coffee business strategies

andrew hetzel on better coffee, better business

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Niche Marketing

October 17th, 2005 · 5 Comments · Start a Coffee Shop

It seems that in todays demand-driven, consumer-informed market, one word seems to embody a strategy that can pay off big for coffee shops, cafes, and even wholesale roasters—Mass-customization. This word, the arch nemisis of standardization, is basically synonymous with words like unique and creative and can fall into line with catch phrases like “the road less traveled”. Grammer aside, this strategy of treating each individual customer as if they were a seperate “account” or entity from every other has proven successful in an industry where replacements are easily found.

Gone are the days where everyone has to scoop from a can in the morning, regret doing so at lunch (because of crippling stomach aches), and anticipate a variety of coffees of their local supermarket being stagnant at Regular, Decaf, and French Roast. Here are the days of custom roasts, an extraordinary number of flavors, additives, milk drinks and coffee-flavored goodies all found in small coffeeshops that dot the horizon of any city big enough to live in.

What does this mean for the coffee shop owner trying to stand out? What about his supplier? It means this and only this: your business is your customer, and your customer is your business. Period. If Joe Smith likes his coffee burnt to the dickens, then burn his coffee the way he likes it. If Joe’s wife likes Kenyan espresso made with organic milk, buy Kenyan coffee, make an espresso from it, buy organic milk, and make her drink.

A lot of coffee shops, trying to set themselves apart from others are focusing on the least critical of the 4 P’s of marketing (for you ad/promo people) which is price. Any coffee professional would agree that setting price before looking at packaging, promotion, and product, and most important–WHO YOU ARE–is shooting yourself in the foot. Knowing this, the only price you should be concerned with is the cost of acquiring customers, retaining customers, and doing so to stay in business.

That in mind, there is no panacea for the “differentiation blues” that a coffee shop owner may encounter when trying to set him or herself apart from the rest. Bottom line is this—know your customer, know yourself, and go from there. Don’t hesistate from being creative…its the breath of fresh air both you and your customer have been waiting to inhale since the big guy took over.

Good luck and God bless…always remember to tip your barista :)
Happy cupping all,

Jeff Hansford
Mtn. State Golden Roast, LLC
Englewood, CO

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5 responses so far ↓

  • 1 Dylan // Nov 30, 2005 at 6:08 am

    I can definitely agree with what you say about mass - cutomization, people want it there way and they are always right. Treat them as though it were you on the other side of the bra, take a walk around someotime and talk to your employees from a customers perspective see how they react differently when you are on the other side. Another good point would be to stay consistent with what you are carrying, dont jump around with product to much.
    thanks Dylan

  • 2 Drew Patel // Feb 14, 2006 at 9:32 pm

    Hi, Wonderful article, very very informative. i agree on all the points u noted. i think uniqueness is very important in this business. The though of opening a coffee house in my area has crossed my mind for past six months but my probelm is I am not able to decide type of coffee. But now i think by some of your refering links will help me thanks for this wonderful helpful article.

  • 3 Jessica Mullineaux // Mar 27, 2006 at 12:58 pm

    This is completely true. Managing a small town coffee shop I personally pride myself in not only customizing each drink to specific customers likes but also to deliver this to them without them even having to order, hopefully be almost done with the drink by the time my valued customer reached the counter. Great article.

  • 4 Kathy // Jun 21, 2006 at 3:51 pm

    Yes, this article is great, but it is not telling me anything I don’t already know and do. I own a small coffee shop and we have been in business for two years. However, my customer base is fairly small (75-100). They are regular during the winter when school is in, but the summer is killing me. My regulars are staying at home and sleeping in. I need more customers comming in everyday just to make it. Right now my sales are half of what I need to pay my bills and have been for the past 4 weeks. What is a creative way to entice new customers into the store. I have found radio and newspaper to not be very effective. What now?? Thanks, Kathy in Alabama.

  • 5 Anonymous // Aug 24, 2006 at 7:55 am

    Dave

    Interesting topic… I’m working in this industry myself and I don’t agree about this in 100%, but I added your page to my bookmarks and hope to see more interesting articles in the future

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