You have probably heard us talk about the profitability of a bulk & retail coffee program before, and we know from experience that it is a great idea! Twenty years ago this May, our CEO Jeff Vojta and his business partner started a little coffee shop in Raleigh, NC, called Classic Coffees which would later become Stockton Graham & Co. Back in 1994, there wasn’t much to go on in terms of how to run a coffee shop. Starbucks wasn’t yet a household name, and the specialty coffee industry was still in its infancy. Our founders had to experiment with what worked, what failed and what could be improved upon. One of the best revenue streams turned out to be Classic Coffee’s bulk and retail coffee offerings. They started small with only 5 or 6 offerings in their program, and within 2 years they had over 100 different coffees available.
The bulk and retail coffee program in the original store is one of the key factors Jeff attributes to the store’s success. Jeff has said, “Shops that properly implement a robust bulk coffee program can expect a 40-50% increase in gross coffee and coffee beverage sales.” One of the ways that a bulk coffee program can help your store do this is by increasing customer loyalty. You see your best customers 3-5 times a week, but they drink coffee everyday. Is it your coffee? If they aren’t using beans bought from your store, they are buying them from somewhere else. Instead of losing the business to some other store or supermarket, offer customers the same great coffee you serve as a retail option! Selling take-home coffee adds to incremental sales, helps you rotate your stock more quickly, and keeps you relevant with your customers on a daily basis. They are more than likely to share it with friends and family and come back to you with future business! What a great way to market to new potential customers!
Thinking about starting your own bulk and retail coffee program? Here is what Jeff did at Classic Coffees to increase both sales and customer loyalty:
What Jeff did:
- Made the beans accessible to customers to see, smell and taste
- Educated staff and customers about the coffees
- He had a separate help line for those stopping in just to buy beans
- Had over 100 selections of coffee
- Offered shipping and gift baskets
For more information about bulk and retail coffee programs, give your Customer Care Associate a call at 800.835.5943.
Want to private label your retail coffees? Read more about our private label program here.
Need point-of-sale materials to support your retail or bulk team program? Read how we can help here.