coffee business strategies

We’re regularly asked “how should I set the prices on my menu?”

Such a personal question should always be addressed on an individual case basis; however, as a general guideline we suggest that you survey your local and national chain competition and then position yourself on the high-end or slightly above.

Specialty coffee is classified as a “micro-luxury” item; even the best cup of coffee is within financial reach of the average buying consumer. Most coffee drinkers will think little of paying $3.00 or $4.00 for an outstanding cappuccino - it is that experience of an outstanding beverage they value, not the prospect of saving a few pennies. Positioning your prices below your competition may in fact be a deterrent for some customers that may otherwise expect “cheaper” means “not as good.” Now, in order for this strategy to be successful, you must ensure that in addition to providing an outstanding beverage that you are also supplying all of the same benefits of your competitors: a clean environment, convenient access and a consistent experience.

You’ll find that by positioning your prices on the high end of your competition that not only will you make more money per beverage, but also that your overall transaction volumes may increase as your reputation evolves beyond “just another coffee chain clone.” But don’t forget, you’ve got to consistently deliver quality: the proof is in the cup.