This document discusses trends in the coffee market for convenience stores and the profit potential of specialty coffee programs. It notes that consumers frequently stop at convenience stores for coffee, presenting an opportunity. Well-run coffee programs can be highly profitable, with potential gross profits of over $40,000 per year for stores selling 100 cups per day. Upgrading equipment, expanding coffee options, and using merchandising can increase total coffee program sales by 10-25%.

1. “The Quest for Perfection”
Specialty Coffee Convenience Store Program
Mister Koffee Service / 1-800-443-1340 /
www.misterkoffee.com

2. Coffee Trends
 Consumers stop to buy coffee more than they fill up
their cars, providing convenience stores with a great
opportunity to build loyalty and repeat sales.
Convenience stores are a preferred destination for
coffee.
 Roughly one of every five (18.3 percent) cups of
coffee purchased by consumers in 2005 was bought at
a convenience store.
 Ninety percent of convenience store customers
purchase coffee at a convenience store over any other
retail format.
 Americans purchase coffee at convenience stores/gas
stations more than anywhere else. 39% of customers
purchase coffee at convenience stores, compared to
38% at local coffee shops/restaurants, and 35% who
bring coffee from home.
 The percentage of coffee buyers who know they were
going to purchase coffee when they entered a
convenience store is 96%; making coffee the TOP
planned purchase in a convenience store.
• (Source: NACS, updated July 2006)
Mister Koffee Service

3. “Even before the gourmet coffee craze lit a fire
under the category, it was ounce for ounce one of
the top food service profit makers in the
convenience store industry.
Profit potential has continued to grow in recent
years, but that growth is handcuffed to higher
consumer expectations. In order to seize those
extra dollars, it’s not enough to brew a better cup
of coffee, they must also convince customers that
it’s a better cup of coffee. That takes marketing.”
Convenience Store News
Mister Koffee Service

4. Profitability
Many store owners do not understand the
profitability potential of a well run coffee
program.

5.  Retail Coffee Profitability Analysis.
Coffee cost per 64 oz. Pot = $.90
($75.00 per 84 count case)
Cup, Lid, and Condiments
$.59/Pot or $.13/Serving for Cup, Lid and Condiments
Total Cost/Pot= $1.49
Gross Sale/Pot= $3.95
Net Revenue/Pot= $5.46
(Yield = 45, 12oz. Cups per pot @ $1.39 retail price per cup)

6. Cups/Da GP/Cup GP/Day GP/Week GP/Year
y
20 $1.10 $22.00 $154.00 $8008.00
35 $1.10 $38.50 $269.50 $14014.0
0
50 $1.10 $55.00 $385.00 $20,020.
00
100 $1.10 $110.00 $770.00 $40,040.
00
150 $1.10 $165.00 $1155.00 $60,060.
00
*based on $1.39 retail and $.29/cup cost including condiments,
cup, lid, etc.

7.  Typical program results experienced
indicate increases of 10% when
retailers utilize a complete
Merchandising Point Of Sale
Program.
 Incremental coffee sales of 10% to
25% are common when Dark
Roasts and Flavored coffees are
offered in addition to regular and
decaf.
 Total program sales often increase
by 10% to 25% or more when
retailers upgrade their coffee
program to include an enhanced
program presentation and product
offering.

8.  The best way to extract increases for your
program are by adding components to the
program or changing the appearance of the
program.
 The components are:
 Merchandising POS material to help “dress up” the coffee
service area and upgrade the overall appearance of the
store.
 Equipments updates & upgrades. Upgrading the
equipment, service counter, and signage will all help the
consumer form a more positive image of the program.
 A balanced coffee menu. Offering the correct coffee blends
When all of pack weights, including dark roast, Origin increaseand
and these methods are combined, a 25% sales coffee, is a
flavor options are possibly the most effective method to
normal outcome, and will produce great profitability results!
increase sales.