Using Food to Increase your Average Ticket Sales

coffee-shop-food-itemsOne of the easiest ways to increase your average ticket sales is to offer grab and go food items in your coffeeshop. When a customer is in a spending mode, they are open to paying a little bit more to get more. Having something as simple as a rack of granola bars by the register can actively increase ticket sales.

Sometimes we are afraid to ask our customers if they would like something else: a muffin, a granola bar or a cup of oatmeal. In reality, many customers see you and your staff as specialist who could suggest the perfect pairing for their latte. Spend an extra 2 seconds to make sure your customers are completely satisfied, the result could be surprising.

Offering food combos is a great way to add to your ticket sales. For example: suggesting that a customer could get their drip coffee for a dollar with the purchase of an oatmeal. Any type of promotion would work, just make sure it is clearly marketed.

It is important to keep on top of current trends, and know what your customers like. Stockton Graham & Co. offers KIND granola bars and oatmeal for purchase, but you could team up with a local bakery and offer muffins or scones. In a coffee shop where making specialty beverages is King, it is often best to offer food that doesn’t require “construction time” from your employees. This way they can focus on crafting beverages and moving on.

By having your food items properly displayed, using promos and making suggestions to your customers you could add to your ticket average. Adding just 25 cents to a ticket would increase your sales $25 per day for every 100 customers you have, or nearly $20,000 per year for the average café! So grab some granola bars, oatmeal or other fast to eat items, and start pairing them with your delicious coffee for happier customers and more profit.

Build Your Business: Mid-Year Checklist!

ChecklistAs hard as it is to believe, we’ve just about reached the halfway mark of 2013!  So far we’ve made it past the “New Year’s resolutions” in January, a few of the early-year holidays such as Valentine’s day, St. Patty’s day and Earth Day, spring has sprung and now summer is here. Though summer is a time for relaxing, 2014 will be here quicker than you think, so 3rd and 4th quarter preparation can never start too early. Here is a mid-year checklist, to get you and your staff ready for the next 6 months.

Hiring– With school out for summer, part-time opportunities in your shop may open up.  This can be a great way to grab some extra help while other staff members are out on vacation, but often times, younger employees are only available during the summer.  September is just around the corner, so when your temporary summer-employees return to school, make sure your shop is well staffed for the busy season to come.

Training– It is imperative that your entire staff is properly trained. The last thing you want is an unqualified barista in the middle of busy season, so take advantage of the summer and have your staff trained and ready to go before fall arrives.  Stockton Graham & Co. offers all the training you and your staff will need in our Coffee College courses. Taught by certified instructors, your staff will learn everything from pulling the perfect shot, to properly steaming milk, to preventative maintenance and more.  Call today to find out when our next coffee college is available!

Menu Cleanup– Now is the perfect time to revisit your menu and see what changes and/or additions need to be made.  If items such as iced teas, smoothies or frappes are not updated on your menu for the warmer months, they should be, or offered as a “Limited Time Offer”.  It’s also the perfect time to sample new products and add new items to your store.  From coffee to smoothies, Stockton Graham & Co. has dozens upon dozens of samples available for you! When things really pick up in the second half of the year, the time you have to sample and consider new products, will be harder to come by. Summer is also a good time to do a “Costs Benefits Analysis” to make sure you are making a profit on your drinks. Many times vendor prices rise a bit, and you can forget to update your menu pricing accordingly. Summer is a great time to make these menu adjustments.

Equipment Check– Just like your car, the equipment in your shop needs to be kept up and maintained. Coffee brewers, grinders, blenders and especially espresso machines all need to be operating correctly in order to produce quality product.  Here at Stockton Graham, we would be happy to recommend a technician for your area, or provide you with new equipment if it’s time for yours to be replaced. Right now we are offering several special offers on select Vitamix & Blendtec blenders, which includes free smoothie and/or frappe products. Use this blender promotion to re-vamp your blended drinks options this summer for bigger profits!

Marketing– By now, your shop probably has its own Facebook, Twitter or other forms of social media platforms. These are great tools to advertise and promote your business, but they are only as effective as you make them. It’s important to keep them up-to-date with current announcements, specials and new features. They’re easy to manage and can even be updated right from your phone. If you don’t consider yourself to be “social media-savvy”, have one of your trusted employees take the reins. Chances are, one of them is a “pro”.

Back to School– Come fall, everyone will return to their normal routine of school or work, both of which should result in more frequented visits to your shop. Student discounts and happy hour specials are great ways to get your customer base back into the swing of things. This is a perfect time to promote your menu with specials and other offerings, but in order for any promotion to be a success, preparation is required. Leave the procrastinating to the returning students, and start planning now! Check back with Stockton Graham & Co. blogs to get more ideas for back to school.

It may seem unnecessary to begin acting on these things now, but realistically, “pumpkin season” is just around the corner, and right behind that are the holidays. The 3rd and 4th quarters are traditionally the busiest, but also the most profitable, so ensuring that you and your staff are well prepared is essential. Call us today at 800.835.5943 to ask more about your mid-year checklist, and other ways to plan for a successful second half of the year!

Using Marketing to Grow Your Cafe’s Profits! (Part 3)

Map-photoIn Part 1 and Part 2 of “Using Marketing to Grow Your Cafe’s Profits in 2013!” we have discussed the importance of preparing to market your store in your own neighboring area to achieve more sales. In part 3 we are going to discuss F.A.T. and how it will help your business grow. By focusing on more Frequent visits from customers, increasing ticket Averages and attracting new customers to Try you out, you can achieve remarkable, compounding growth in your business. That is, focus your efforts and resources on the most overlooked aspect of the Pyramid of Profitability– Promotion.

By now, you have completed your Marketing Area Profile (MAP), your store has been spruced up, your staff look the part and you are aware of your customer’s needs. You are compiling an action plan to FAT-ten your bottom line. Let’s tackle each aspect of F.A.T. with some examples of how to achieve real, sustainable sales and profit growth.

Frequency of Visit:
How often do you see your most loyal customers? Four or five times a week, right?  How about customers that you know, but you do not see every day?  Chances are they still drink coffee every day, just not with you. How do you convince them to come to you every day, and what would that really mean to your sales volume?  One of the easiest ways is to offer incentives such as loyalty rewards or bounce-back offers. The most common loyalty reward is the “Buy 10” card.  After ten drinks your customer earns a free beverage of their choice, and who doesn’t like free stuff?  How about an over-achiever’s card?  This card only has to have 4 punches, but the catch is, the customer must come back Monday, Tuesday, Wednesday AND Thursday to receive a free beverage on Friday. Another way to get folks in more often is bounce back coupons for a different part of the day.  For instance, hand out coupons in the morning valid from noon to close on iced beverages, lunch items, dinner-time options etc…

If you convince just one customer a day to visit one more time per week, your sales could increase by over $30,000 per year.

Ticket Average:
This is perhaps the easiest of the all the ways to grow your top line sales. People who are already handing you money are the easiest to convince to spend more.  Remember, “Would you like fries with that?” We are often afraid to ask our customers if they would like something else, we allow our staff to get into churn and burn mode, when really, our customers might actually have wanted a muffin, a granola bar, a cup of oatmeal or a bottle of water. If we instead spend an extra 2 seconds to make sure our customers are completely satisfied, the result could be surprising. Here are some techniques to help increase ticket averages: do not assume the smallest size, if a customer doesn’t specify, ask if they would like the large size.  Did you just bake some cookies, make sure they know these are still hot and gooey.  Offer combos, “Did you know you could get your coffee for just $1 if you buy a muffin too?”  Look for clues that will help you anticipate future needs. For example: if a customer that stops by while out on a bike ride, make sure to remind them that you sell bottled water or other forms of hydration to take with them.

If you can add just 25 cents to your ticket average, your sales would increase $25 per day for every 100 customers you have, or nearly $20,000 per year for the average café.

Trial (New Customers):
Getting a new customer through your door is the holy grail of marketing for a coffee shop.  A large portion of your marketing efforts should be focused on gaining new customers, and building your customer count.  The best opportunity is right out your front door.  Focus on people that live, work and play very close to your shop.  Consult your MAP to see where you can find these people. When you find them, your aim is to get them to try your products. The easiest way is to give it away (again, everyone loves free stuff). If you’re truly prepared with great products and great service, chances are you’ll have a new fan. Win them over with a better experience and they will come back, and who knows, they might bring others with them next time.  Always have coupons or VIP cards with you, these can be handed out at your discretion to potential customers wherever you happen to be. You and your staff should always be on the lookout for new faces, and make sure these people feel extra special the first time they come in. You may only get one chance to impress them!

Each customer can be worth $1000 or more per year, so if you can convince a new potential fan to break their routine and try you out, you have a golden opportunity to grow. Just add one new loyal customer a week and BOOM, you could see your sales grow by another $52,000 in the first year.

By setting very small attainable goals: one new customer a week, increasing visits from current customers by one a day and adding just 25 cents to your ticket average, you could see your sales increase by $80,000 or more in the first year, adding upwards of $50,000 to $60,000 to your bottom line. The amazing part is that it doesn’t stop there. If you continue on this track, your store will be as busy as you imagined, your customers will do the marketing for you, and all the small stuff you used to sweat to save a buck will be a distant memory.

To request your Marketing Area Profile, or learn more about marketing for your area, please call your Customer Care Associate at (800) 835-5943.

This blog series focuses on Promotion or marketing, one of the 5 fundamentals of our Pyramid of Profitability.

Written by: Thom Swain – Business Development Representative