July 8th, 2010
A lot of times when new coffee shop owners first start the process of opening a coffee shop they prepare a coffee house business plan that accounts for the exact cost of every item they plan to install or use in their coffee house. These planning stages are extremely important to making their small business successful and one false move could mean disaster.
When working with customers who are considering opening a coffee shop business the most important tip we give is to double the costs in your coffee house business plan. In any small business project there are unexpected costs so by doubling the amount of money you think you will spend on your coffee house you are preparing yourself for these surprise investments. Additionally, if you are down to the penny in your coffee shop business plans how will you handle the costs that come AFTER you open? How will you afford to market your coffee shop or hire employees so you can get out in the community? These are the questions most people opening a coffee house don’t ask themselves.
In our years of business we have rarely heard anyone say they spent less than they budgeted in their coffee house business plan. The reality is opening a coffee shop (or any small business) is expensive and time consuming, but the reward of working for yourself and your community are well worth the investment.
Tags: coffee house business plan, opening a coffee house, opening a coffee shop, small business success factors
Posted in News from CrimsonCup Worldwide Headquarters, Owning a Coffee Shop | 1 Comment »
June 30th, 2010
Crimson Cup began producing posters featuring special drinks several years ago. Our point of purchase (POP) program has given us many coffee shop marketing ideas and we are continually improving it based on our experiences running a coffee shop. As coffee house operators we want our customers to know what they want when they step up to the counter. This reduces the amount of time customers behind them have to wait and makes for a better experience.
Even better, POP marketing materials can increase sales. Sounds obvious, right? Of course marketing materials increase sales; that’s what they are for isn’t it? Used solely at the point of purchase, marketing materials are valuable in converting a drip coffee customer to a specialty drink. This minor switch does increase the average ticket but it doesn’t bring new customers in the door. In order to achieve small business marketing success it’s important to introduce new customers to your store. Here’s how we are using our POP materials to generate new business:
1. To capture our existing customers we place a drink promotion poster in our poster stand and on the wall next to the menu. We also have table tents on the tables and 8 1/2 X 11 versions of the poster on the counter and in the drive-thru window.
2. To capture customers who drive by we have an A-frame with the name of the drink promotion in easy to read lettering and a yard sign is out by the drive-thru menu.
3. To reach the potential customers in the surrounding community our coffee shop marketing team often hands out $1.00 off coupons at local community events.
4. To capture additional potential customers we use a jpeg image of the drink promotion on our Facebook page, website and blog. We also tweet out the image to our Twitter followers.
By implementing these coffee shop marketing ideas into our coffee house business plan our coffee shop has enjoyed great successes. This success didn’t come easy; there has been a marketing plan for growth in place since day one. We have learned from our successes and failures and our plan has evolved. One key to small business marketing success is diligently implementing the plan. By continually implementing a marketing plan you will begin to realizing your full sales potential.
By Chris Lamb, Retail Development Manager
Tags: coffee house business plan, coffee shop marketing ideas, running a coffee shop, small business marketing success
Posted in News from CrimsonCup Worldwide Headquarters, Owning a Coffee Shop | 1 Comment »
June 28th, 2010
Coffee is a great product to build a business around. The drink – along with all of its sweet and cream varieties – is becoming increasingly popular with consumers. In fact, after oil, coffee is the most traded commodity in the world. But starting a business without a plan is never a good idea. That’s why you should develop a coffee shop business plan before getting started.
There are a few different business plans to choose from when deciding to open a coffee shop. The first key is to decide what kind of coffee business you want to operate. Each of the following business plans has its own unique advantages and disadvantages.
The first option for your coffee shop business plan is to purchase a franchise, which allows you to own and operate a chain of an existing coffee shop. This is a good business plan because opening a franchise of an existing coffee shop chain guarantees consumer familiarity with your product. You will also benefit from corporate branding and marketing, which is often executed at a national level.
You can also choose to open an independent coffee shop. This is a great business plan for people who are looking for a little more flexibility when it comes to store location, operating hours and product. Entrepreneurs who open independent coffee shops can offer a wide selection of coffee beans from different growers.
A lesser known coffee shop business plan lies somewhere in the middle. There are some coffee producers who will allow you to sell their coffee – including secret latte recipes and more! This allows the entrepreneur to own his or her own coffee shop that is not tied to the strict guidelines and regulations of operating a corporate franchise while still benefiting from brand name recognition. This coffee shop business plan provides an excellent combination of flexibility and security.
Find coffee shops that will let you sell their coffee in your store.
Tags: business plan for a coffee shop, coffee house business plan, coffee shop business plan
Posted in CrimsonCup vs. Coffee Franchise, Owning a Coffee Shop | No Comments »
