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5 Impactful Ways to Grow Your Coffee Business
Coffee shops can be attractive options for entrepreneurs entering the competitive food service industry. In busy urban areas, there is always someone walking out with a cup of joe in hand.
However, cafes can struggle if run poorly or face economic downturns. But coffee isn’t likely to fall out of style. As long as there are coffee beans, there will be coffee shop customers.
Boutique and independent coffee shops can become financially sustainable and deliver a satisfactory return on investment with the right tools.
Here are five ways to grow your coffee business:
1. Put quality first
Serve the best
Consistently serve the best coffee and espresso. Invest in the right equipment and use high-quality coffee beans and products. People go out of their way for great coffee, so don’t skimp.
Tell people why your coffee is unique
If you’re sourcing from a specific small farm or serving fair trade coffee, let people know. Educate your baristas so they can reinforce what makes your drinks unique. Share this information on your website.
Hire the right people
Hire the right people to work in your coffee shop. Your front line is key to promoting repeat business. Don’t just hire the cheapest help. Build a top-notch team.
Don’t shortchange your training program
Invest in a consistent training program.
2. Start a loyalty or rewards program
You won’t lose money
According to a study, 64 percent of small businesses that started a loyalty program said it made them more money than it cost to run.
You’ll profit more from repeat customers
Repeat customers spend 67 percent more than first-time customers. Offer customer loyalty incentives to stand out.
If your coffee shop is open in the evening, serving wine and beer can attract more customers during typically slow hours.
Starbucks found that adding wine, beer, and food items to the menu in the evenings increased revenue. Consider adding this option.
4. Consider buying an existing shop if you’re ready to expand
It might be quicker
If you want to expand to a second location, consider acquiring a coffee shop for sale in your area. It saves time and potentially avoids equipment purchases.
You might save on startup costs
Acquiring an existing location can save you time and money on equipment. Negotiate a deal that suits you.
There could be a built-in customer base
If the shop has an established clientele, less marketing capital might be required.
Of course, market your coffee shop and let people know it’s under new ownership if necessary.
5. Understand that you’re selling more than coffee
Be an oasis
Coffee shops offer more than just caffeine. Customers visit to escape stress, connect with others, and relax. Encourage customers to stay in your shop.
Think through whether you want people to linger
While offering free Wi-Fi is important, providing plentiful access to power outlets encourages non-paying or low-paying customers to stay too long. Consider this carefully.
Help people relax and have fun
Offer board games, puzzles, or other interactive activities to capitalize on people’s desire to connect with others. Understand your customers’ needs.
These strategies will help you grow your coffee business sustainably. Keep a close eye on your financials and use your business plan as a tool to stay on top of opportunities and challenges.
If you’re looking for resources on how to start your coffee shop, check out this guide.
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I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.
My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.
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