A topic of our today’s post might seem less important than all the others we have written about coffee, but you are definitely wrong.
The importance of maximizing your coffee shop’s revenue is high, and these little tips, strategies, and methods we will be sharing are necessary if you want to have the the possible income from your coffee shop.
Even though these tips are written having a coffee shop’s revenue in mind, they can be applied to other industries and other businesses. You may have the opportunity to use a method from this post onto a different business of yours.
- Add Wine To Your Menu
You might think that wine should not belong in a menu of an average coffee shop but if you remember correctly, the biggest chain of coffee shops, Starbucks, has launched Starbucks Evenings with a goal in mind of optimizing and boosting their sales numbers.
What they have realized is that number of customers decrease after 4 pm every day, so they had to do something to bring an extra income. And people would think that Starbucks, even though it makes billions of dollars and have millions of customers worldwide, wouldn’t be able to boost sales, they actually managed to pull of about a $1 billion in overall sales revenue with this simple method of adding wine to their menus.
Later on, they have implemented this to all of the coffee shops they are running, and kept adding things to their menu, like craft beer and most recently, small plates of food.
Of course, it’s not that simple to introduce alcohol to your menu. There are regulations and all kinds of complexities you may run into. You also have to train staff to act responsibly when serving alcohol and understand that it is not the same product as coffee.
But it’s not that Starbucks is the only coffee shop that is trying out this service- you can hear about a dozen of other coffee shops trying to maximize their revenue by bringing alcohol in the game.
What you may not notice is that adding wine to your menu is not only a way to increase number of customers during the slow hours, it’s also a fantastic technique to broaden the audience.
The real trouble you might have is with government issues, regulations and all that comes with it. However, the outcome will definitely be worth so we always advice giving a try to this method.
- “Laptop Hobos” Are Not Good Customers
When you were setting up your coffee shop, you probably thought it is a fantastic idea to have a reliable Wi-Fi and power outlets for people who will be attracted by being able to use that and decide to visit your coffee shop.
However, what you didn’t realize is that people who come in and spend hours at your coffee shop typing on their laptops are actually bad business.
More customers you have, more money you make. Having the same five people sitting at your coffee shop every day, using your Wi-Fi is not going to pay your bills.
Of course, it is essential to give your customers a good experience- make them feel welcomed, but the limit needs to be found for the ones who just come in and spend an entire day browsing on their laptops.
You can put up a rule and train your staff to let everyone know that they need to buy another drink after they spent a certain amount of time at your coffee place. You can’t ask anyone to leave but you can ask them to be courteous and if they are taking place in your coffee shop, order something.
Certain coffee shops went extreme on that by banning laptops and Wi-Fi, but that would also be a lousy business, considering how people became addicted to spending time browsing the Internet, checking messages on Facebook or posting photos on Instagram everywhere they go.
You can also go with the approach of letting customers know that during the busy hours, they are not allowed to use their laptops for longer than 60 or 120 minutes. But keep that rule only for busy hours, because if you have an empty coffee shop, you shouldn’t worry whether someone sits there for hours.
- Try Board Games
This is also a unique approach many coffee shops decided to take. We mentioned that turning a lot of tables means more sales but sometimes it is not the worst idea if customers choose to stick around for a bit longer.
A lot of coffee shops are making board games free, or they rent them pretty cheap to customers who would like playing.
Of course, it’s not the best idea to turn your entire coffee shop into a place for board games, but giving few options like chess, risk or monopoly would spark more interest among the customers and again, you gain a new opportunity to approach a broader customer base.
This method became popular, especially because adults were spending a lot of time browsing their Internet and a lot less time socializing with others.
- Give Out Gift Cards
It is unbelievable how much people love receiving gifts. Gift cards have become the most requested item on every holiday listMakeand they are liked and wanted by everyone.
There lies an opportunity for every business owner to take advantage of what seemed to be booming. Starbucks introduced gift cards, and that proved to be quite successful for them. You will most certainly increase revenue and your profit margins by incorporating gift cards into your coffee shop.
- Make Use Of POS System
POS system became quite popular, and if you never heard of it, it stands for point of sales or commonly known as the point of purchase.
It refers to impulse buying of customers who make buying decisions once when they see something inside of a store. One of the latest research proved that 82% of purchase decisions are made inside of a store.
People buy things they didn’t need or planned in the first place. And you can take advantage of that by placing some things on the shelves near the cash register. Make them affordable and attractive because that will make a POS system successful. They can be chocolates, cookies, magazines, gift cards, books or… well, anything that you may think your customers are going to like.
Impulse buying happens for so many reasons but most often because people feel anxiety and think that buying something will improve their mood or make them happier.
What is important to you is that it happens and you should take advantage of it. Do not be afraid to experiment with different products. Get to know your audience and what they are attracted to.
- Make Use Of In-Store Displays
We took a ton of Starbucks ideas but only because they employ marketing strategies that bring profit. They optimized their business to the highest point, and they keep trying out new business and marketing ideas to increase profit.
Last but not least, we have in-store displays of artistic mugs, cups, and glasses. You can also put gourmet coffee, but these don’t necessarily have to be for decorative purposes.
You can actually sell these in your coffee shops and increase your profit. Also, you can put attractive signage to show off some products you are aiming to sell and draw some customer attention to it.
We showed you some awesome ideas that should help you increase your business profits. Now, it’s your time to implement write these ideas down having your business in mind and your twists to every method we offered. You will most certainly come up with more than one way to increase your profit.