We are being told of how many great advantages coffee chains have in the global perspective. However, a few independent coffee shops are eager to join huge chains and lose their authentic and exclusive approach once and for all. Why is this happening? Are they mad to lose tons of revenues? Or is there any other reason for independent service providers to stay in the shadow of world’s biggest coffee chains like Starbucks? Let’s figure it out.
Today, we can hardly imagine a modern office without coffee. It is not just a casual beverage for employees. The drink may influence the level of productivity as well as create a harmonious atmosphere for communication and creativity. On the other hand, coffee may turn a typical office into a beneficiary niche from business perspectives. Is it possible to turn a coffee room into an efficient business model? It certainly is. We will tell you how.
Coffee is doubtlessly one of the most important products available in the market. On the one hand, it can boast great tonic features. On the other hand, it brings different people from different parts of the world together forming a huge global community of dedicated business professionals. The role of coffee should never be underestimated, as its importance for the global economy is the same as finances, oil or other market-defining products.
Moreover, coffee highlights some extra features such as flexibility and some other resources letting the product change in accordance with the market development and met its expectations in the long run.
Let’s talk about the habit of drinking coffee outside the home in Europe, Canada and Russia. Drinking coffee at the gas station, taking a cup of coffee to go on the way to work are the new habits of the modern metropolises inhabitants which change the coffe-drinking traditions in different countries around the world.
Mornings in the establishments of the Canadian coffee chain in any city of Maple Leaf Country starts in the exact same way. The crowd of visitors sweeps stocks of coffee and pastries in the blink of an eye – the nation is one of the most coffee-addicted in the world, which is confirmed by the impressive figures of consumption and the degree of prevalence of drink among absolutely all categories of citizens in terms of monthly income, place of residence, occupation, etc. .
In 2015, the country has topped the list of 80 countries in terms of coffee consumption, calculated in liters per capita that are bought and cinsumed in catering establishments – mostly in the cafes. In terms of absolute consumption, including the volumes of coffee beverages drunk at home, Canada is the third in the world with 152 liters per person each year. Ahead are only Netherlands and Finland coffee fiends, confirms the authoritative Euromonitor study.
When traditional logistic models and the organization of the supply chain have jeopardized the dynamic growth of the company, the owners of Costa Coffee went all-in. The company completely changed the leadership, adopted a new strategy for the organization of supply, hired a new logistics operator, and also introduced a new enterprise software to provide a new level of benefit from the telemetry component of its system. We believe that the final result speaks for itself.
Author’s note
When I was preparing this article, i was surprised by how similar problems had to be solved in RusHOLTS around the same time. An illustration of the similarity could be invention of the rad by Marconi and Popov. The problem is in the air and solution comes to those who are looking for it. Only RusHOLTS had to be tis own “new” logistics operator because of the lack of worthy proposals. No “regional partners”, no services outsourcing – only our own trained and well-managed structures that guarantee the high quality of work.
Vending as a sales technique is good – but only when it comes to newspapers, chocolates and chips, as well as personal care products. He who presses the button is the one who got the goods. Just pushed it – and continued their own way. Coffee beverages vending business now comes with minimum human involvement.
Coffee vending tend to vary in terms of product quality from “Lord, what is this ???” to “Well, okay.” Why is that? Because making of coffee – is a complex process with a thousand of nuances. No exceptions. The only thing that differs very much from a good “vending coffee» to a vending of a bad coffee” – is a chain Costa Coffee called Costa Express Company.
Costa Express Coffee – is an unexpected example of the coffee business in terms of a combination of indicators varying from “country of origin”. How this company was able to appear in the UK, a country of a totalitarian tea cult – it is a mystery. Nevertheless, it was there in 1971 when this brand appeared, which not only takes a confident second place in the World after Starbucks but represents today the very notion of “premium coffee vending” that tend to vary in terms of product quality, from “Lord, what is ???” to “Well, okay.” Why is that? Because making the coffee is a complex process with a thousand nuances. Virtually no exceptions. The only thing that is very distracting from the association with «vending coffee –is a vending of a bad coffee” – is a chain called in Costa Coffee.
How much should a cup of your favorite coffee cost? What key factors does the price include? Which coffee is cheaper? One will hardly find the exact answer to all those questions when considering a well-flavored aromatic drink, as we are speaking of a tasty one.
Regularly proceeding with an in-depth statistics and analysis, coffee market experts are very unlikely to reveal the truth. They know that the average price may range from $0.5 to $1 per cup of your beloved espresso or Americano. Those drinks do not require additional ingredients like milk making cost price lower if compared with latte o cappuccino. Producers and marketers benefit from enormous revenues selling their products with up to 1000% markup. For this reason, the niche appears to have a great potential for businesses, which use all possible means to protect their segment keeping newcomers away. They established an average market price, which is about $1 per cup.
My colleagues often blame me for inventing efficient tools that reduce the influence of human factor. They often say I don’t like people.
Well, it’s true. You can’t like all the people, anyway. However, every time I share my ideas on the human factor, it does not mean I reproach filling station operators or other employees for being negligent or low qualified. You can always find a responsible and initiative person as well as those who suffer from a lack of ambitions being unable to perform an extra move. Some employees try their best to follow their duties and fulfill their every responsibility while other do not give a damn what employers expect from them. Others make efforts to be a real pain in the neck interfering with devices operation without having enough knowledge and operational skills.
Starbucks is having problems. Again. At this time, customers in California believe they have not enough milk in their latte. IMHO (personal opinion of the author), whatever has been written about Starbucks it’s more popular than all other coffee houses in America put together.
Any American shopping mall is full of coffee establishments, but half the tables there are usually free. Only at Starbucks you may see a line of people from opening morning hours till late at night before closing. It’s coffee culture and “spiritual braces”.
You can only manage what you can measure
Still, there’s actually a real problem remaining. Underfill of milk is the most common complaint of customers at gas stations. You will be surprised how easily it can be solved. Milk actually is poured badly because the coaffee machines aren’t being washed properly.
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