Running a coffee shop is an exciting and rewarding adventure! That said, it is still a business, which means you must do everything you can to keep those profits going strong. Luckily, we’ve put together a brief overview of some of our favorite strategies for diversifying your offerings and increasing that bottom line. Read on to learn more about them!
Expand Your Offerings
When trying to increase revenue at your coffee shop, it’s wise to examine the fundamentals. Your current menu—for example—is an excellent place to start. Look through the current menu items you have and stack them against the products and services your competitors offer. Then, determine if your offerings fall short of what your shop could be providing.
To illustrate, perhaps you’re known for your delicious London fogs and mocha lattes, but your specialty espresso drinks don’t reach far beyond the basics. Meanwhile, Danishes are the only pastry you offer at the moment. However, if you were to expand your product line and offer options like lavender and white chocolate lattes, cinnamon scones and kolaches, or all the above, you might have a chance at increasing your sales.
Encourage Larger Purchases
The age-old upselling tactic is another excellent strategy for increasing revenue at your coffee shop. After all, there are few more straightforward ways to expand your business’s income than by encouraging larger purchases. There are a few different ways you can do this. First, you could offer discounts on food or drink when they purchase another item as well. You could also offer promotional deals where a customer receives an item for free with any purchase over a certain amount.
For demonstration’s sake, let’s say that a customer order 35 dollars’ worth of coffee, merchandise, and food. In this instance, you could give them the lowest priced item on their tab for free. Of course, the idea here is to encourage more significant purchases more often. But it also has the beneficial side-effect of instilling a sense of loyalty in customers, new and old.
Host Unique Events
Of course, if you’re looking to bolster business, you must make your coffee shop stand out. And hosting unique events is a fantastic way to do precisely that. For instance, you could get your liquor license and host wine and cheese nights where customers can come to sample some of your best products for an entrance fee.
You might also consider coordinating open-mic nights for local musical acts that need a bit of exposure. After all, what’s better than a bit of live music with your coffee and scones? The idea is to offer a unique event for your regular customers. Plus, these affairs can potentially draw new customers into your shop. If you ask us, that can only be a positive development for a coffee shop looking to increase its profit margins.
You can use these several simple strategies to increase revenue at your coffee shop. Hopefully, we provided valuable insight into some practical methods for you to try!
