving, milk must be fresh and sugar in bowls free of stains from previous use.

Serving suggestionsHow you present your coffee is just as important as the beans and machines...

“Sometimes I just feel I want something a bit different - a peppermint or green tea makes me feel like I'm looking after myself!” Susie, 53, Music Teacher

“Its a real step up when you get served coffee in a decent branded cup - it makes my coffee feel like a special treat.” David, 36, Landscape Gardener

When using branded cups, always present the finished drink with the logo facing the customer.

TOP TIP

The Robusta bean has 50% more caffeine than the Arabica.

EXTRA SHOT

An oily film on top of a coffee is a major cause of customers taking their business elsewhere; it is produced either by your dishwasher using too much detergent or dirty pipes and filters in your coffee machine so check and clean all your equipment regularly.

TOP TIP


Pre-packed pots of UHT milk, sachets of sugar and disposable stirrers reduce wastage but reduce the perceived quality of your offer with customers.

Naturally loose sundries are best suited to the artisan outlet model (though you will also need pre-packaged sundries for take away customers) whilst pre-packaged sundries are ideal for the convenience outlet model and acceptable for the social outlet model.

In either case your milk and sugar should always be properly presented in suitable display stands. A plastic bottle of milk behind the bar is NEVER acceptable!

Tea and hot chocolateBesides coffee don’t forget tea and hot chocolate. Just 39% of customers buy only coffee in a coffee outlet whilst 61% will also order tea and/or hot chocolate depending on their mood. Within this group 10% of customers never buy coffee and prefer to drink tea and hot chocolate only.

Interestingly, older customers are more likely to drink only coffee whilst younger customers prefer a combination of both coffee and non-coffee beverages to be on offer. Similarly, male customers are more likely to buy only coffee whilst females like to choose a variety of drinks.

Again the Bazar brand can help you satisfy all of these customer needs with a range of traditional and herbal teas and delicious hot chocolates.

A food customer in a coffee outlet will spend an average of £3.65 compared £2.83 for a non-food customer or, to put it another way, if you want to add £1 to every coffee you sell you must provide a choice of food.

What food should I serve with my coffee?The five most popular food partners for coffee are:

— Cakes

— Sandwiches and rolls

— Muffins

— Paninis

— Biscuits

Customers who regularly visited coffee outlets bought these foods in the following proportions:

Snack attackGood coffee is only half the story; you should complete your coffee offer by serving cakes, rolls and other snack foods and set the right tone with carefully chosen music...

Coffee was first eaten not drunk. African tribes mixed ground beans with animal fat to form an ‘energy bar’ to be eaten whilst hunting.

EXTRA SHOT


Of course these figures are averages and you will know what type of food your customers will want with their coffee. However, don’t be afraid to try new lines and products. Above all ask your customers what type of food they would like to see on offer.

Food top tipsDisplay your cakes and rolls in suitable display cabinets. Customers won’t order cakes and biscuits kept out of sight.

Create a coffee-food menu with suggestions for coffee-cake/snack partnerships. Place small versions of your menu on tables and a large version by the coffee machine.

Use blackboards, A-Boards, table talkers and other POS material to ensure customers are aware of what is on offer.

Train your staff to up-sell food by suggesting an item that compliments each drink.

Only serve freshly made or vacuum packed items. Stale cakes and buns will drive customers away.

Make sure you have plenty of healthy options available and consider including some items that appeal to customers with special dietary requirements, such as gluten free cakes and diabetic biscuits.

I don’t have a kitchen, so how can I offer food?Ask your BDM about the back bar food solutions S&NPC can offer. Even if serving hot or homemade food is out of the question there are plenty of suppliers, such as The Fabulous Bakin’ Boys, who can offer vacuum-packed cakes and snacks with a long shelf life.

29

ESPRESSO

STEAMED MILK

MILK FOAM

CAFFÉ LATTE

ESPRESSO

STEAMED MILK

MILK FOAM

CAPPUCCINO

ESPRESSO

ESPRESSO

ESPRESSO

MILK FOAM

ESPRESSO MACCHIATO

ESPRESSO

WHIPPED CREAM

ESPRESSO CON PANNA

ESPRESSO

STEAMED MILK

FLAT WHITE

ESPRESSO


MILK FOAM

CAFFÉ BREVE

ESPRESSO

WATER

AMERICANO

ESPRESSO


WHIPPED CREAM

CAFFÉ MOCHA

0

10

20

30

40

50

60

0

5

10

15

20

Cake

s

Sand

wic

hes a

nd ro

lls

Muf

f ins

Pani

nis

Bisc

uits

MusicIt is well known that music can be a powerful tool in controlling customer behaviour. Fast food chains, which rely on a high turnover of customers, use up-beat music to ensure no one spends longer than the optimum time on the premises. Conversely, supermarkets use relaxing music to encourage customers to stay longer and spend more.

The same strategies can also be applied to your coffee offer. A pub using the convenience model may want to use lively music to ensure seats are vacated quickly to make room for the next customer. Equally a pub using the artisan model may want to use soothing music to encourage customers to stay and buy another coffee, cake or biscuit.

Into this equation we also have to add customers’ tastes. Few of your older customers will appreciate the latest rap release whilst most under 25s will not thank you for playing Glenn Miller!

Of course the trick is not to stick to one type of music but to change the style after two or three tracks. Best of all, why not install a jukebox to allow customers to choose their own music and boost your profits!

(For information on the latest digital jukeboxes see the companion guide in this series entitled Fruits of Success.)

“At first I didn't really notice it, then one day I realised I was spending more time in my local coffee shop just to listen to the music. Now I buy their CDs every now and then.” Neil, 36, Software Developer

In addition to the above a significant number of customers also bought hot snacks, wraps, crisps, salad, soup, fruit, bagels, pasta, yoghurt and even sushi in the following proportions:

ESPRESSO

STEAMED MILK

MILK FOAM

CAFFÉ LATTE

ESPRESSO

STEAMED MILK

MILK FOAM

CAPPUCCINO

ESPRESSO

ESPRESSO

ESPRESSO

MILK FOAM

ESPRESSO MACCHIATO

ESPRESSO

WHIPPED CREAM

ESPRESSO CON PANNA

ESPRESSO

STEAMED MILK

FLAT WHITE

ESPRESSO


MILK FOAM

CAFFÉ BREVE

ESPRESSO

WATER

AMERICANO

ESPRESSO


WHIPPED CREAM

CAFFÉ MOCHA

0

10

20

30

40

50

60

0

5

10

15

20

Cake

s

Sand

wic

hes a

nd ro

lls

Muf

f ins

Pani

nis

Bisc

uits

18%16%11%10%9%4%4%4%3%3%

Hot snacks

Wraps

Crisps

Salad

Soup

Fresh fruit

Bagels

Pasta

Yohgurt

Sushi

56%49%45%41%30%

Cakes

Sandwiches and rolls

Muffins

Paninis

Biscuits

“I always walk a bit further when I know there is going to be something freshly made - anything that's been sitting around for more than a day just isn't worth it.” Simon, 48, Police Officer

Loyalty schemesA simple stamp-card which rewards customers with a free coffee after a certain number of purchases will help establish brand loyalty.

“I would love some kind of loyalty card where you get special promotions. I tend to spend more than I would normally if there is a promotion or discount and I would only go to that outlet if I feel valued.” Helen, 35, Student

Free refillsCustomers love free refills but each refill will cost you the same 40p as for the initial cup and this will eat into your profits. On the other hand, a free refill often means a customer will buy an extra cake.

Essentially your policy on refills should be governed by the competition in your area. If every coffee shop offers free refills so should you. Equally if no coffee shop offers a free refill then perhaps you should.

“One cafe I visit offers refills for a reduced cost. I always recommend this cafe to friends who have then visited it. I often have a refill which means I buy an extra muffin.” Katie, 30, Surveyor

Community coffee Coffee is an excellent way to position your pub at the heart of your local community. In the Social Coffee Club model we suggested offering your pub as a venue for social groups to meet and encouraging them to do so with coffee and cake deals and other incentives. Customers seem to agree with me...

“I think that coffee outlets could become much more of a focus of the community by offering more community events such as book clubs and live acts. Why not display leaflets about the groups that meet there?” Josie, 36, Teacher

Tasting sessionsJust like wine and whisky, coffee connoisseurs like to experience new taste sensations and tasting sessions (cuppings) are a great way to introduce new coffees to your pub. However, I am not talking about new brands of coffee but new recipes that complement your existing brand.

For serious coffee fans you could arrange a demonstration of the coffee makers art (called a throw-down) by a barista (coffee expert).

“Social events that would attract me more would be cuppings and latte art throw-downs.” Paul, 44, Builder

New mediaWi-Fi internet access is now a popular reason to pop into a coffee shop and you can make the most of this trend by using new media to promote your coffee offer.

For example use internet blogs and social networking websites, such as Facebook and Twitter, to announce special offers, highlight new products and advertise live events.

“Customers could get emails or posts about community and charity events sponsored [by the pub] as well as updates about special offers and bands playing live.” Giles, 32, Artist

StaffLast but not least your staff are an essential element in your coffee offer’s success. Apart from encouraging staff to upsell items you should hold regular training sessions so staff can familiarise themselves with the latest jargon, recipes and techniques.

“I like good service and excellent staff, who are friendly and efficient. If staff make a point of recognising me I feel that they value my custom and I will come back.” Christine, 45, Beauty Therapist

POS and bar displaysEspresso machines in particular are design classics and should be placed prominently on your bar to advertise your coffee offer. You can also create attractive bar displays using branded crockery.

Your take away and drink-in menus should be prominently displayed on chalk boards and table talkers.

You can create bespoke coffee menus, tent cards, empty belly posters and other POS material using the Business Builder online design tool at www.snbusinessbuilder.co.uk


Growing coffeeStarting a coffee offer is just the beginning...Once you have established your coffee offer there are countless ways you can grow your coffee profits. Here are a few suggestions and what coffee customers think of them...


Coffee means business

Laptop computers, email and the internet means more and more people are working away from their offices but they still need somewhere to sit and write reports, meet clients and colleagues, or just take a break and have something to eat or drink.

Recent research into why business customers are turning to outlets that sell coffee offered this revealing insight from a male senior manager in the 55-59 age bracket:

“I have developed a routine whereby every morning I visit the coffee shop nearest to my office for breakfast. I then normally have another coffee there at lunchtime. I also use the coffee shop as a meeting place to do certain types of business or to have an informal chat with colleagues. A year ago, I only visited occasionally but I have become hooked on the coffee!”

Even more importantly it is NOT just white collar sales reps and area managers who use coffee shops during their working day. The same research offered this insight from a male manual worker in the 40-44 age bracket:

“I used to grab a coffee and leave, now I sit and read or if there is Wi-Fi, I check emails and surf. I use it [the coffee shop] as leisure time now instead of just for a quick cup of coffee. The environments are more relaxing as well with sofas and armchairs; much more relaxing and enjoyable.”

What do business customers want from coffee?The principal requirements are:

— Quality coffee – if business customers are meeting colleagues or clients a poor quality coffee reflects badly on their decision making abilities.

— Quiet areas – business customers do not want to be disturbed by fruit machines, TV and other distractions.

— Comfortable seating – you can’t do business perched on a bar stool! Comfy sofas and low tables are essential.

— Computer facilities – free Wi-Fi internet access is essential and a place to plug in a laptop highly desirable.

— Presentation facilities – not essential but if you have an underused function room why not set it up for informal business meetings? You will need a simple projector, screen, flip chart/white board and suitable tables and chairs but these can be obtained from a second hand office supply store very cheaply.

Your pub should be the first choice for coffee with busy business people...

How do I attract more business customers?Use your area analysis to identify the likely sources of business customers such as office complexes, small industrial estates and business centres.

— Prepare a flyer drop for these sites promoting your new coffee offer.

— Launch your coffee offer with a free coffee with a business lunch.

— If a suitable space is available, offer your pub free of charge to local business groups for their meetings such as Chambers of Commerce, branches of trade organisations and business networking groups.

— Offer complimentary newspapers and business magazines.

— Offer a free refill to take away.

— Make sure you have plenty of seating.

“Its hard to find really nice places to use wi-fi. Either there is nowhere to park my car, or its a burger joint. I really hunt out bars and coffee shops where I can do my email and relax a bit before I head out for more meetings.” Bruce, 41, Financial Advisor

“I've found a pub that has both coffee and wi-fi - its great because unlike most coffee shops its got lots of seats and its not too busy when I go in after the morning shopping.” Audrey, 56, retired Nurse

Hawaii is the only US State that can grow coffee!

EXTRA SHOT


The Castle Hotel, Dunbar is a traditional high street pub with an established eat-in food offer and letting rooms. Lessee Lawrence Brunton recently began to serve take away food and added coffee to go to complement this service. The Castle Hotel has plenty of competition from other coffee outlets in the town so Lawrence was careful to tailor his coffee to suit his customers’ expectations.

“There has been a real boom in coffee shops in Edinburgh city centre and they have now spilled down the coast into towns like Dunbar. We have had two coffee shops open in the town recently and these sell the speciality brews like mochas and lattes. However I’ve been careful to keep my coffee simple and sales have been steady.

As for food, I am adding the Jumbuck’s pies to my take away menu of burgers, paninis and filled rolls. We have had no problem getting hold of the boxes and containers and I have taken an advert in the local paper and put flyers around the cement works and power station which are Dunbar’s biggest employers. It will be tough to tempt these workers into town for lunch but we will see what happens.

I put plenty of POS material in the pub’s windows and we sell most of our take away coffee in the evenings, when the speciality coffee shops aren’t open. That said, we also have respectable take away coffee sales at weekends when the other outlets are open so there must be a gap in the coffee market that pubs like mine can fill!”


Take away coffeeA quiet ‘drink-in’ area where customers can sit is important for any outlet model but equally important is a take away option. Many customers will want to grab their favourite artisan espresso or convenience cappuccino to drink back at their place of work or en route to their next meeting– especially once you have established your exclusive Bazar coffee brand!

Recent research proves this; no less than 27% of coffee customers now buy more ‘coffee-to-go’ than they did 12 months ago and the good news is that adding take away coffee to your drink-in offer couldn’t be easier.

All you need are suitable disposable cups, lids, stirrers and pre-packaged milk/sugar and suitable POS material to announce you offer coffee to go. You can create take away coffee menus, table talkers, posters and other POS items using the Business Builder online design tool at www.snbusinessbuilder.co.uk.

Besides offering another way to maximise your profits from coffee, the take away option also:

— Increases ‘shoulder period’ custom - in other words coffee to go can attract customers to your pub between high and low trade periods.

— Helps promote in-pub coffee sales – every take away coffee cup is an advert for your pub’s drink-in coffee offer especially if you use branded take away coffee cups with the Bazar logo.

Take away foodBecause food is also an increasingly important part of any coffee outlet, you should offer your customers the chance to buy cakes and other snacks to take away. Again, all you need are suitable containers that can be purchased from your regular catering supplier for very little cost and suitable POS material to highlight this option.

You can promote both coffee and food to go with:

— Flyer drops in offices and other places of work. Include full details of your range of coffee, tea, hot chocolate and food and update flyers regularly.

— A-boards, banners and other on-site external advertising.

— Loyalty schemes such as stamp cards that offer a free item to go after a certain number of drink-in purchases.

— Discount refills to take away.

— A range of crisps, sweets and pre-packaged snacks. Don’t forget healthy options such as cereal bars.

Good to goUsing take away coffee and food to boost coffee profits...

Case study Coffee to go

“When I'm travelling its sometimes hard to find places that serve coffee to take away - the best ones always have a sign outside - you can usually tell straight away if its going to be decent coffee inside.” Matthew 43, Marketing Manager

The Park Tavern, Merton Road, London is a well appointed suburban pub occupying a corner site between a busy high street and a residential avenue.

The pub’s excellent range of wet products and fresh, home cooked food are extremely popular and attract a good trade from local residents and customers who are prepared to cross town for a quality service.

The premium quality menus, combined with promotions such as the Wednesday Quiz Nights (which regularly attract up to 70 trivia fans), both draw customers from a wider area than the immediate vicinity.

Lessee Ed Sheldon, and his assistant manager Gavin Harrington, decided to upgrade the pub’s coffee offer in January 2010 and were selected as the trial pub for S&NPC’s new Bazar brand.

Ed and Gavin opted for a mix of the artisan and convenience outlet models and installed a traditional espresso machine that could deliver quality coffee at competitive prices.

The offer is designed to appeal to busy residents and shoppers using Merton Road, commuters, local office/shop workers and passing business customers looking for a relaxing place to take a break or do some work.

“The addition of Bazar coffee to The Park Tavern has been very well received,” says Gavin. “Our customers regularly comment on the quality of the coffee, and compliment us on our choice of brand. I would say that there has been an overwhelming and unanimous approval of the coffee!”

Gavin’s words are underlined by the steady increase in sales throughout the January/February trial period despite the atrocious winter weather.

“After the installation of Bazar coffee, coffee sales increased appreciably,” continues Gavin. “Food sales in January dropped significantly as was to be expected due to market trends at this time of the year. However, coffee sales in January only increased. The amount of coffee sold has increased nearly 8% for the rest of January, after the installation of Bazar, and by over 10% for the month as a whole.”

The Park’s coffee menu is based around the most popular coffee styles such as espresso, Americano, flat white, cappuccino and latte, all of which are offered with a take away option. Gavin charges £2 for take away and £2.20 for drink-in and the coffee range is complimented by a selection of breakfast and herbal teas as well as hot chocolate.

Coffee in the parkHow one suburban pub in South West London is using coffee...


As experienced operators both Gavin and Ed appreciate the value of presentation for any aspect of their offer and their hot drinks are no exception.

“The taste is not the only aspect of the brand that customers like,” adds Gavin. “The addition of branded mugs, sugar and biscuits has a palpable visual impact on the customer. We have had good comments about the branded merchandise, such as the cups, sugar sticks, and biscuits, saying that it is unique, and appealing.”

Food is also an important element of The Park Tavern’s coffee offer and Gavin plans to take full advantage of the sales opportunities coffee and food can provide.

“We have just today received a range of Fabulous Bakin’ Boys muffins, slices, and flapjacks to be sold with the coffee, as well as a proper display stand for these items,” says Gavin. “We hope that this addition to the offer will again increase the coffee sales.”

Once again, Gavin has been careful to add a take away dimension to his food and coffee sales.

“Food is at the core of The Park Tavern’s offer as a whole,” says Gavin. “We have a very busy and vibrant kitchen catering for our eat-in customers and we offer take away cakes and muffins, as well as hot pizza, which complement the take away coffee perfectly.”

The drink-in offer is attracting mainly female customers, in the under 40s age range who live locally, but take away coffee sales are increasing amongst a broad range of customers. For the future, Gavin intends to use marketing to attract an even wider selection of coffee customers to The Park Tavern.

“We will be focusing on producing marketing material such as swing boards and table tents. We are also introducing a simple loyalty scheme with a stamp-card that offers a free coffee after a certain number of purchases. We are very confident that this scheme, combined with high visibility marketing materials, will help us grow our coffee offer and make this already successful trial an even better success.”

37


10 Steps to Coffee SuccessStep 1: Take a look at your local area to discover where the opportunities for your coffee offer lie.

Step 2: Take a look at your customers and identify what type of coffee offer they expect your pub to provide.

Step 3: Take a look at your pub to see what type of coffee offer you can install to match your customers’ expectations.

Step 4: Decide on which type of machine would best suit the type of coffee offer you want to install.

Step 5: Decide on what type of food, take away services and other extras you will need to compliment your coffee offer.

Step 6: Decide on how you are going to promote your coffee offer and choose suitable POS and other material.

Step 7: Discuss your plans with your BDM and/or call 0845 119 9009 (Bar Boosters Hotline). Our team will help you get in touch with the right suppliers.

Step 8: Work with your chosen suppliers to implement each aspect of your coffee offer.

Step 9: Regularly review your income from coffee and its effect on other aspects of your trade.

Step 10: Regularly review how you can improve your coffee offer to stay ahead of the competition.

The next stepsHopefully Grounds for Success has shown you just how important coffee can be for your pub. So let’s finish with a quick start up guide designed to help you plan the next steps to your successful coffee offer...

grounds for success

Documents

coffee profits

right coffee

coffee shops

convenience coffee outlethow

good cup of coffee

premier coffee machines

social coffee outlethow

artisan coffee outlethow