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coffee quality improving profitability. andrew hetzel cafemakers, llc hawaii, usa. restaurants that continue to serve coffee as an afterthought are trying to play catch up, even as economic forecasters predict a continued financial pinch for the country in general. jan ‘03 qsr magazine.

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Coffee quality improving profitability l.jpg

coffee quality improving profitability

andrew hetzel

cafemakers, llc

hawaii, usa


Slide2 l.jpg

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

jan ‘03qsr magazine


Benefit l.jpg
benefit are trying to play catch up, even as economic forecasters predict a continued financial pinch for the country in general

  • national retailers upgrading quality

  • motivation

    • profit

    • customer retention

    • strengthen brand


Dunkin the competition l.jpg
dunkin’ the competition are trying to play catch up, even as economic forecasters predict a continued financial pinch for the country in general

  • 63% sales

  • krispy kreme in financial crisis

  • espresso beverage platform “enormously successful”


Re ten shun l.jpg
re-ten-shun are trying to play catch up, even as economic forecasters predict a continued financial pinch for the country in general

  • chik-fil-a upgrades coffee program

  • drive-thru operators notice competitors coffee in customer vehicles

  • 45% price increase

  • coffee sales double


Slide6 l.jpg

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 falkenberrychik-fil-a


Case study borders cafe l.jpg
case study: borders cafe to get an exceptional cup of coffee, there was a big opportunity to create value for them by upgrading our offerings

  • pioneer (early ‘80s)

  • 1400 sq ft

  • enhance buying experience

  • august 2004 began upgrades


Textbook example l.jpg
textbook example to get an exceptional cup of coffee, there was a big opportunity to create value for them by upgrading our offerings

  • 465 cafes

  • 70% upgraded by 2007

  • metrics

    • % of business

    • same store sales

    • growth of category


Slide9 l.jpg

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


Caf unbound l.jpg
café unbound comparable store sales in remodeled stores,

  • menu changes

    • coffee focus

    • reduced merchandise

    • streamlined food

  • fixtures

  • equipment


Caf unbound11 l.jpg
café unbound comparable store sales in remodeled stores,

  • brand

  • ingredients

  • store placement

  • emphasis as independent business

  • retained employees


By the book l.jpg
by the book comparable store sales in remodeled stores,

  • $7 million (superstore)

  • $150k conversion estimate

  • $400k sales estimate


Slide14 l.jpg

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 l.jpg
mccafe europe 5%, asia 5.4%

  • increase breakfast sales

  • npd research:

    • 37% breakfast orders include coffee

    • coffee is #1 breakfast food item


Mccafe16 l.jpg
mccafe europe 5%, asia 5.4%

  • 1000 world-wide

  • australia, nz, germany, us (test)

  • rebuilding brand

    • broadening demographics

    • lounge atmosphere


Mccafe germany l.jpg
mccafe germany europe 5%, asia 5.4%

  • 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 l.jpg
not clowning around europe 5%, asia 5.4%

  • US$1.5 mil avg store sales @ 31%

  • 10-11% sales increase at mccafe locations

  • $150k @ 50%


Good cents l.jpg
good cents europe 5%, asia 5.4%

  • additional sales

  • customer retention

  • brand enhancement

  • increased profitability


Questions copies or help l.jpg

questions, copies or help europe 5%, asia 5.4%

andrew hetzel

cafemakers, llc

hawaii, usa

+1 (808) 443-0290

[email protected]


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