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coffee quality improving profitability

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"coffee quality improving profitability" presented by Andrew Hetzel of Cafemakers at the 2006 National Coffee Association Fall Education Conference in New York

"coffee quality improving profitability" presented by Andrew Hetzel of Cafemakers at the 2006 National Coffee Association Fall Education Conference in New York

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    coffee quality improving profitability coffee quality improving profitability Presentation Transcript

    •  
    • coffee quality improving profitability andrew hetzel cafemakers, llc hawaii, usa
    • restaurants that continue to serve coffee as an afterthought trying to play catch up, even as economic forecasters predict a continued financial pinch for the country in general jan ‘03 qsr magazine
    • benefit
      • national retailers upgrading quality
      • motivation
        • profit
        • customer retention
        • strengthen brand
    • dunkin’ the competition
      • 67% sales
      • krispy kreme in financial crisis
      • espresso beverage platform “ enormously successful ”
    • re-ten-shun
      • chik-fil-a upgrades coffee program
      • drive-thru operators notice competitors coffee in customer vehicles
      • 45% price increase
      • coffee sales double
    • if customers were willing to make two stops in the morning to get an exceptional cup of coffee, there was a big opportunity to create value for them by upgrading our offerings mike falkenberry chik-fil-a
    • borders cafe
      • pioneer (early ‘80s)
      • 1400 sq ft
      • enhance buying experience
      • august 2004 began upgrades
    • textbook example
      • 465 cafes
      • 70% upgraded by 2007
      • metrics
        • % of business
        • same store sales
        • growth of category
    • cafe and gift and stationery categories positively impacted comparable store sales in remodeled stores, resulting primarily from the conversions of cafes to the seattle’s best coffee brand borders group
    • café unbound
      • menu changes
        • coffee focus
        • reduced merchandise
        • streamlined food
      • fixtures
      • equipment
    • café unbound
      • brand
      • ingredients
      • store placement
      • emphasis as independent business
      • retained employees
    • by the book
      • $2.8 mil retail sales @ 25%
      • $150k conversion estimate
      • $400k sales estimate @ 50%
    • mcdonald’s july 2006 same store sales increase: us 1.9%, europe 5%, asia 5.4% ceo jim skinner credits “breakfast and premium-roast coffee.” mcdonald’s
    •  
    • mccafe
      • increase breakfast sales
      • npd research:
        • 37% breakfast orders include coffee
        • coffee is #1 breakfast food item
    • mccafe
      • 1000 world-wide
      • australia, nz, germany, us (test)
      • rebuilding brand
        • broadening demographics
        • lounge atmosphere
    • mccafe germany
      • extremely successful
        • milk sales rising with coffee consumption
        • italian / american-style
      • 200 locations; 500 projected
      • shop-in-shop concept
      • good buy-in with franchisees
    •  
    • not clowning around
      • US$1.5 mil avg store sales @ 31%
      • 10-11% sales increase at mccafe locations
      • $150k @ 50%
    • good cents
      • additional sales
      • customer retention
      • brand enhancement
      • increased profitability
    • questions, copies or help andrew hetzel cafemakers, llc hawaii, usa +1 (808) 443-0290 info@ cafemakers .com