Hot Beverage Expo

NoveMber 16

how To upGraDe your offer now To Drive map 2 sales anD profiT

welcome from louise

Hello and welcome to our Hot Beverage Expo!

I’m incredibly excited by this morning’s expo and hope you learn all about the opportunity hot beverages represent for our business.

I was amazed to learn that each year we sell a staggering 98 million cups of coffee. This makes us the fourth largest coffee retailer in the UK! Looking at the sales, the opportunity is vast. Imagine how strong our MAP2 sales could be if we all delivered the best offer possible, traded up in sizes and added a touch of indulgence with the occasional syrup.

This is also a great opportunity to make the most of the great work our Foodbuy colleagues do using the great buying power of Compass to get the best deals for you on your core and extended ranges.

I’m most proud of the fantastic work we’ve been doing with the Speciality Coffee Association of Europe (SCAE). Through our partnership with SCAE, our people now have access to some world class training and development which will better provide them with the skills and expertise to carve out long and fulfilling careers in our great industry.

I’d like to welcome you again and hope you have a great time.

Louise Pilkington Marketing Director

know your formaT Coffee Shop – Hot beverage is the main driver for visiting, food as a secondary purchase Convenience – Retail store with a self-serve coffee option Premium outlet – Artisanal/independent feel with premium products

Restaurant – Hot food is the primary purchase with Hot Beverage as a secondary purchase Check your format – Check your format at: www.compassconnect.com/communities/ community/consumer

key Be an Expert

Increase Footfall

02 | hot beverage expo 2016

Increase Sales

Deliver Great Customer Experience

Upgrade your Offer

Check your Format

The Joy of Tea

The UK is a nation of tea lovers with the market worth £557m per annum! Consumers expect a really good cup of English breakfast and with premium tea on the rise, they also want the experience of a first class tea offer.

Grow your sales with premium tea Black tea is in decline with consumers upgrading to premium teas instead. Green tea and infusions are leading the way as consumers seek more authentic ingredients and healthier options.

Premium tea equals premium profits

(If you increase your selling price!)

Consumers are prepared to pay a price premium for a more sophisticated tea experience that delivers added value. Stocking the best-selling teas and infusions will help you optimise sales and keep your customers on site.

Do it now: • Get the right offer for your unit - Check your format and check you’ve got the core range.

• Use beautiful tea pots or plunger disposables to create a great memorable experience.

• Don’t be afraid to charge a premium for speciality tea. Consumers are willing to pay for it.

• Got the basics right? Upgrade to premium tea – and up your RSP. • Get the experience – Make sure you’re delivering an experience with your tea. Speak to HR about our great training programmes today!

• Show off your tea. People buy with their eyes!

• Promote your tea, add value by offering Iced tea in the summer.

hot beverage expo 2016 | 03

Case Study One

Coffee Beans

Coffee machines using Fresh beans make the freshest coffee because they grind the beans as you use them. The average consumer now expects fresh bean to be available as part of the offer.

Having a full coffee range including a high quality fresh bean offer, can incrementally increase sales and GP dramatically, lets take a closer look.

Brewing results

What we did

In our Greenford site, a classic blue collar operation with a smattering of office workers thrown in. We only had an outdated soluble coffee vending machine and people frequently went offsite to a local Costa.

We introduced fresh bean using a black and white machine alongside the soluble offer.

This meant as well as having soluble at 20p for those looking for value, customers could also get a fresh bean cup at £1 for those willing to pay more. Note: £1 is still too low for a bean to cup offer. Look at Pricing on page 7.

results

55%

increase in total coffee sales

04 | hot beverage expo 2016

• Fewer people going offsite • Soluble sales stayed the same •T he sales from the fresh bean coffee were all incremental

Remember pe ople are leaving to pay £2.60 on the high st reet. Be ambitious £2.0 0 is still better value an d more convenient fo r your customer.

upGraDe your soluBle offer We are a nation of coffee lovers and even the smallest of units should include a coffee offer.

No space or budget for a barista or coffee shop? No problem, there’s a coffee offer to fit every unit, and soluble could be the solution for you.

The milano coffee machine is a GreaT TraDe up if you alreaDy have an aleGria machine on siTe The Milano solution will provide the best opportunity to increase sales whilst increasing footfall. Customers are attracted by choice and because the Milano has more variety available, the experience is more personal to the consumer.

Do iT now: • Get the right offer for your unit – Check your format, ensure you’ve got the core range.

• Make the most of the great signage and POS Nestle can provide.

• Upgrade to a better soluble coffee offer (Milano) for a better quality offer, and charge more.

• Having a self serve vended offer is a great way to capture consumers outside of normal cafe hours, particularly if you have staff working outside of normal office hours.

• Training – book your coffee ambassador visit with Nestle today.

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Unbranded Coffee Create your own coffee identity

Give your customers something different or satisfy a client who doesn’t want a branded solution. You can work with them to develop a great unbranded offer especially for them.

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Our partners UCC can offer a great range of quality beans to create a more bespoke and more tailored offer for your customer’s needs.

This means you have the freedom to build the right drinks range for your unit.

Insight tells us that people are willing to pay more for a fresh bean coffee enabling you to increase your tariff. Customers will enjoy a higher quality coffee, meaning increased repeat purchase.

Do it now: • Know your format.

• Review your tariff – Use the high street to benchmark your pricing against.

• Have a great seasonal range – giving something different throughout the year within your unit which will get people excited about coming back day after day.

• Add ons– don’t be afraid to charge for syrups.

• Upgrade your beans, We are a nation of coffee connoisseurs and will pay more for better quality.

• Keep your quality consistent - Speak to HR about our amazing Barista apprenticeship programme.

Understand pricing Go and look at your local high street pricing.

Their tariff boards are all consistent in their pricing by size and coffee type.

Coffee Size - Look at the pricing relation between Small, Regular and Large. Is it charged at 25% more or is it plus 50p for the next size up?

Then check your tariff, does your offer work on similar principles? If your offer isn’t priced like the high street, consumers will have the perception that it is of a lesser quality.

Coffee Type - Cappuccino and Latte always sell for the same price. All other drinks are based around those core prices. Check yours match those principles.

Don’t be afraid to increase your pricing – if your offer is in line with the high street or a % below, this means when the high street moves you can move.

DID YOU KNOW ?

Across our EP OS estate we are on aver age 15% below high stre et – move this to 10 % for a dramatic MAP 2 benefit across the com pany.

Did you know?

Consumers don’t like ordering ‘large’ drinks however if you change the names so that the 16oz is a ‘regular’ and the 12oz is a ‘small’, you will dramatically increase sales of larger coffee’s and in return you’re profit. hot beverage expo 2016 | 07

Customisation, Seasonal Beverages, Iced drinks Customisation is king!

We live in a world where iTunes and iPlayer let us choose what we want when we want it. It’s clear we’ve all got a taste for customisation!

Crucially, millennials have only known a world with customisation.

Customisation is a tool that allows us to differentiate our offer and can result in higher satisfaction levels meaning repeat business.

Do it now: • Customers expect a price premium and are happy to pay.

• Enhanced feelings of creativity and individual expression for customers – my coffee my way.

• Increase your sales with easy up-selling. Charge extra for syrups, cream & additional shots of espresso.

08 | hot beverage expo 2016

• Upgrade your offer. Ensure a variety of milks are available for your customers. This is standard across all High Street Brands, don’t give your customers a reason to leave your unit and visit a high street store. Soya and Coconut Milk are the most popular choices so stock these as a minimum.

specialiTy anD seasonal Drinks BlenD your way To success Speciality drinks are one of the most important growth categories – Seasonal drinks are anything that are sold for a specific time period and for a specific reason. Eg, Gingerbread Latte at Christmas, Iced Smoothie in the summer.

This is one of the biggest growth opportunities for Compass 9 out of 10 Adults said that they would buy something purely because of the season.

And the best part these purchases are usually incremental! (Allegra)

Speciality drinks also provide more opportunity for promotions which in turn can drive participation, spend and customers perceived value for money. Promotions can be around hot or cold beverages depending on the season.

Seasonal drinks are an essential part of any hot beverage menu. Whether you serve freshly brewed iced tea in summer or gingerbread latte at Christmas, your customers expect to see a seasonal drinks range, provide this and it will have a huge impact on your sales.

We all know when the new Costa/ Starbucks Christmas cups are out – Join the High street hype and give customers a great Seasonal experience.

The High Street do this very well at high margins. This is what our customers expect - it’s a no brainer.

Costa’s Christmas range in 2014 saw like for like sales increase by

34% Pret A Manger launched specialty coffee in 2012 with coffee consumption growing by

370%

Café Nero’s flavored coffee sales have increased by

11 % year on year since 2011 hot beverage expo 2016 | 09

Joe’s iceD Drinks

Joes is Chartwells white label coffee shop brand which replaced Costa Proud to Serve

case sTuDy Joe’s offers a broad range of drinks and in the summer 2016 we introduced a range of cold drinks including: Frappes, Coolers (blended fruit smoothie) & Iced Teas.

We featured the coolers as the hero product for two months and saw average sales increase by

14,000

47%

coolers in 2 months were sold across the estate.

Do iT now: • All units must offer the core range of seasonal or customisable drinks but the more you offer wider audience your will capture.

• Offer Seasonal Specials – Capture the excitement of Christmas with a Gingerbread Latte and a mince pie – (Keep an eye out for Compass seasonal specials).

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• You can charge 30% more for seasonal drinks.

• Buy a blender if you don’t already have one! No blender means missed sales!

• For all served offers, 3 syrups is a must have minimum.

• Speak to Monin today about their upsell and seasonal options.

Blended drinks and hot chocolate are a great way to attract a younger audience who haven’t yet developed a coffee habit.

Hot Chocolate & Chai Hot Chocolate is a favourite across the country, particularly with non-coffee lovers.

This is an important element to any hot beverage offer. Want to make it even better and increase your gp, why not upgrade to a premium hot chocolate offer.

Chai continues to be a growing trend and is a great addition if it’s not something you already offer. Chai is 99% caffeine free for those who have enough natural buzz.

Do it now: • Check which offer is right for you.

• Hot Chocolate can encourage a new audience who might not buy tea or coffee, it’s an absolute must have menu choice for the younger generation.

• Chai sales are growing year on year, and is the fastest growing non coffee offer in our most loved High Street Brands.

• Hotel Chocolat offer training and ongoing webinars to ensure you have the best chocolate offer you can.

NOW?

DID YOU K

mit sumers ad 38% of con g methin in to buying so al their norm addition to a ’s it purchase if roduct. seasonal p

GrowTh of The capsule markeT insiGhT for chanGe

Nespresso is a globally recognised brand and the market leader providing premium quality coffee in an innovative capsule system. This capsule based offer is now available for a coffee shop format.

The capsule based machine offers exceptional coffee and variety, providing a barista style solution without the need for a barista.

Delivering consistent quality in every cup, the machines are simple to use and reliable.

Extensive sustainability programme across the whole supply chain, from bean to cup including end of life as capsules are recyclable, gives good MAP1 and MAP2 messages.

Do iT now: • Check your Format.

• Does your client want innovation? This is a brand new coffee shop solution.

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• High Quality coffee offer allows for premium pricing. If you want a consistent quality offer but don’t have a skilled barista, then this offers for you.

BranDeD soluTion in The workplace Consumer expectation is growing: Consumers want their favourite brands at all times of day and in accessible locations.

Introducing a Branded solution brings a high street experience with their most popular core items, well established seasonal promotions and special offers for your customers.

Full marketing and POS support means that a great high street experience can be created easily within your unit.

Costa and Starbucks are the nation’s favourite high street coffee brands. You have the ability to offer these within your unit and stop people heading out to spend their money on the high street.

Do iT now: • Branded solutions can work in many locations.

• With full POS support, promotions and seasonal offers it’s easy to bring the high street into your unit.

• Brands will help and support with training while brand guidelines and audits help to ensure that the offer is consistent.

if you’ve alreaDy GoT one: • Branded offers allow you to benchmark your tariffs directly with the high street.

• Upgrade your offer to include the full range including great seasonal best sellers like frappuccino and Christmas specials.

• The advantage of using a brand is they do all the hard work! Take advantage & use the POS they provide, it’s free, so promote your exciting new range... why wouldn’t you?

60% of our current branded estate aren’t offering Seasonal drinks = Massive opportunity to drive sales.

hot beverage expo 2016 | 13

GREAT DRINKS DESERVE GREAT WATER

BRITA Professional filters specifically reduce the carbonate hardness in the water and eliminate any substances that can impair taste and odour. As a result, BRITA filtered water is of consistently high quality and boasts reliable properties, and no deposits so machines keep going for longer!

Do it now: • Check you have a filter and it doesn’t need replacing.

• Increase your quality and consistency of coffee meaning repeat purchase.

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• If you need to replace your filter please contact Foodbuy Support Line: 0844 247 6000

DisposaBle cups

Hugh Fernley Whitingstall has waged war on disposable cups and as the 4th largest coffee provider in the UK we need to take responsibility for our part in the 2.5 billion cups sent to landfill each year.

anD we have… in 2 ways: Compass has recently partnered with Simply Cups, the UK’s only paper cup collection and recycling scheme. For the first time, units signed up to our trial programme can have their paper cups separately collected, shredded and recycled and turned into raw material for use in the manufacturing process, the scheme now sells a range of functional products made from used cups such as pens, pencils and notebooks.

We also want to encourage our customers to simply use less disposable cups. So alongside encouraging the use of china cups, we are also working with MUG 4 Life, a great solution to reduce wastage.

Made to look like a disposable cup, these UK manufactured & BPA free mugs can keep your drink hotter and be branded for a client or site, while helping the planet!

Do iT now: • Contact Foodbuy Support Line for more information and to join the scheme.

• Check out the great products that all those cups can be made into at www.simplycups.co.uk

hot beverage expo 2016 | 15

our commiTmenT To GreaT people anD GreaT BeveraGes

We have committed to providing

by

1,500 apprenticeships

2017 and excitingly this includes barista apprenticeships.

16 | hot beverage expo 2016

To ensure our baristas get the best training possible, we’ve created the Barista Apprenticeship Pathway. It’s an innovative new programme to help apprentices develop into exceptional baristas.

The SCAE training programme delivers a European accredited Coffee Diploma System and provides development in:

A skilled barista delivers better quality and more consistent drinks and a great service As well as opening up new development opportunities, this also helps us capitalise on the growth of premium hot beverages.

This new initiative will increase the level of participating apprentices and importantly, enhance the standard of beverages we serve.

World class partnerships We’ve also partnered with two world class organisations; the Speciality Coffee Association of Europe (SCAE) and the London School of Tea.

The London School of Tea delivers world class tea education. Provided by a team of passionate tea lovers who are committed to inspiring and educating people with a passion and thirst for the nation’s most beloved drink.

The team can provide training which will allow our people to deliver first class service, giving customers a great tea experience, adding value and ensuring great quality every time.

For more information on opportunities on hot beverage training, visit www.jobsatcompass.co.uk or speak to HR.

Do it now: • Suitable for all served offers.

• Find out about all the great training opportunities to help develop your staff and your offer.

• Upgrade to premium hot drinks made brilliantly for a full customer experience.

hot beverage expo 2016 | 17

Why focus on Coffee Training?

Case Study

18 | hot beverage expo 2016

At the Bank of Ireland, in the face of fierce high street competition, we needed to differentiate the coffee offer to attract customers and keep people on site.

What we did We introduced the Barista Champion Passport and recruited a head barista to train the team and oversee the implementation of the training programme. This resulted in five appointed champions being entered into a training programme. Once fully trained these team

Results

members each got a pay rise and new uniforms to differentiate themselves and be more in line with the high street.

Our new trained baristas then passed on their knowledge by training their colleagues to take ownership of the coffees being served.

Annual Cost

â‚Ź32,300

in wages for Head Barista and wage increases for champions

Daily Coffee Sales

before

after

1172 1488

Extra â‚Ź79,000 GP per year!

Why was it such a success?

No Uniform. The introduction of baristas wearing their own clothing helped communicate that our baristas are on the same level as those on the high street and independent coffee shops. This helped increase the perceived experience, quality and value.

Engagement. Our baristas are passionate about their craft and know all about great

coffee which helps them interact with customers and engage at an expert level.

Quality. People will return for a great cup of coffee. One of the biggest reasons people return to a coffee shop is consistent quality and a well-trained barista will keep your customers coming back day after day.

hot beverage expo 2016 | 19

kinDly supporTeD By:

Daniel Balnave

Michelle Gomes

Zoe Somolu

Susie Hodgkin

Daniel.Balnave@ UK.nestle.com

Michelle.Gomes@ whitbread.com

zsomolu@ starbucks.com

Susie.Hodgkin@ twinings.com

07795 223410

07917 132805

07714 615013

07803 011647

Anna Rhodes

Laura Dance

Jackie Clark

Anna.Rhodes@nespresso.com

Jackie.Clark@b-opie.com

07990 540227

laura.dance@ hotelchocolat.com

Craig Muir

Samantha Scoles

Louise Munyard

Craig.Muir@ucc-coffee.co.uk

sscoles@brita.co.uk

info@mugforlife.com

07774 005796

07701 399988

01202 888192

Mark Green

Simply Cups

Mark.green@compass-group.co.uk

info@simplycups.co.uk

Apprenticeships@ compass-group.co.uk

07774 331017

08081 688787

0845 602 5555 opt 2 opt 5

Susan Hollins

Lucy Chappell

Steve Wilson

susan@scae.com 07787947271

info@thelondon schooloftea.com

steve.wilson@techniques group.co.uk

07468515758

01932 569873

Zak Manhire

Foodbuy Supportline

zak@drinkmechai.co.uk

foodbuy.supportline @foodbuy.eu

07837 391421

07711 003761

0844 247 6000

07771 904279