coffee quality improving profitability

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Information about coffee quality improving profitability

Published on May 19, 2007

Author: cafemakers

Source: slideshare.net

Description

"coffee quality improving profitability" presented by Andrew Hetzel of Cafemakers at the 2006 National Coffee Association Fall Education Conference in New York

 

coffee quality improving profitability andrew hetzel cafemakers, llc hawaii, usa

restaurants that continue to serve coffee as an afterthought trying to play catch up, even as economic forecasters predict a continued financial pinch for the country in general jan ‘03 qsr magazine

benefit national retailers upgrading quality motivation profit customer retention strengthen brand

national retailers upgrading quality

motivation

profit

customer retention

strengthen brand

dunkin’ the competition 67% sales krispy kreme in financial crisis espresso beverage platform “ enormously successful ”

67% sales

krispy kreme in financial crisis

espresso beverage platform “ enormously successful ”

re-ten-shun chik-fil-a upgrades coffee program drive-thru operators notice competitors coffee in customer vehicles 45% price increase coffee sales double

chik-fil-a upgrades coffee program

drive-thru operators notice competitors coffee in customer vehicles

45% price increase

coffee sales double

if customers were willing to make two stops in the morning to get an exceptional cup of coffee, there was a big opportunity to create value for them by upgrading our offerings mike falkenberry chik-fil-a

borders cafe pioneer (early ‘80s) 1400 sq ft enhance buying experience august 2004 began upgrades

pioneer (early ‘80s)

1400 sq ft

enhance buying experience

august 2004 began upgrades

textbook example 465 cafes 70% upgraded by 2007 metrics % of business same store sales growth of category

465 cafes

70% upgraded by 2007

metrics

% of business

same store sales

growth of category

cafe and gift and stationery categories positively impacted comparable store sales in remodeled stores, resulting primarily from the conversions of cafes to the seattle’s best coffee brand borders group

café unbound menu changes coffee focus reduced merchandise streamlined food fixtures equipment

menu changes

coffee focus

reduced merchandise

streamlined food

fixtures

equipment

café unbound brand ingredients store placement emphasis as independent business retained employees

brand

ingredients

store placement

emphasis as independent business

retained employees

by the book $2.8 mil retail sales @ 25% $150k conversion estimate $400k sales estimate @ 50%

$2.8 mil retail sales @ 25%

$150k conversion estimate

$400k sales estimate @ 50%

mcdonald’s july 2006 same store sales increase: us 1.9%, europe 5%, asia 5.4% ceo jim skinner credits “breakfast and premium-roast coffee.” mcdonald’s

 

mccafe increase breakfast sales npd research: 37% breakfast orders include coffee coffee is #1 breakfast food item

increase breakfast sales

npd research:

37% breakfast orders include coffee

coffee is #1 breakfast food item

mccafe 1000 world-wide australia, nz, germany, us (test) rebuilding brand broadening demographics lounge atmosphere

1000 world-wide

australia, nz, germany, us (test)

rebuilding brand

broadening demographics

lounge atmosphere

mccafe germany extremely successful milk sales rising with coffee consumption italian / american-style 200 locations; 500 projected shop-in-shop concept good buy-in with franchisees

extremely successful

milk sales rising with coffee consumption

italian / american-style

200 locations; 500 projected

shop-in-shop concept

good buy-in with franchisees

 

not clowning around US$1.5 mil avg store sales @ 31% 10-11% sales increase at mccafe locations $150k @ 50%

US$1.5 mil avg store sales @ 31%

10-11% sales increase at mccafe locations

$150k @ 50%

good cents additional sales customer retention brand enhancement increased profitability

additional sales

customer retention

brand enhancement

increased profitability

questions, copies or help andrew hetzel cafemakers, llc hawaii, usa +1 (808) 443-0290 info@ cafemakers .com

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