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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

coffee quality improving profitability

andrew hetzel

cafemakers, llc

hawaii, usa

slide2

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
benefit
  • national retailers upgrading quality
  • motivation
    • profit
    • customer retention
    • strengthen brand
dunkin the competition
dunkin’ the competition
  • 63% sales
  • krispy kreme in financial crisis
  • espresso beverage platform “enormously successful”
re ten shun
re-ten-shun
  • chik-fil-a upgrades coffee program
  • drive-thru operators notice competitors coffee in customer vehicles
  • 45% price increase
  • coffee sales double
slide6

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
case study: borders cafe
  • pioneer (early ‘80s)
  • 1400 sq ft
  • enhance buying experience
  • august 2004 began upgrades
textbook example
textbook example
  • 465 cafes
  • 70% upgraded by 2007
  • metrics
    • % of business
    • same store sales
    • growth of category
slide9

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
café unbound
  • menu changes
    • coffee focus
    • reduced merchandise
    • streamlined food
  • fixtures
  • equipment
caf unbound11
café unbound
  • brand
  • ingredients
  • store placement
  • emphasis as independent business
  • retained employees
by the book
by the book
  • $7 million (superstore)
  • $150k conversion estimate
  • $400k sales estimate
slide14

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
mccafe
  • increase breakfast sales
  • npd research:
    • 37% breakfast orders include coffee
    • coffee is #1 breakfast food item
mccafe16
mccafe
  • 1000 world-wide
  • australia, nz, germany, us (test)
  • rebuilding brand
    • broadening demographics
    • lounge atmosphere
mccafe germany
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
not clowning around
not clowning around
  • US$1.5 mil avg store sales @ 31%
  • 10-11% sales increase at mccafe locations
  • $150k @ 50%
good cents
good cents
  • additional sales
  • customer retention
  • brand enhancement
  • increased profitability
questions copies or help

questions, copies or help

andrew hetzel

cafemakers, llc

hawaii, usa

+1 (808) 443-0290

info@cafemakers.com