Coffee roasters think that the best way to grow their sales is by roasting better quality coffee or by adding more types of coffees to their menu. This would work if business and success were that straightforward. Are you still struggling to get your coffee shop out of the startup phase? Do you think you are investing a lot and not getting enough in return? Growing this business is not just about including the latest trends like gourmet coffees and healthy snacks. It’s more about knowing and implementing selling strategies to increase your turnover and profitability. Below are some tips and tactics to maximize your coffee shop revenue. 

Simplify your Menu and remove low margin items

Lack of focus can gradually weaken profitability. While you may be diversifying your menu by adding more items thinking it will attract more customers, you may not realize that this will make you lose sight of the core products that define your business. These items will launch an image that your restaurant does not specialize in coffee, while also rising cost bases and deteriorating carefully prepared margins.

Simplify your menu and eliminate low margin items while focusing on the most profitable items sold. By removing items that do not support the sale of coffee, you will intensify the image of your brand and also reduce your costs. Emphasize on most profitable items on your menu boards and advertisements. Encourage your customers to order items that benefit your business the most.

Cut down on Coupons and Discounts

While giving out coupons and discounts to your customers may encourage them to come back for more, you might not realize you’re giving them away in excess. Many successful cafes do not give out coupons and discounts because they believe that the most valuable customer demographic of daily coffee consumers is not affected by discounts or coupons, rather only infrequent consumers or opportunists get a chance to use them only on your sale day.

Stop giving out coupons and discounts and focus on promotions that will attract customers to your regular items rather than discount products. This will eventually help you improve your NPS in the long run.

Know your costs and Increase margins

You will not profit out of anything if you don’t know what it costs and what your markup should be. There is no point of selling an item at a high price point if that same item is costing you a lot to make. Instead, focusing on the items with the highest margins will turn out to be profitable. For example, cold brew is cheaper to prepare but can be sold for higher margins, which is more important than a high price and more profitable.

Increase prices to elevate your brand image. Prices speak for a perceived value of a product.  If it is too low, your customers will believe that your beverages are not as good quality as other restaurants that are pricey, even when they may be better.

Control waste

Are your workers pouring a lot of milk down the drain? Are you wasting a lot of coffee pulling shots over again? Search out everything that is decreasing your profits and eliminate them. Analyse every penny you spend. Review sales and inventory reports to assess ingredient waste due to unskillful preparation returned drinks and employee utilization.

Evaluate working hours

Analyze what hours you make the most business and the hours when no customers show up. There is no need to be open during those hours when there is regularly no customer traffic. If Sundays are always typically slow days for your business, cut down your open hours for that day or remain closed.

Sales contest for Employees

Your workers and baristas have a great impact on the customer ordering process. They should have some form of restaurant training for better sales and customer dealing to make each transaction active, rather than passive.

Conduct sales contests emphasizing high margin items and reward them to encourage more sales. This will turn out to be fun and engaging for staff and will yield results.

Keep loyal customers

Your regulars customers are the driving force to your business. Research shows that it costs five times more to acquire a new customer than to retain an existing one. Loyal customers bring their friends along and in turn create more customers for you.

Incorporate loyalty programs for repeat customers and acknowledge and appreciate them for bringing in new customers for you. A small gesture can go a long way. If you can’t afford loyalty programs then just try doing something small for loyal customers like giving them a free drink every once in awhile or letting them sample new special items before launching them. Try to make them feel special and remind them that you value their business.

Promotions at the point of sale

Ever made a last moment decision of buying a chocolate or candy at the cash register? We’ve all been there. Most stores create tactical promotions at sales points to increase their turnover and bottom line margins. Surveys show that 82 percent of mass merchant purchase decisions are made inside a store rather than before coming to the place. This means that people buy things they don’t intend to i.e they’re buying on impulse.

These impulses are due to human psychology, as buying this way relates to a variety of emotions including sadness, anxiety and mood. These emotions serve as key drivers of consumer behaviour. So consider adding small and affordable items near your cash register, or near the place where they wait in line. Items like chocolates, candies, magazines, gift cards or whatever you think your customers might like can be included.

These point-of-sale items should be priced competitively with a clearly defined value proposition so that customers do not get deterred from buying them. Also, make it a point that your current sales promotions are visibly advertised at the point of sale. This strategy is sure to increase your turnover and profitability.

Social media

Social media marketing gives you the power to increase your business’s recognition and revenue with little to no cost. People are using social media sites to stay connected to their friends, family, and work. Since they are already there, why not throw your brand into the mix? They are bound to mention your coffee shop to a friend when your products or services are needed, providing you with social proof of its quality.

According to Social Media Examiner, about 96% of companies who market, are currently participating in social media marketing. Social networks are now a valuable part of every marketing strategy, and the outcomes are so great that anyone not utilizing this resource is missing out on a remarkable marketing opportunity.

About the Author

Lisa Brown has been helping her readers in successful business and entrepreneurial strategies for the past 3 years. She currently works with uae.ekuep.com, which is the answer to UAE’s growing restaurant industry. Ekuep is the brand that restaurants, bakeries, cafes, juice bars, and more turn to when they want to stock their kitchens with only the best restaurant equipment.