A while ago, my friend and I were discussing food with the
owner of Village Coffee. We thought good was a loss leader, one of these things
you have to have but doesn’t make any money. She argued that her food actually
helped her business and was profitable. I found that interesting, because
anyone who has worked in a coffee shop and has had to clear out the expired
pastries knows that a lot of it goes in the garbage.
So I ask, how important is food in a coffee shop?
For me personally, food is not that important. I go to a
coffee shop for coffee, and that’s about it. I may work on my laptop or meet up
with friends, but it usually isn’t to have lunch. It’s to have coffee. I think
the majority of people are that way too. I see the cost and size of the
pastries and usually think it is a rip off, which makes sense, because you have
to pay for convenience.
I would say the primary reason for me buying food at a
coffee shop is either the need for something sweet (yeah, I have a sweet tooth)
or for a review. That’s about it. I don’t have lunch at coffee shops and I have
a hard time thinking my coffee would go well with a sandwich. (I will admit
that Az doesn’t have a lot of opportunity for this, so I could easily be
surprised.) I can easily believe that a lot of people are like this as well.
I did some poking around the interweb and found this article
that I liked a lot: http://drinks.seriouseats.com/2011/08/opening-a-coffee-shop-advice-for-cafe-owners-tips-mistakes-to-avoid-small-business-owner.html.
The core of the message is keep it simple. There is value to having food
because a lot of foods bring out flavor in coffee. I would keep it simple
though. Rather than have 20 different types of pastries, I would only have a
few that pair specifically with my coffee. Then have a few constants that have
longer shelf lifes and sell quicker (chocolate chip cookie, biscotti, short
bread cookies, etc).
This article lists some food items coffee shops are known
for: http://www.lamag.com/digestblog/12-coffee-shops-that-also-serve-great-food/.
I noticed a couple of things here. 1) A big draw is that coffee shops partner
with local pastry companies to team up and be mutually beneficial. I see this
as a win-win. That companies reputation and advertising would push people to my
store. That is like free marketing. I may also be able to minimize risk by
allowing the pastry company rent the space in my shop. That could reduce my
margins but also reduce my loss as well. I would really have to dig into this
to determine the best approach. 2) Most of these shops are known for something
specific. They pick something and do it well enough to be recognized for it. If
you are going to have food, it needs to be a draw by itself. Then you can
create add-ons. The coffee people will try a pastry and the pastry people may
add a coffee.
I do believe food is important. I think it needs to be
balanced with the core values of the shop and try to be a different company
within a company. It also has to be managed well. If it isn’t managed, you will
basically just throw money into the garbage. Keep it simple and do it right
(not half way).
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