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Specialty Retailing- Coffee Shops                              Presented by:-  Reena Alva -        04 			                      Vicky Barot-         06 Presented to Dr. A. KaulRishabhKapoor- 33 Nikunj Shah-       24(B)
Introduction Traditionally, India has been a tea loving country. India has now become one of the fastest growing coffee markets in the world.  Organized coffee retail business in India at over Rs 8 billion with the potential space for nearly 3,000 coffee retail outlets in India. According to industry sources, coffee consumption has shot up from 55,000 tonnes to 80,000 tonnes since the liberalisation of the economy in 1991.
Current state of some major players CCD (Café Coffee Day). It took the company nearly 6 years to reach the 35 store mark.(Barista had become the market leader with more than 85 stores).  Today they operate nearly 700 stores in India. Growth plan of opening 1,000 cafes by 2010 marking its presence across 102 Indian cities and also establishing 50 cafes in 10 foreign countries.
Barista The problem with Barista was that it started a bit ahead of its time and before it could mature it saw several changes in the ownership (Tata's -> Sterling  ->  Lavazza). Today it operates around 200 stores and seems to be back on track.  They brought in international experts from Italy to design outlets/ambience and to train staff.
Costa Coffee British coffee retail chain Costa Coffee launched its outlet in New Delhi, becoming the first international coffee chain to start operations in India in September 2005. The chain is currently operational with 36 outlets and expanding aggressively to tap this potential market.
Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multi-products offering outlets like Reliance Timeout and Desi Café respectively.
Coffee Shop Branding with Decor and Furniture Retail decor is extremely important for two reasons: ,[object Object],And ,[object Object],[object Object]
There is no single model of how retail coffee shops must be designed, nor features that must be included in every circumstance.  Every business should choose a retail format and design elements that project the brand’s unique statement (e.g. “We’re good,” “We’re fast,” or “We’re cheap”), while also creating a desirable environment for consumers that is not duplicated elsewhere.
Using common elements like “comfy chairs,” artwork  only creates brand confusion with thousands of similar businesses in markets across the country.  The generic ubiquity of garage sale decor and its negative association with typical independent retail shops today can alone create a preconception of mediocre food and beverages in the mind of consumers that will hamper sales — regardless of the actual quality of what is served.
More than just a sip... !!!
More than just a sip... !!! Not just coffee - an ever increasing list of soft drink concoctions with snacks and mini-meals A happening beverage – From 175 in 2002 to more than 5000
STRATEGIES Stretching the brand 60% of the sales are of products other than coffee A venue to socialise, finalise business deals, conduct interviews, listen to music and read in Unaffected by consumption pattern
Extending Network The advent of night-time work enterprises Youth migrating to cities Targeting the power of youth and their disposable income
Barista’s Bean Targeting college students in the age range of 16-20  "catch them young" and induce "lifetime loyalty” Recreate the ambience and experience of a typical Italian espresso bar Had newspapers, magazines, guitars, board games
Diluted its upmarket sheen "platforms on the go"  Barista espresso bars, shop-in-shops and corner stores
CCD’s Cup Incorporates health foods like herb breads, sunflower seeds, multigrain breads and bran sandwiches Premium coffee, filters, mugs, and message T-shirts Marketing associations with youth-oriented brands like Levis, TVS, Airtel, AOL
 Affordability Well lit and respectable, yet informal Launch 25 café a month – Never be more than 5 minutes away from a CCD
Mocha’s Sip Focus on imported coffees and an upmarket clientele Few in Number  Focus on knowledge building and management Rs 3 crore in human resource development    	Rs 8 crore on the development of new menu items every year
Developing Customer Relationship in your Coffee Shop You can create excellent customer relationship masters by focusing on 3 things:  	* Your hiring process  	* Your training program  	* Your personal management style
HIRING PROCESS In the retail coffee business, your barista is the central key to your success The first thing to look for is brightness and a perfect fit into your company culture.
2 factors that a barista should possess 	1. Personality that suits the business: 		-You can teach any potential barista coffee-	making skills, company procedures and 	other chores, but you can't teach 	personality 	2. Ability to work in a team: 		-Team concept is important when two 	baristas working the same shift are 	interacting with each other and their 	customers in a confined space
TRAINING PROGRAM  Concentrate on Customer Relationship Training: Training program should not be focused solely on professional drink-making techniques. Should be focused on the Baristas interaction with the customer
4 tips in barista customer relationship training * Role-play to ensure everybody not only hears, but also practices engaging customer relationship marketing.  * Teach better listening skills and the ability to focus directly on each customer.  * Teach baristas to take personal ownership of customer concerns and needs.  * Train all staff to accept responsibility outside their assigned responsibilities.
MANAGEMENT STYLE Making Happy Employees: Many managers pay no attention to their people, until they catch them doing something wrong If you focus more on the positive traits, it helps create huge momentum in the development process of your employees
 Positive interactions and experiences make for happy employees The simple formula here is – ‘Happy employees treat your customers like gold.’ 2. Give the employees a sense of ownership Make them feel like they are critical to the success of your business
3. Celebrate success together Regularly reward your staff in personal and surprising ways for helping you run a profitable business Need not be monetary: It can be a sincere praise for a job well done, a special day off, or just a note or voicemail telling them how glad you are that they are on your team
Steps to Successful Coffee Merchandising
From Small Coffee Shops to the Discovery of  	Espresso Machines. With 1000+ outlets the Big Giants have changed things even more.
Retailers need to provide accessible, straightforward information  The coffee store and merchandising will get benefitted from a Good cup of coffee – a product mix which is hot, fresh and stimulating.
The staff should know every step of coffee story right from beans to cup……… The Drinks Menu should be as simple as possible
Merchandising beans is one of the most difficult aspects of the specialty coffee business.  One of the great debates in specialty coffee      retailing today is whether to emphasize origin     coffees or to focus on proprietary blends.
In coffee merchandising one of the best and most powerful tools you have at your disposal is the smell of coffee. Fine tune Pricing of Merchandises for achieving trade off between turnover & Margins.
There is a layer of Artificial Merchandising that crowds out the basic Message                   “ Great Coffee Sold Here”
INVENTORY CONTROL
Important Points for Specialty Coffee Retailer Know the customers well. The Business is based on trusting relationships that is built over time. The barista is the owner’s stand-in. Don’t be self driven, be customer driven.
Have Industry Information as well. Customize your Menu Celebrate Every Employee’s success.
Thank you
Speciality Retailin Coffee Shop

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Speciality Retailin Coffee Shop

  • 1. Specialty Retailing- Coffee Shops Presented by:- Reena Alva - 04 Vicky Barot- 06 Presented to Dr. A. KaulRishabhKapoor- 33 Nikunj Shah- 24(B)
  • 2. Introduction Traditionally, India has been a tea loving country. India has now become one of the fastest growing coffee markets in the world. Organized coffee retail business in India at over Rs 8 billion with the potential space for nearly 3,000 coffee retail outlets in India. According to industry sources, coffee consumption has shot up from 55,000 tonnes to 80,000 tonnes since the liberalisation of the economy in 1991.
  • 3. Current state of some major players CCD (Café Coffee Day). It took the company nearly 6 years to reach the 35 store mark.(Barista had become the market leader with more than 85 stores). Today they operate nearly 700 stores in India. Growth plan of opening 1,000 cafes by 2010 marking its presence across 102 Indian cities and also establishing 50 cafes in 10 foreign countries.
  • 4. Barista The problem with Barista was that it started a bit ahead of its time and before it could mature it saw several changes in the ownership (Tata's -> Sterling -> Lavazza). Today it operates around 200 stores and seems to be back on track. They brought in international experts from Italy to design outlets/ambience and to train staff.
  • 5. Costa Coffee British coffee retail chain Costa Coffee launched its outlet in New Delhi, becoming the first international coffee chain to start operations in India in September 2005. The chain is currently operational with 36 outlets and expanding aggressively to tap this potential market.
  • 6. Retail players like Reliance Retail and Shoppers Stop are also retailing coffee with their multi-products offering outlets like Reliance Timeout and Desi Café respectively.
  • 7.
  • 8. There is no single model of how retail coffee shops must be designed, nor features that must be included in every circumstance. Every business should choose a retail format and design elements that project the brand’s unique statement (e.g. “We’re good,” “We’re fast,” or “We’re cheap”), while also creating a desirable environment for consumers that is not duplicated elsewhere.
  • 9. Using common elements like “comfy chairs,” artwork only creates brand confusion with thousands of similar businesses in markets across the country. The generic ubiquity of garage sale decor and its negative association with typical independent retail shops today can alone create a preconception of mediocre food and beverages in the mind of consumers that will hamper sales — regardless of the actual quality of what is served.
  • 10. More than just a sip... !!!
  • 11. More than just a sip... !!! Not just coffee - an ever increasing list of soft drink concoctions with snacks and mini-meals A happening beverage – From 175 in 2002 to more than 5000
  • 12. STRATEGIES Stretching the brand 60% of the sales are of products other than coffee A venue to socialise, finalise business deals, conduct interviews, listen to music and read in Unaffected by consumption pattern
  • 13. Extending Network The advent of night-time work enterprises Youth migrating to cities Targeting the power of youth and their disposable income
  • 14. Barista’s Bean Targeting college students in the age range of 16-20 "catch them young" and induce "lifetime loyalty” Recreate the ambience and experience of a typical Italian espresso bar Had newspapers, magazines, guitars, board games
  • 15. Diluted its upmarket sheen "platforms on the go" Barista espresso bars, shop-in-shops and corner stores
  • 16. CCD’s Cup Incorporates health foods like herb breads, sunflower seeds, multigrain breads and bran sandwiches Premium coffee, filters, mugs, and message T-shirts Marketing associations with youth-oriented brands like Levis, TVS, Airtel, AOL
  • 17. Affordability Well lit and respectable, yet informal Launch 25 café a month – Never be more than 5 minutes away from a CCD
  • 18. Mocha’s Sip Focus on imported coffees and an upmarket clientele Few in Number Focus on knowledge building and management Rs 3 crore in human resource development Rs 8 crore on the development of new menu items every year
  • 19. Developing Customer Relationship in your Coffee Shop You can create excellent customer relationship masters by focusing on 3 things: * Your hiring process * Your training program * Your personal management style
  • 20. HIRING PROCESS In the retail coffee business, your barista is the central key to your success The first thing to look for is brightness and a perfect fit into your company culture.
  • 21. 2 factors that a barista should possess 1. Personality that suits the business: -You can teach any potential barista coffee- making skills, company procedures and other chores, but you can't teach personality 2. Ability to work in a team: -Team concept is important when two baristas working the same shift are interacting with each other and their customers in a confined space
  • 22. TRAINING PROGRAM Concentrate on Customer Relationship Training: Training program should not be focused solely on professional drink-making techniques. Should be focused on the Baristas interaction with the customer
  • 23. 4 tips in barista customer relationship training * Role-play to ensure everybody not only hears, but also practices engaging customer relationship marketing. * Teach better listening skills and the ability to focus directly on each customer. * Teach baristas to take personal ownership of customer concerns and needs. * Train all staff to accept responsibility outside their assigned responsibilities.
  • 24. MANAGEMENT STYLE Making Happy Employees: Many managers pay no attention to their people, until they catch them doing something wrong If you focus more on the positive traits, it helps create huge momentum in the development process of your employees
  • 25. Positive interactions and experiences make for happy employees The simple formula here is – ‘Happy employees treat your customers like gold.’ 2. Give the employees a sense of ownership Make them feel like they are critical to the success of your business
  • 26. 3. Celebrate success together Regularly reward your staff in personal and surprising ways for helping you run a profitable business Need not be monetary: It can be a sincere praise for a job well done, a special day off, or just a note or voicemail telling them how glad you are that they are on your team
  • 27. Steps to Successful Coffee Merchandising
  • 28. From Small Coffee Shops to the Discovery of Espresso Machines. With 1000+ outlets the Big Giants have changed things even more.
  • 29. Retailers need to provide accessible, straightforward information The coffee store and merchandising will get benefitted from a Good cup of coffee – a product mix which is hot, fresh and stimulating.
  • 30. The staff should know every step of coffee story right from beans to cup……… The Drinks Menu should be as simple as possible
  • 31. Merchandising beans is one of the most difficult aspects of the specialty coffee business. One of the great debates in specialty coffee retailing today is whether to emphasize origin coffees or to focus on proprietary blends.
  • 32. In coffee merchandising one of the best and most powerful tools you have at your disposal is the smell of coffee. Fine tune Pricing of Merchandises for achieving trade off between turnover & Margins.
  • 33. There is a layer of Artificial Merchandising that crowds out the basic Message “ Great Coffee Sold Here”
  • 35. Important Points for Specialty Coffee Retailer Know the customers well. The Business is based on trusting relationships that is built over time. The barista is the owner’s stand-in. Don’t be self driven, be customer driven.
  • 36. Have Industry Information as well. Customize your Menu Celebrate Every Employee’s success.