How to Start & Run a Coffee Bar Volume 2

magazine’s

How to Start & Run a

Coffee Bar VOLUME 2

MAY 2017

www.thecafelife.co.uk

Welcome!

Welcome to the second edition of the How to Start and Run a Coffee Bar supplement from Café Life magazine, launched in time for the Caffé Culture show – an event during which many would-be coffee shop owners are looking for ideas, inspiration and information about launching into the business.

There certainly is no slow down of people looking to get into the market – we’ve seen that from recent research – so we hope this publication will prove useful in your search.

We’ve asked our experts to give us their ‘inside’ tips on what you need to do or buy and where to get it from and all our articles are direct and to the point.

We wish you all the best in your endeavours.

Simon Ambrose simon@jandmgroup.co.uk

Contents 04-06: 06-09: 10-13: 14-17: 18-20: 22-24: 25-28: 32-34: 35-39: 40-42: 44-47: 48-50:

Location Marketing & Finance Furniture Coffee Machines Fracino Coffee Soft Drinks Dishwashers Social Media Hi Coffee Profile Staff Training EPOS

Editorial Address: Café Life, Association House, 18c Moor Street, Chepstow, Monmouthshire, NP16 5DB, UK. Tel: 01291 636338 Advertising/sales contact: Sam Minton Tel: 01291 636342 E-mail: membership@thecafelife.co.uk www.thecafelife.co.uk

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Opinions expressed in Café Life and its How to Start & Run a Coffee Bar are those of the contributors and not necessarily those of J&M Group Ltd or Café Life. No responsibility is accepted for the opinions of contributors. Café Life is published by J&M Group Ltd. and supports the Café Society.

It is circulated to managers, executives, buyers, retailers and traders in the café industry. © 2017 J&M Group Ltd

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How to Start & Run a Coffee Bar

3

property

Locating the right location How do you go about finding the right location for your café business? Simon Ambrose has the answers far between, particularly for first time operators without a trading history, and in truth, there’s lots of wiggle room on this. Many successful cafés have opened in secondary sites, away from the high street - Philpotts, the well-known sandwich and café bar chain, was a master at this, choosing locations in affluent areas where roads and footways intersected, bringing high levels of footfall.

The key to it all is the catchment area around the spot you’re looking at. This is where the chains have a massive head start with access to expensive demographic research. You also need to do your homework at this stage One of the most difficult things for a potential and a trip to the local reference library where café owner to get right is choosing the location. you can get a lot of information for free, or a lot Get it spot on and you’ll be busy at all the of well-placed Googling, can be invaluable. crucial times, but if you slip up you’ll have You’ll need to assess the income levels of wasted a lot of money and time. your potential audience for one thing in the It has to be said that it can be a difficult and area – local housing values will give you a head long process as well: certainly landlords are start if outside a city centre, for instance. favouring interesting independents in some Then check out the local business offices. areas, as something of a backlash against the Unless you’re looking at a tourist destination, chains, but without an established covenant information about numbers and types of local you’re likely to be up against established offices are essential, not only for the café operators chasing a site. lunch time trade, but also for the increasingly Warnings over, let’s get down to business. important breakfast sector. More and more Perhaps the most important preliminary is office workers want coffee and porridge deciding what kind of café business you want and other healthy options, and also the to run. That way you can measure yourself more traditional bacon rolls first thing in the against the existing competition in the area you morning. want to be. Will you be A1 or A3 for example?

You need to get an idea of where the offices Will you need any planning permission? Do are and who works in them – find out if any you need external seating? What do you need have their own internal canteens. Are there new inside? offices scheduled for development? Many a In theory you should aim for a central, café has been boosted by new offices opening primary location, preferably a high street where in an area. But also make sure, if possible, there’s plenty of footfall for obvious reasons, that they’re not closing in your projected area. but in practice good sites like this are few and Bear in mind also that office-heavy areas

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How to Start & Run a Coffee Bar

property or quality coffee? Is there room for another business? Would you compete on price or quality? These are all important questions that need answering.

It may seem obvious but you should carefully check the size and square footage you require to help you when evaluating property advertisements. Make sure you have a clear idea about the size your seating area needs to be, the size of your kitchen and serving area. tend to be dead at the weekends. Make sure Creating an effective floor plan is essential there are no major roadworks scheduled when considering premises and location. for the area which could see passing traffic You should ensure customers have space to re-routed, and especially make sure there are form a queue, employees have the necessary no supermarkets earmarked for the area. I’ve materials within appropriate reach and you heard some heart-breaking stories of cafes have a comfortable seating area. Ideally you losing a huge amount of turnover because of should walk yourself through every different Waitrose opening in the area, for instance. scenario you can think of. If you are making the Their free coffee and newspaper deal for cardholders is very difficult to compete with, even if drinks, what equipment do you need to be near you? Try and visualise every practical aspect of you’re well-established. your cafe and make a note of these.

Yes, it’s difficult to find this sort of Don’t forget you will most likely have to information out, but it could be make or break. recruit staff at some stage. Will they be able Armed with this background info. you need to travel to you easily where you are? Think to measure the footfall on your intended spot; there’s no substitute for getting a click counter of Docklands, for example, and the long and expensive journey many staff have to travel to and checking out the numbers of people throughout the times you intend to open. What get to work, which you may have to subsidise.

Finally, if you’re going to do it, don’t leave sort of numbers will you need to give you the it too long! Mark Lilley, founder of Abokado, a turnover you require?

London food to go and coffee chain, issued this Get an idea about the type of potential warning on the property front recently: “The audience from the look of the people going property market has been changing fast but past as well – it’s pretty easy to work out if I think there are even more changes to come people are likely to have disposable income and will use your services. Get a breakdown on soon. Currently if you’re an independent you’re the percentage of male/females – you will need in a good place; there are some landlords to develop your menu choices accordingly if the that will only let out sites to the ‘latest’ thing.

But a lot of those businesses are effectively percentages are uneven. ‘start-ups’ and landlords are already seeing Are the potential customers likely to be around just around at certain times of the day, business failures in the independent market. or likely to pop in for repeat business? The The problem is if you have a vacancy and it more of these questions you can answer in starts affecting your yield you’re going to be in advance, the better. trouble with your investor base.

Checking out the local competition is also “Going forward I think landlords are going to crucial, of course and will give you valuable become much more focused on covenants and information for your business. How much they’ll be looking for companies that will still is there and who – chains or independents? be here in two to three year’s time.”

Are they niche operators specialising in food You have been warned.

How to Start & Run a Coffee Bar

5

marketing

Putting your place on the map You’ve opened your first premises, now you need to market it.

Simon Ambrose looks at some of the ways to promote your new business very important to be as friendly as possible here; even if you are dismissed rudely by passers by who have no interest in your wares, always keep smiling, be friendly and say ‘thank you’.

Free Wi-Fi Providing an internet facility such as WiFi is a must for customers these days - customers expect it. A high-speed connection means that companies, individuals and friends could relocate to your coffee shops for that very important meeting, appointments and other business activities.

Also look at offering wireless charging facilities, another free perk for customers, which can give you an edge on the competition.

Free samples Nothing promotes a new business so well as handing out free samples. It gives people an idea of your quality, measures you against the competition and helps to put the location on the map.

If you have cake which isn’t shifting fast enough, for example, then cut it into smaller pieces and leave it on the counter for customers to try. Alternatively take a tray of mini coffees and cake out on the street outside your shop and hand it to customers to try. It’s

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Loyalty schemes Loyalty schemes enable customers to earn points through transactions, which in turn translate into a reward.

This can take numerous forms depending on the nature of your business, but from a café or coffee shop perspective it usually equates to a free or heavily discounted beverage.

Avoid overly confusing schemes, particularly when you try to introduce multiple steps or the customer is forced to perform some of mathematical equation to work out precisely what they are entitled to.

The shop front The biggest canvas at your disposal when communicating to customers is most likely your shop front. Aside from your business name, the overall look of your café front communicates a huge amount to anyone passing by.

Look at your front with fresh eyes and think what it says about your business. Many business owners struggle to do this as they already think they know what their business is. If you look blankly at your shop maybe stop a few people passing by (who aren’t regulars) and ask them what they think the shop front says about the business. If you’re an upmarket gourmet coffee shop you will most likely have a matt grey, black or green shop with traditional style signage. If you are a value operation you might have a brightly coloured sign and a price message in your window. If How to Start & Run a Coffee Bar

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marketing you are having difficulty visualising what your shop front should be like have a look at the competition. Find a few companies that are like yours and are successful and see what they have in common.

But be wary of trying to put too many written messages on your shop front as this can look messy, confusing and amateurish.

Remember though, the best method of promoting the business to customers and build up loyalty is talking to them face to face.

If you or your staff talk with customers it will almost always be time well spent.

Media People often overlook the power of local newspapers and indeed the national ones.

Staff have been cut to the bone in recent years, so if you make the effort they’re more than likely to use your story, provided it’s local. It’s not difficult to come up with ideas that might make a story – a themed opening party, for example, or a fund-raising event for charity.

It’s worth investing in having great photos of your key menu items. This helps with the power of your website and social media and also virtually guarantees you some decent coverage in your target publications.

Editors love delicious pictures of sandwiches you can bite into, so a one-day shoot can get you thousands of pounds of free publicity.

Leaflet drops Preferably with an offer or discount code and delivered by you, rather than some uninterested casual labour. Go around local businesses and use the leaflet as an icebreaker to speak to people. Where do they go at lunchtime currently? What’s putting them off coming to you. Take their feedback and use it to adapt.

Invite a few people to your restaurant, send them a copy of your advert or leaflet and then ask them how easy it was to find you. Get some feedback on how easy it was to find the area you are in, the particular street and your

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premises. Check if your directions are clear and if your signage was easy to follow. Then ask them about the advert or leaflet you sent them. Does it describe your business and offer correctly? Is it clear what type of food or theme you specialise in?

There are hundreds of questions to ask at this stage and you only get one chance to get it right.

The specials board Placed visibly outside your shop and changed frequently. Add cheeky messages if you’re in the mood.

Go to local networking meetings A few are free, but even those that aren’t usually allow you to turn up to a meeting or two to test the water. People at these sort of things are usually very receptive to a bit of market research and self-promotion.

Use social media Twitter is incredibly important and simple to do, but one of the best ways of promoting yourself and building a loyal following.

Follow all the businesses local to you.

Post (attractive) photos of your food online and retweet any positive reviews you’re lucky enough to receive. And if you’re not tech-savvy enough to do it yourself, find someone who can, or, even better, can learn!

If you’re not sure what to do to start with, follow some other lunch businesses and see what they do.

How to Start & Run a Coffee Bar

finance

Financing your coffee bar In many ways, one of the most difficult elements to get right with starting a new coffee bar is the finance. Simon Ambrose offers this advice Once you’ve decided to open a café bar and you’re confident the business is sustainable, you need to put a business plan together - a good way of thinking through all the various aspects of the business at the same time.

You need to be clear of your objectives, your customers, operating aspects and financial projections.

Take a moment to consider the banks’ positions as well. Opening a café/sandwich bar has become an increasingly popular choice, but with all the risk of operating in an increasingly competitive sector – consequently they are bombarded with requests for funding and increasingly wary.

Take note of a quote from a lender I came across recently on social media, which might be instructive: “As a funder, we are bombarded with enquiries from people looking to start coffee shop / cafe type businesses; most of them on the pretext that it’s an ‘easy’ or a ‘lifesyle business’. Sadly, about 80% of them fail (our underwriting stance is now it’s going to fail, so what’s the fallback position?

The main causes of early failure are: - Long delays in obtaining relevant planning / licences (never underestimate the capacity of Local Government to be awkward and inept!)

- Over spend on fit-out costs.

- Use of the wrong types of finance - Over-optimistic projections.

In a nutshell, they mostly open the doors with bad cashflow and never quite catch up.’.

So, that in mind, check out the different banks and see what they have on offer for business banking – some may have special offers for start-ups such as fee-free banking for a limited period.

Then make an appointment with the bank How to Start & Run a Coffee Bar

with the right documentation – this could include your business plan, together with ID documentation, the legal status of your business and the evidence of the source of funds of funds.

The business plan could include a detailed breakdown of your menu, your proposed charges, projected labour costs and the rent you’re going to be paying. Provide as much detail as you can, to enable the bank to understand your position.

Some banks have online tools to help prospective businesses put together a business plan, answering all the questions they need to ask.

Banks look for a number of things when it comes to business plans. For instance, HSBC’s James Cliffe, UK head of business banking, says: Does the customer understand the business and the market? Do they have the experience and expertise needed to run the business?

Has the customer performed adequate market research and been able to demonstrate that he or she understands the competition, and has a new or unique product or service that will be in demand?

Good luck with your business.

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furniture

What’s on trend in café furniture?

We’ve seen the revival of retro style furniture in cafés and the emergence of metallics combined with minimalist designs and natural materials, so what’s next in café furniture trends?

Trent Furniture’s Sarah Gechie has the answers

In 2016, specialist coffee shops were the fastest growing major restaurant category.

When it comes to design of a coffee bar, the furniture you choose can make or break the success of your business and with operators having to stand out in what is such a competitive and thriving marketplace, it is essential that you create an environment that reflects the personality and values of you and your establishment.

VINTAGE So what’s on trend for 2017? As expected, the Vintage and Retro style of furniture which burst onto the scene has continued to rise in popularity ever since is here to stay. Vintage style furniture has a raw edgy feel to it and works perfectly with either contemporary or more traditional interior styling. Think rustic wooden table tops with metal bases and seating in a vintage leather finish or mix and match different styles of chairs for a really eclectic look and feel that is totally unique to your coffee bar. It’s not always practical to source individual items so look for a supplier that can offer a range of different style of chairs in various finishes and combine woods with metals and vintage fabrics or rustic leathers.

NORDIC STYLE Nordic style interiors and ultra-simplistic furniture designs are still big for 2017, with

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How to Start & Run a Coffee Bar

furniture either raw oak or painted wood finishes being utilised to create that shabby chic, rustic interior.

That being said, there seems to be somewhat of a shift towards introducing darker wood tones alongside the white and greys that have been dominating the interior design scene in recent years. This year we are set to see much warmer woods and bolder colours throughout commercial interiors and demand is rising for rich dark oak finishes and more natural wood tones to sit side by side with the Scandinavian style that features predominantly white and grey. Expect to see a lot more of natural wood tones creating a stripped back style that complements the elegance and character of vintage designs excellently and ties in nicely with other major furniture trends of 2017.

A combination of shades of woods is a popular way to add depth and character to any space and make your bar stand out from the crowd. Wooden tables with a deep hue look set to be a leading player in the interior design stakes for 2017.

METALICS Metallics were massive for 2016 and they look set to remain high on the top interior trends list for this year. Since the recent rise of industrial conversions into bars, cafes and hotels, the use of metals is a trend that hospitality business owners have been keen to incorporate.

How to Start & Run a Coffee Bar

Warm metals such as copper and brass have taken the industry by storm and are being widely used in lighting, chairs and tables but the shades to watch out for this year are the cooler tones of metal such as chrome and nickel.

But beware- when a trend has such prominence in the market it can be easy to go overboard so aim to strike the right balance by opting for subtle accents of metallic on within your furniture, combine metal table bases with wooden tops or integrate some brass accessories or studding as an addition to seating.

JEWEL TONES AND PATTERNED MATERIALS What about colour schemes? Although neutral tones like whites and greys are still featuring highly, especially with Nordic styling still being so influential, we predict 2017 will bring much braver use of colour on furniture with vibrant fabrics, particularly jewel tones and bold statement patterns such as monochrome dogtooth and tartan.

Luxurious materials like velvets, tweeds and chenilles in ruby reds and jasmine green will feature highly in sandwich and coffee bar and other commercial interiors and with their ability to add instant style it’s an easy way to reinvent an otherwise ordinary style of chair or bench. The use of reds, greens and luxurious purples as well as patterned fabrics such as tartan are a great way to introduce colours, add interest to a room or create a cosy feel.

When it comes to hospitality industry interiors, the use of large communal tables is a trend which is losing momentum. It’s best to avoid integrating sharing tables in your layout and instead combine lots of smaller ones which can after all be rearranged to create a bigger tables if the need arises! This makes your floor space and seating options much more versatile and smaller tables provide an intimate and more private experience that d coffee shop goers are currently loving. Small round tables with a single pedestal leg and big plush tub chairs or snug areas featuring

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furniture comfortable sofas and low individual tables, where customers can nestle into a corner in a relaxed and informal environment, are always popular. This cosy, casual atmosphere is something that customers are increasingly seeking from a venue.

Furniture shapes are going to change this year with us seeing much more rounded and softer edges. Intriguing forms like curved sofas or turned legs on wooden chairs and stools add interest to a piece of furniture and contrast perfectly with edgier geometric accessories industrial lighting and vintage décor that are dominating the interior design scene right now.

When buying furniture for your coffee bar it’s important to get the aesthetics and styling right but what is equally as important is buying furniture that has been designed specifically for contract use. Your furniture should be an investment and domestic furniture just won’t cut it in a busy commercial environment.

Trent Furniture offers a huge range of furniture that is certified suitable for contract use with specific ranges designed specifically for coffee bars and cafes.

The ‘Pyramid’ range of table bases are chic and stylish and available in either smooth polished chrome or a classic sleek black to perfectly complement any wood colour you choose for the table top. The space saving design with single pedestal is appreciated by operators who want to maximise space and offer comfortable and practical tables. With the table available in three heights, Trent

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recommend combining some standard level seating with bar stools as well as low level tub chairs and sofas to cater for a variety of customers. Having the same table design in different heights creates a versatile venue but maintains consistency of furniture style to avoid it looking like a lack of thought or attention has gone into the planning of the interior.

Trent has extended its range of fully upholstered chairs to include a stunning fabric options on the Abbruzzo and Rimini designer chairs. The aptly named Autumn upholstery is a bold red pattern reminiscent of tartan, striking a vision of cosy interiors all paired up with chunky wooden tables and rustic décor.

The Cappuccino finish is a classic combination of creams and neutrals in a simple and sophisticated chequered pattern and brings a touch of elegance to any interior.

How to Start & Run a Coffee Bar

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coffee machines

Are you ready for the grind?

A guide to coffee machines Daniel Clarke, UK sales director for Cimbali, the world’s largest coffee machine manufacturer, looks at the best options for start-up businesses when it comes to coffee making thing to attract potential customers to you.

Consumers care about the quality of the coffee and the service they receive, which are two areas that you as a small business can control much better and with more care than a comparable branded high street coffee shop chain.

Many people dream of setting up their own coffee shop and making that decision to go it alone can be a very exciting, albeit a daunting and demanding time.

Amongst all the paperwork, planning and organisation that’s needed to get things off the ground, I would advise any new business owner to spare some thought for the one area that has the potential to turn a great profit if managed correctly, that is the speciality coffee menu.

There is no doubt that we have become a nation of coffee addicts. Over 2bn cups of coffee are sold in the UK every year and the market shows no sign of slowing down. Good coffee and decent coffee shops have become an integral part of our lifestyle in the UK so there’s plenty of opportunity, especially if you give consumers a reason to choose your establishment over others on the high street.

Remember that being a smaller, independent business might be the very

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Which coffee machine is right for me?

Keeping customers happy with great tasting coffee and minimal queuing times is easily achievable as long as you invest in the coffee making equipment that is right for your business.

By the time you come to start looking at coffee making equipment seriously, you will probably have already thought about the profile of the customers you are trying to attract and what sort of coffee volumes you are aiming for.

Perhaps you are a city centre outlet aiming for the morning and lunchtime trade from busy urban professionals, a high end specialty coffee shop that has created a niche for more interesting and unique coffees or a destination coffee shop targeting seniors or mum and toddler groups and after school get togethers?

How to Start & Run a Coffee Bar

coffee machines Understanding your market position As important is how you intend to position the business – an artisan coffee specialist with a hot shot barista team and an emphasis on carefully selected single estate blends and creative recipes or a non-specialist, where the coffee is great but the emphasis is clearly on the food offer which is likely to be made on the premises and priced at the premium end of the scale.

These areas are all important in terms of determining what type of coffee machine to invest in.

The traditional route A traditional espresso machine uses fresh beans and milk and there is no doubt that they make the best possible coffee going, taking centre stage behind the bar and adding a wonderful touch of drama which enhances the customers experience. But to deliver great coffee, traditional machines are very much reliant on the skills of the barista. And, given the high turnover of staff that the industry is known for, an ongoing investment in staff training is usually needed as a backup.

Having said that, some machine manufacturers are making it easier for nonexperienced baristas by integrating smart technologies into traditional machines that take the guess work out of creating excellent coffee. Some of the key stages of the brewing process such as the milk preparation, temperature control, coffee volumes and drink sizes are all taken care of automatically which leaves very little margin for error.

Pressure profiling adds greater scope If you are pitching your business as a coffee specialist then traditional really is the only way to go. If your barista team are particularly creative then you might be interested in a machine with an integrated pressure profiling system which enhances specific favours and characteristics of the coffee by adjusting the pressure through the brewing cycle. The advantage of this is that the barista can really

How to Start & Run a Coffee Bar

go to town on signature drinks and create some fantastic recipes and seasonal specials that will not be available elsewhere which will help you create a valuable point of difference.

When only bean to cup will do However a traditional machine is not for everyone. We have all been to our local garden centre at the weekend to find baristas on incorrectly specified traditional machines.

Staff become agitated struggling to cope with demand whilst queues build up at the till. How much easier it would be if that operator had bought an automatic or semi-automatic bean to cup machine instead.

Bean to cup machines also use fresh beans and milk and they are pre-set on installation to deliver barista standard beverages to predetermined parameters at high speed. Push button controlled they are quick and easy to use and leave the operator free to concentrate on other tasks such as food preparation. The better quality machines are so good that only a real enthusiast would be able to tell the difference between coffee prepared on a superautomatic and that which has been brewed on a traditional machine.

Call in the experts Deciding on which machine is right for your business is a big decision and is not one that should be taken lightly because choosing the wrong equipment could have a major impact on your profitability.

I would therefore recommend that anyone

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coffee machines who is looking to invest in new coffee equipment calls in a reputable specialist company first to review the options before any buying decision is made. Calling in the experts will ensure that the correct machine is specified and you might also be able to make use of

service and maintenance packages and training programmes which can be tailored to meet your requirements.

Coffee has the potential to generate significant revenue for your business so choose wisely and you will not look back!

Professional coffee machines: the options Filter coffee Filter coffee machines can generally brew 2, 4 or 6 litres of coffee and are very easy to use and extremely consistent, giving a quality repeatable quick serve product. Water simply drips through a basket of ground coffee to infuse in a pot or thermos which will keep the coffee warm for 1-2 hours.

These machines are a great addition to your espresso based menu helping improve speed and menu quality and changing your filter menu on a seasonal basis is a good way to bring in variety. They can also work well catering for small numbers, for example, in meetings, the workplace or during private functions when a pot of coffee it can be freshly brewed for a specific number of people and timeframe. Reusable filter coffee holders can be used like the Coffee to Go which can hold Bean-to-cup machines around 2-3 litres of hot coffee and is useful for A quality bean to cup machine provides a a variety of out of home coffee moments. premium experience, creating a range of With added developments in filter technology espresso-based drinks at the touch of a button. Recipes can be customised for different from companies like Wilbur Curtis and Marco, depths of flavour, drink temperatures and cup pour steady single cup automated brewers are now available creating delicious and consistent sizes. These all-in-one machines are ideal for single cup pour over with ease. those who want more speed and convenience than offered by an espresso machine and they Capsule/pouch/pod really do make excellent beverages.

Capsule and pouch machines are often used in a self serve mode, for example in a location where it would not be viable to operate a barista team or when demand may be intermittent or ‘out of hours’. The pod or pouch contains a single serving of ground coffee which is vacuum sealed for freshness. As well as a full range of speciality coffees, these machines also offer chocolates, teas, and infusions for complete flexibility.

Traditional espresso machine Traditional espresso machines look fantastic and make an eye-catching focal point in any coffee shop, and of course, they make excellent coffee. Manufacturers usually offer a range of machines, from smaller entry point designs to larger options with three or four groupheads from which it is possible to make multiple espresso base drinks at once, although if you are busy enough 2 x 2 grouphead machines might make more sense in the long run. Look out too for valuable integral features such as milk preparation systems; pre-set temperature controls for each recipe and automatic grinder blade adjustment which all help the barista deliver that perfect coffee every time.

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How to Start & Run a Coffee Bar

coffee equipment

How to choose your coffee shop equipment The prospect of running a coffee shop is an exciting and challenging venture - and a critical question for those embarking on such a venture is ‘What equipment do I need?,’ says Peter Amore, head of sales and marketing at Fracino

Your menu is a critical factor in planning. It establishes what kit you need, which, in turn, determines how much space you require for equipment such as blenders, grills, multiple sinks, a preparation table, a refrigerator, freezer - and an ice machine.

If you are serving food, your menu also determines if you need documentation such as a permit and Food Standards Agency approval to prepare it on site.

Because your customers drive your choice of menu, researching and understanding your target market is instrumental in deciding what equipment you need – along with the type of coffee business. For example, running a mobile coffee kiosk or cart requires access to water and power supplies.

Set a budget upfront and be aware that finance companies are often wary of funding used equipment.

VITAL EQUIPMENT FOR STARTUPS: Espresso Machine Your espresso machine will be the heart of your coffee shop so ensure you have a quality machine to meet high demands throughout the day.

For high volume venues, consider a “2 group” or “3 group” espresso machine – both of which require some plumbing and an appropriately rated power supply. This is particularly important for mobile coffee kiosks,

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How to Start & Run a Coffee Bar

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coffee equipment coffee trailers or vans. Consult a reputable supplier for the best model and specification to suit your requirements.

Water Boiler Most espresso machines also provide water at or close to boiling point for making tea and other non-coffee hot drinks. For high volume coffee shops, consider investing in a ‘standalone’ water boiler which prevents service being held up at peak times while waiting for the espresso machine to keep up with the vast quantities of hot water. It also ensures hot water is constantly available.

Coffee Grinders Ideally you’ll have at least two grinders for espresso and decaf. Invest in the best professional grinders you can afford - they are key to the consistency and superior quality of your coffee and the outlay will pay dividends in results and longevity of service.

Panini Grill You will need a heavy duty grill to serve hot sandwiches or paninis.

Blender Most coffee shops also offer a range of cold drinks, such as frappes and smoothies, which demand a heavy-duty blender. For speed of service, select models that offer additional blender jugs. If available, sound-reducing covers are a good option for customers’ comfort.

at an appropriate temperature level. Even a mobile unit requires a supply of hot water.

Commercial Refrigerator A good commercial refrigerator - which keeps the temperature constant while being opened and closed continuously throughout the day is also essential.

Work and Food Prep Table If preparing your own food, including sandwiches, salads and hot food, you will need a prep table that is separate from your other items.

Small Wares & Miscellaneous items If you make coffee, milk frothing jugs, tampers, and other items are essential - along with crockery and other serving-ware for drinks.

Your coffee shop equipment is a vital ingredient in the success of your business.

Compromising on the quality of your equipment will see you struggle to deliver a quality service your customers expect and will ultimately impact on your reputation and profitability.

While you may not need a shiny new refrigerator or a brand new prep table and sink unit, you will need the best grinders you can afford. These, together with a new espresso machine, from a quality manufacturer, will be a sound investment to bring your dream of owning a vibrant and successful coffee shop to fruition.

Sink A multi compartment sink is vital as you will constantly be washing milk jugs and other preparation utensils. You also need a separate hand washing sink for you and your employees.

Commercial Water Heater Purchase a commercial grade water heater or tank that fills up quickly and provides sufficient hot water to last throughout the day

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How to Start & Run a Coffee Bar

YOUR COMPLETE BEVERAGE MENU - SORTED!

Syrups

Iced Tea

Winter warmers

Sauces

Frappe

Smoothies

Milkshakes

Chai

Biscotti

Hot Chocolate

Coffee

Granita

Lemonade

Wafers

Toppings

@italianbev

/ItalianBeverageCompany

C ALL 0 2 0 8 73 6 0455 OR VI S I T

IT A L IA N B E V .C O .U K

coffee

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Choice and Quality - the future of coffee and how to sell it Coffee is changing, or rather, coffee CUSTOMERS are changing, says Jon Steward, u-select.co.uk sales The coffee drinking culture has become a worldwide phenomenon and the UK is no different. Every street has a coffee shop.

Many streets have them every few yards.

Competition is fierce.

Customers know they have a huge choice and will go searching for the taste and experience they want. They are more knowledgeable and have higher expectations than ever before.

Millions now drink from coffee pod machines at home and at work. They can pick the strength, taste and aroma of the coffee they consume. Anything less than ‘great’ when they are out on the high street isn’t worth considering.

Not that this indicates a saturated market.

Studies predict that by 2025 there will be more than 30,000 coffee shops in the UK, turning over £15Billion. That’s up from 20,000 outlets and an £8Billion turnover in 2015. There’s still lots of room for growth.

This rapid and sustained growth means there is a new level of competition in the market. It also represents opportunities for the right businesses. They are there for anyone who can provide the coffee customers want.

It’s up to every company that sells coffee to up their game. They need to provide the choice customers expect and surprise them with new options.

Providing the right choice requires knowing your customers and the market. It’s not about being ahead of the curve. It’s about giving your customers the tastes and the experiences they want.

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How are businesses tackling this challenge?

The third wave and more ‘choice’ There have been several reactions to this explosion in the market.

The ‘third wave’ of coffee in the UK has seen choice become a massive part of many offers by new and upcoming businesses. Its main aim is to help customers understand what makes great coffee and how to get the coffee they want. The third wave hopes to inspire customers to think about coffee in the same way that they think about wine. As something to be savoured, valued and appreciated.

Artisanal barista shops use new methods.

They try out cold-brew coffee, or highlight local suppliers. They work hard to stand out and show off their knowledge of coffee and how best to appreciate it.

Focussing on quality in this way helps customers engage with your brand. It encourages them to value it more. People begin to have brand loyalty towards certain shops or small brands, because of the way they talk about coffee.

The third wave has been around for a while, and its effects are now felt in the offers from the more mainstream brands.

Brands keeping up Led by these third wave experiments, the market leaders are also innovating. They offer syrups, toppings How to Start & Run a Coffee Bar

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coffee and options that represent their diverse demographics. From vegan hot chocolate to Matcha tea, they try to fill every niche.

Brands like Starbucks, Costa and Nero have entire teams working to develop new drinks and offers. They roll these out across hundreds of shops in a matter of weeks.

The key for these big brands is not beating their opposition to ‘new’ products or offers, but to produce drinks their customers love.

However, they know they are operating in a fast moving market. Customers actively compare offers and switch allegiances quickly. Brands have changed the way they work to stay relevant.

Back to the bean So how does a smaller, independent business keep up with this tough competition?

It might seem daunting, but there is a way to ensure you always focus on what matters: taste and choice. To do this, it’s often best to go back to basics. What makes the most difference to the taste of a cup of coffee? The most important ingredient in any coffee is the coffee bean itself.

Learn to control the type, roast and flavourings of your coffee. If you do that, you can produce unique drinks that attract customers.

Connect with local roasters The first step to creating tastes that are unique to your business is to connect with a roasting house.

The UK has been the site of a remarkable revolution in roasting over the last ten years.

Where once there were tens of roasting houses in the country, now there are hundreds. In most areas of the UK are people who love roasting and exploring the science of great tasting coffee.

If you want to stand out from the crowd, go find a local roasting house and look to work with them. Most independent roasters are able to produce small batches of beans to your specifications. This can also create

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opportunities for both businesses to promote themselves. Think about creating joint marketing materials. A great partnership can benefit both of you.

Roast your own There is also a growing trend to roast beans on site. This might sound like a big challenge, but modern technology makes it easy. There are lots of options for roasting your own beans.

From 50g a roast to 15kg and beyond (if you have the space). From gas to electric to ceramic heat, you can make the choice that is right for your business. At U-Select we sell the Ceroffee roaster. We chose it because its dependable ceramic heat gives a guaranteed roast every time. Choose the roaster that is best for the conditions within your business.

What roasting on site can do is show the range of tastes and aromas you can give your customers. A light roast for the same bean can taste totally different from a dark one. By taking control yourself you can begin a journey to find the right taste for your customers.

If you love coffee, or just want to serve coffee you love, roasting on site could be the answer.

Conclusion However you do it, if you sell coffee you have to give your customers choice. Choice in the tastes, styles and provenance of the coffee you sell.

By creating surprising offers that are tasty to drink and interesting to talk about, you will find customers willing to search you out and buy your coffee, time and time again.

How to Start & Run a Coffee Bar

soft drinks

Time to get fruity!

One area of the business that can generate significant profit is the beverage menu, in particular, soft drinks. Ricky Flax, general manager, the Italian Beverage Company, explains how

According to recent research, food and drink appears to be the hottest start up sector in the UK right now with almost a fifth of those canvassed looking to launch a food related business over the next twelve months.

A cafĂŠ, sandwich bar, cake shop, and bakery are firm favourites amongst budding foodie entrepreneurs so if you are thinking about opening up or have recently started trading then you certainly seem to be in good company.

Of course, there’s lots to think about,

How to Start & Run a Coffee Bar

plan for and organise. Visiting some of the specialist trade exhibitions is a great way to pick up ideas, meet potential suppliers and to make valuable new contacts all of which can help shape your business moving forward.

Running a coffee shop is a long-held dream for many people, but at the end of the day it is just a vehicle for making money. Each area of the operation, from payroll to marketing to food and beverage suppliers will need to be reviewed on a regular basis to control costs and profitability. Try asking yourself– am I

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soft drinks getting the best value here and are there any simple changes I can make to improve my profit margin?

One area of the business that can generate significant profit is the beverage menu, in particular, soft drinks.

Fruit based drinks are still perceived to be the healthier alternative to most soft and fizzy drinks and for that reason they are an essential option on any beverage menu.

Some operators choose to make fruit based beverages such as smoothies and juices using fresh ingredients but this generally slows service and limits the range of options on offer to the customer. Plus buying in fresh fruit which is left unsold just means wastage and that is a drain on profits.

As a more cost effective alternative look out for ‘blendable’ fruit based smoothie concentrates which are available in a whole

range of innovative flavours including the more unusual combos of cherry and passionfruit, pomegranate and blackcurrant and blueberry and blackberry. These give consumers the fresh fruity goodness that they are looking for in a convenient, ready to go format. There’s no wastage, no prepping in advance, no storing of fresh fruit and no skill required. Just mix with ice, blend until smooth and serve!

Update the menu in an instant Using a smoothie concentrate creates an opportunity to instantly extend or update the menu with a delicious range of unusual drinks which are perfect for anytime of the year, particularly the spring and summer months when consumers may be looking for light and fruity thirst quenchers.

Don’t underestimate your customers! They will happily try something new and mixing up

We have delved into our recipe books and come up with a few ideas that you might like to try as the weather warms up, over the coming summer season: STRAWBERRY CHEESECAKE FRAPPE - Serves 1 Ingredients: • 4fl oz milk • 1 fl oz Simply Strawberry Syrup • One cup of ice • Simply Vanilla Frappe powder • 2 teaspoons of Simply freeze dried strawberries • 2 teaspoons biscuit crumb topping Method: 1. Pour the milk into the blender and add the Simply Strawberry Syrup and 1 scoop Simply Vanilla Frappe powder. Add strawberries and biscuit crumb topping, reserving 2. Add a cup of ice and blend for 30 seconds 3. Pour into a glass and top with whipped cream and decorate

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CHOCOLATE CARAMEL FRAPPE - Serves 1 Ingredients: • 1 scoop Simply White Chocolate Frappe powder • 4oz fl milk • 1 oz Simply Chocolate Caramel sauce • 2 teaspoons Simply Chocolate Caramel bits • One cup of ice Method: 1. Pour milk, White Chocolate Frappe powder and caramel bits (reserved a few for the top of the drink) into a blended 2. Add a cup of ice and blend for 30 seconds 3. Pour into a glass and drizzle with caramel sauce and the reserved caramel bits

How to Start & Run a Coffee Bar

soft drinks the menu with new beverages and seasonal recipes might just be the one thing that keeps your customers coming back for more.

It’s easy enough to plan a whole year of recipes based on consumer trends, calendar events, special foodie days and seasonal ingredients. For example, celebrate Wimbledon fortnight with a range of strawberry based drinks and classic afternoon teas, feeding into a sporting event which grips the nation and generating extra sales revenue at the same time. Why not give each themed recipe a fun name which will intrigue customers and they will then be compelled to order. (Hot Shot and Strawberry Smash springs to mind!). Or even dress the café with a few tennis themed props or memorabilia.

Bear in mind that old adage, ‘don’t tell, won’t sell.’ Once you have devised your new seasonal menu, use a few affordable

marketing tactics to help spread the word such as social media channels, free samples at local events or mini tasters delivered to local businesses etc.

WHITE CHOCOLATE RASPBERRY RIPPLE FRAPPE - Serves 1 Ingredients: • 1 scoop Simply White Chocolate Frappe • 4fl oz milk • 1 oz Simply Raspberry Sauce • 2 teaspoons freeze dried raspberries • One cup of ice

Method: 1. Put ice into serving glass and pour over lemonade 2. Add the raspberry syrup and stir. Serve!

Method: 1. Pour milk, White Chocolate Frappe Powder and raspberry pieces (reserved a few for the top of the drink) into a blender 2. Add a cup of ice and blend for 30 seconds 3. Pour into a glass and drizzle with raspberry sauce and the reserved raspberry pieces RASPBERRY LEMONADE - Serves 1 Ingredients: • Simply Traditional lemonade • 2 pumps Simply Raspberry syrup • One cup ice

How to Start & Run a Coffee Bar

Tea trends Although everyday tea will always be the mainstay of the beverage menu, consumers are keen to experiment and try new options and the pressure is therefore on operators to deliver if they want to claim a larger slice of the market.

For example, fruit teas grew 2.5% last year and they are especially popular amongst the under 45s. Fruit based iced teas, of which there are now some top quality brands on the market, are another quick and easy way to ring the changes. You might be surprised to learn that there are some really innovative iced tea flavours available including peach,

SUMMER FRUIT SMOOTHIE - Serves 1 Ingredients: • 5 fl oz Simply Summer Fruit Smoothie concentrate • 3 fl oz water • One cup of ice • 1 teaspoon of Simply freeze dried blackcurrants • 1 teaspoon Simply freeze dried Strawberry bits • 1 teaspoon Simply freeze dried Raspberry bits Method: 1. Pour smoothie concentrate and water into a blender. Add the fruit pieces.

2. Add a cup of ice and blend for 30 seconds 3. Pour into a glass and serve!

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Caf

soft drinks

passionfruit and lemon, and jasmine and lime which are a great alternative to everyday tea blends that your customers will just love.

Don’t miss the opportunity to upsell Apparently 82% of purchase decisions are actually made inside a store. That means that people are buying things they didn’t intend to buy; they’re buying on impulse. On this basis, upselling a sweet or savoury snack alongside a beverage order is an opportunity not to be missed.

Keep areas near the till, counter and queuing area clear for those carefully selected

all important impulse lines. Wrapped items such as biscuits are perfect because they are great with a beverage or can be slipped into a bag or pocket to be enjoyed later. Anything that consumers can buy without thinking too much about the price, ie under the £1.20 mark, works particularly well.

Another interesting fact is that 16% of those impulse purchases are driven by an in store display. Some suppliers offer a wide range of free of charge material to help drive sales such as posters, shelf talkers, postcards, promotional leaflets etc. and making use of these will not only add a focal point for your coffee shop, but will help drive additional sales too.

Good luck!

IBC are known as the industry innovators – it was founder and managing director, Sheldon Flax, who discovered flavoured syrups whilst on a hunt for new products in the USA and subsequently introduced them to the UK coffee shop sector. Since then the company has evolved with a full range of Simply branded top quality drinks including flavoured syrups, smoothies, ‘no blender’ Frappe liquids, hot chocolates and so much more.

With over 20 years of industry experience and know-how to draw on, IBC has become the ‘go to’ partner for any operator who wishes to maximise year round sales from the beverage menu.

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We have teamed-up with Booker so that you can have all your grocery and cleaning products delivered direct to your store via an account set-up for you through IDC – again single statement and payment, saving you independent coffee shops across time and administration.

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Which syrup is best; what’s the difference?

Perhaps we can help you decide There’s a multitude of things to consider when choosing the right syrup and whilst price is always a consideration, have you ever thought about why one is more expensive than another? As with most things in life there are good reasons why this would be.

The 1883 Maison Routin brand is a premium product that for a start tastes great. Thanks to a rather technical flavour lab and a team of passionate baristas and mixologists, each flavour has to pass stringent flavour and aroma tests. In addition the brand is unique and is not available to own label so you can’t purchase anything like it in a different bottle.

There is a vast array of choice with close to 100 flavours that not only include the classics but also novelty ones such as French Madeleine and Elderflower Iced Tea. In addition there are sauces, Création FRUIT purees and apart from the 1 litre syrups in PET and glass, there’s retail size and baby miniatures. UCD have also developed the brand Kool Kup, a special drinks thickener perfect for frappes and milkshakes and a collection of toppings to accompany the 1883 range.

The brand is supported by plenty of merchandising, lots of delicious recipes, a wipe clean easy guide, table cards and displays to name but a few.

It’s the healthier lifestyle choice as 1883 is very concentrated. The smaller measure means less sugar in the final drink, so it’s coffee flavoured with syrup, rather than syrup flavoured with coffee. Also the questions surrounding ingredients nowadays can be a bit of a minefield, things like “is it artificial preservative free, natural extracts, kosher, vegan, vegetarian, gluten free?” the list goes on. 1883 really does deliver in this area with full advice along with allergens available on request.

It’s the most cost effective product, a bold claim but being concentrated means that you use less, therefore 1883 delivers a lot of measures per bottle, enough to flavour 125 8floz hot coffees, so it goes a lot further than other brands. When you want to compare the real cost, look at the price per drink produced for the real impact to your business.

Take our cost per measure challenge; email UCD at sales@ucd.uk.com with what you pay per bottle, what brand and what bottle size. You can even tell us the drink and its size and we will give you a cost per measure comparison.

1883 Maison Routin is a competitive brand that delivers on every level and that includes its price!

UK Distributor UCD www.ucd.uk.com T: 01233 840296 E: sales@ucd.uk.com

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advice

Choosing a dishwasher Thinking about buying a new dishwasher for the new café bar? You’re going to be faced with a dazzling array of gleaming machines – so which one is best for your needs? Bill Downie, managing director, Meiko UK, has some insider tips

The first thing to decide is what throughput you need? Your new machine must cope with peak times.

In terms of racks per hour, the numbers quoted (by all makers) are the theoretical maximum, but you need to cut these by half to get a sensible average for undercounter machines. They are slightly higher for the more efficient hood-type machines.

For instance, a 400 x 400mm basket undercounter glass machine washes a max of 30 racks per hour in theory, but in practice, does more like 15-20.

Undercounter and hood-type pass through machines with a 500 x 500mm rack wash max 40 racks per hour in theory. In reality that’s 20-25 for the undercounter, closer to 30 for the hood-type where baskets can be loaded quicker.

In any case, use a hot water supply for the fastest turnaround.

You can save space with optional built-in

32

water softening. The UPster 500x500mm rack undercounter and hood machines are available with a softener built-in, saving valuable floor space and making it less likely for staff to forget to put the salt in!

You can also cut steam emissions.

A machine with an integral vapour condensate hood, like that on the UPster H500 machines, helps make the machine ideal for cramped spaces as the hood recycles the waste heat from steam to pre-heat incoming cold water.

The hood helps to stop the rush of steam as the hood is opened, making the area less steamy and more comfortable to work in.

How to Start & Run a Coffee Bar

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advice unload dirty ware. Inlet/outlet tabling helps the warewash area work most efficiently.

Baskets: Come in all shapes/sizes for plates, cups, cutlery and to protect glassware.

Most sites need a mix…check out options at www.shopupster.co.uk.

Water treatment: Unless you buy a machine with built-in reverse osmosis, you’ll need water softening. These must be located where staff can easily fill them with salt, or choose a dishwasher with an integral softener.

What about power? Machines come rated for different power levels. Check your supply and choose the most powerful for fastest results. If in doubt, ask your supplier for advice.

Reliability is crucial. Planned maintenance through warranty and beyond ensures best lifetime value and reliability. Always ask your supplier for details.

ACCESSORIES Stand: Lifts the machine off the floor and puts the open door of an undercounter at waist height, eliminating bending.

Tabling: Allow space for staff to easily load/

THE THING THAT MAKES ALL THE DIFFERENCE IS: The machine must be checked and operating 100% (commissioned) by technically proficient engineers. It must be level on the ground, fitted neatly to the (right) services and tabling and the chemicals must be ‘tuned’ to deliver best results. Our factory-trained engineers will commission your machine, safeguarding your warranty.

TROUBLE FREE WAREWASHING • Look for help with designing the area.

Suppliers can advise on the best set up for your needs.

• ‘SHOP UPster’ can provide caterers with the whole package; advice, the latest machines complete with ‘peace of mind’ professional installation and commissioning.

• A good glass or dishwasher is an important investment to your coffee or sandwich bar, so it is important that it is used correctly and maintained properly. It is vital that all members of staff are trained on how to use and maintain the machine to ensure your machine has a long, trouble free life and you have clean and sparkling cups, glasses and plates as and when you need them.

• Suppliers like Meiko are more than happy to provide you with the initial training you need.

www.shopupster.co.uk Meiko UK: Tel: 01753 215120 34

How to Start & Run a Coffee Bar

advice

How to market your sandwich or coffee shop online Raman Suleiman, iZettle Team Leader, Inbound/Outbound, Europe, offers some tips on promoting your business through social media

‘Personas help you to be relevant’ I would like to offer some hands-on tips on how to conquer on Facebook, master Instagram and rule the world of Google. But before we tell you how to buy Facebook ads and boost your website on Google – let’s run a crash course in marketing strategy!

1. Customer(s) first!

To understand your customer might sound obvious. But if you’re honest to yourself – when you’re busy doing other things it’s easy to ignore the changing preferences of your core customers. “They’re like me, I don’t need to do research!”

One way to better understand the groups of people you’re selling to is to create personas.

Give them a name, a face, jobs, interests and priorities. Why not even life goals? Then you

How to Start & Run a Coffee Bar

can continuously weigh your marketing tactics against your personas.

For instance, does Anna, 54 (a nurse who loves English literature and has a caffeineaddictive personality) spend time on Instagram – if not should I really invest my last pounds on targeting her through Instagram’s ad manager?

Probably it’s more effective spending some time on offering free coffee to her outside Sainsbury’s when she’s done shopping?

TO DO’S: Speak to your customers – ask them questions! Prioritise friendly chats with new and old customers and throw out questions.

Ask them how their dream sandwich bar and coffee shop looks, where they search for information on sandwich bars and cafes – and,

35

advice of course, how they found you. It’s a win-win: 1.) you show that you care about them, 2.) you get invaluable information about what they’re looking for, 3.) you create relationships that’ll lead to loyal customers over time, 4.) do it well and you create ambassadors who’ll spread the word about your amazing coffee shop experience!

Create physical personas and put up on a wall. Based on the convos you had, create 3-4 personas – representative customers who differ from each other in terms of age, interests and preferences when it comes to coffee and food. Select portrait photos for each persona and put them up on a wall. Glimpse at your new personas every other day (especially when you feel stressed out or overwhelmed).

Choose platforms where you should focus.

From your previous customer conversations – connect each persona to its most relevant social channel. Facebook, Twitter, Snapchat – or maybe some of them are more active in offline channels? Don’t forget that some groups still highly value the local newspaper or pinboard downtown.

‘Attract 30% more customers to your sandwich bar or coffee shop by the end of the year through four contests on Instagram and monthly discounted offer codes on Facebook’ DON’T FORGET TO… Ask open questions. Don’t start off by asking how much time they spend on Facebook.

Rather throw out a question how – and if – they use any types of social media. Then move on to ask about favourite platforms. Open questions will lead to honest answers.

Understand what you actually sell.

Be smart when you’re interviewing your customers. There are a dozen sandwich bars and coffee vendors out there – maybe it’s not the need for caffeine you’re satisfying. Are your

36

customers if they’re looking for a good deal or to be seen as trendy?

Print out customer reviews. Why not pair your personas (that you’ve put up on a wall) with good and bad reviews you’ve received on Facebook?

2. How to stand out With 7 billion people populating the world, it’s not exactly getting easier to come up with new ideas: something smart and different; something unique. How do YOU stand out?

Let’s rephrase the questions and ask yourself – why they should go to you instead of someone else? Are you competing on price, like offering the cheapest food or cappuccino in the neighbourhood? Do you spend more time than anyone else on teaching your staff so you guarantee a new level of customer service?

TO DOS: List all the advantages of your own shop.

What are you most proud of: your hot cabinet, Italian espresso machine or your talented barista who makes everyone feel special?

Maybe all of them?

List all the good and bad things about your top three competitors. Visit them, spend time, absorb everything. What’s the atmosphere?

Lightning? Cleanliness?

Map out the differences! What are you offering that’s significantly – or at least in

How to Start & Run a Coffee Bar

advice some way – different from the options nearby?

Review your compiled list of competitor features. Your conclusion will make up a good description of your business – and how it is in fact (somehow) different.

DON’T FORGET TO… Think outside the box. Maybe you’re not that different when it comes to the food or coffee you’re selling – but you can communicate in a totally different way? Evaluate social media posts and ads from competitors and think of better ways to convey the same message.

Consider doing the opposite. Doing the same as everyone else is normally not a successful strategy. So called thought-leaders act differently, but yet fully understand their customers.

3. Goals and how to reach them Your goal is to stay profitable and grow your business! But how? Do you want to attract new customers? Sell more to existing customers?

Let’s keep things straight and use an example goal: To test if you’ve come up with an effective goal, try it against the S-M-A-R-T philosophy.

Is it Specific?

Break it down. What do you want to accomplish? 30% more customers! Why would it make sense to my coffee shop? ‘Cause 30% more customers means more money! How will you make this happen? Well, my creative friend John and I will come up with some new

38

engaging contest ideas for Instagram.

Is it Measurable?

Yes, you don’t want to attract “more” customers, you want to attract 30% more customers!

Is it Attainable?

Is it realistic to achieve a 30% increase? Based on the fact that you doubled your revenues last year, yes!

Is it Relevant?

Based on your customer interviews, you know that your target audience spends a lot of time on both Instagram and Facebook, check!

Is it Time-bound?

I said by the end of the year, boss!

But only through your KPIs – so called numbered measures of success – you’ll know if you’re actually going in the right direction.

Simply if your postings on Facebook in the end lead to more pounds into your pocket. For example, by customising discounts for specific items in your product library (in your Point-ofSale) – for beverages you run on promotions – you can easily measure the success and see the percentage of returning customers in your sales data.

Examples of social media KPIs for your sandwich bar and coffee shop: • Followers and fans • Shares on Facebook • Comments • Post reach • Video views Some additional useful KPIs for your website and email marketing: • Backlinks • Website traffic • Subscribers to newsletters TO DOS: Write down all your goals. Make sure you can connect all goals (estimated likes, followers etc.) to somehow increased revenues, cost savings or increased brand awareness.

Remember that you’re not running a non-for

How to Start & Run a Coffee Bar

advice Party hard. Finally, realise when you’ve profit organization – at the end of the day accomplished your goals – so what is your money matters. reward? And what is the reward for the team?

Create a process for each goal. For example, let’s assume you’d like to increase your followers on Facebook from 500 to 1000 followers. Publish 2-3 posts / week - respond to all comments on your posts - spend £150 on Facebook ads per week - replace the cover photo every Sunday with new product photos - review and follow-up on a regular basis to track follower increase.

Set a budget – and distribute among your channels. Nope, it doesn’t have to be rocket science. Figure out how much you can spend on marketing based on your anticipated annual revenue. That way you can much more easily figure out how to distribute it over the year and identify how much you’re spending on different marketing channels.

Pick out your most profitable persona.

Prioritise among your target audiences wisely.

Which one will spend most money in your premises? Probably it’s a good idea to focus on marketing yourself more in channels where the ‘big spenders’ hang out.

‘Are you giving 20% discount to every customer who likes you on Facebook? Create a customised Facebook campaign-item in your product library. Follow up after some weeks to measure the success!’

DON’T FORGET TO… Set a reminder. Make sure to follow up your goals – put reminders in your calendar of when to check in followers, openings rates in newsletters etc. If you spent time to create goals, it doesn’t make any sense to just carry on and forget about them.

See if there’s a useful template for you.

Use one of the goal templates out there! We love the template provided by Hubspot – a great resource for multiple fields of digital marketing. It’s a 100% SMART idea!

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pro�ile

Building a coffee business in Wales Jonathan Hill started a new coffee chain, Hi Coffee, four years ago and is now expanding rapidly. Access to a ready source of finance has been a considerable help.

Hi Coffee, a Welsh train commuters’ pit-stop for quality refreshments on the go, is the brainchild of 26-year-old local entrepreneur Jonathan Hill.

From opening his first outlet four years ago, it has grown to become a national chain throughout rail and travel hubs in Wales, and is now branching away from railway lines to mainstream outlets. The business is on track to reach a £1.5m turnover when it reaches nine outlets.

As well as serving great coffee, the food includes pizza, sandwiches, pie and mash and cakes.

He saw a gap in the market after feeling consistently disappointed with the food and beverages on offer at stations. He felt there was no excuse for commuters to be left with a bad taste in their mouth. This is when Hi Coffee was born.

The first outlet opened on platform 4, Newport Station in 2013 and became an

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instant hit. Jonathan was keen to grow the brand but like any small business securing sufficient funding is never easy.

Hi Coffee had been using iZettle card readers from the start and as soon as Jonathan learnt that you could gain extra capital by getting an advance on future card sales with iZettle it was a no brainer.

Jonathan explains: “I held a call with iZettle on which we agreed a fair fee for the advance and the money was with us the next day. iZettle Advance gave me the freedom to upscale my business at a rapid rate. The advance worked as a stepping stone by keeping my cash flow steady!”

With the extra support from iZettle, Jonathan opened his second Hi Coffee in Neath Station.

With two stations under his belt, a buzz was beginning to build around the brand.

Jonathan felt it was time to grow the operation out of the stations by opening Hi Coffee’s

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first standalone store in Newport, Millennium Plaza. Whilst managing to maintain the company’s voice, Jonathan worked to create a relaxed atmosphere, catering for a wider audience. He put together an extensive menu which included a selection of wines and craft beers. The cafe includes a workspace with tablets and free wifi which Jonathan states “Brings back the old school internet cafe vibe” This venue was one of Newport’s first restaurants to be on Deliveroo, bringing customers the Hi Coffee experience without having to leave their house!

Jonathan suggests “Think about each step and see every opportunity as a gateway to get your business to where you really want it to be.”

When building a brand in an already crowded sector like cafes, it is more effective to think outside of the box. This year, Jonathan launched Little Hi Coffee, an express mobile shop on a Piaggio Ape 50cc Scooter. Small but effective, providing the high-quality coffee whilst promoting the brand. A second new format, Hi Coffee Metro is expected to pilot later this year.

“We’ll be bringing a metro store to Newport City Centre, so we can be more central to those who appreciate premium

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coffee, food and the great efficient service they have experienced in the stations,” adds Jonathan.

As Hi Coffee continues to expand, remaining consistent is important to building the brand. This year will see the opening of two new formats. Being the manager of a chain it is important to oversee each development to ensure the brand’s integrity and high standard is immediately recognisable throughout all formats.

Jonathan enthuses: “It is important to me that I am heavily involved in the design and planning every aspect of the Hi Coffee brand.”

Growing an idea into a brand is never without complications, it requires total commitment and focus. If you believe in a plan, keep driving it forward. Celebrate your successes and accept your weaknesses.

Jonathan advises: “Taking a business from vision to reality requires energy, metal strength, mindfulness and an immense amount of self-belief and confidence. That’s certainly not to say I do not ever lack confidence in myself.”

This year Jonathan has been featured in Wales Online’s ‘Top 35 Under 35’ and this is just the beginning of this success story.

By 2020 he expects there will be 20 Hi Coffee stores throughout Wales. Jonathan’s ability to grow and adapt with each new development and store is the driving force behind the brand’s spectacular growth.

How to Start & Run a Coffee Bar

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training

Invest in staff training Should you invest in staff training as a new entrant to the market?

The short answer is definitely yes, says Simon Speed-Andrews, head of training at Miko UK, who has 30 years’ experience in the industry, having successfully managed a chain of coffee shops in the West Country before joining Miko twelve years ago to head up the training arm of the business

Looking back on the time when I managed a number of coffee shops, I can remember quite clearly the excitement of picking up the keys for a new site. The anticipation of a new business venture that was about to unfold; the satisfaction of reaching those all important milestones such as the breakeven point or a specific sales target; the buzz on receiving a compliment from a contented customer. Happy days.

With the good also comes the not so good.

Dealing with difficult customers, awkward suppliers, staff issues, bureaucratic local

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councils, equipment breakdowns, and, of course, HMRC. The challenges are part of running a business and we all have to experience them at some point.

Sometimes it was hard enough to just get through the day, let alone thinking about all the other things on the ‘to do’ list that I had read about in management books such as forward planning, profit analysis and marketing.

One thing that I learnt then, although I didn’t necessarily appreciate it at the time, and what still rings true today is that as a business

How to Start & Run a Coffee Bar

training owner you must always, always make time for employee training and development. And that is more relevant today than it has probably ever been.

A changing marketplace We are fortunate enough to be working in an industry which continues to thrive. The market is buoyant and still expanding and so we are seeing lots of newcomers lured in by the prospect of big profits.

This is great news for consumers. More competition means operators have to work harder and smarter in order to grab a share of the market. Service levels consequently improve and the quality of the food and beverage offer increases. Everyone is happy.

But how do you maintain a quality offer in a market which is staffed in the main by casual and part time employees? Staff retention is low and this inevitably puts a strain on training requirements.

The branded coffee shop chains are under constant pressure to deliver a consistent customer experience across their outlets and regular staff training is therefore vital. With a dedicated budget and the right mind set they appreciate that consistency can only be achieved by setting and maintaining standards through a committed, ongoing training programme.

It is the smaller, independent operators that sometimes struggle to justify an investment

in staff training. When funds are limited, it is often training around food hygiene and safety that claims the lion’s share of the budget which is fine, but what about the coffee?

The speciality coffee menu has the capacity to turn a great profit and any investment in training which helps to drive quality and therefore generate repeat business, should not be overlooked.

As a specialist outlet, which most ‘coffee shops’ claim to be, the quality of the coffee on offer is critical to the success of the business.

Customers vote with their feet and if they are served a poor coffee the chances are that they won’t complain but they probably will not come back.

Why invest in staff training?

Nearly everyone, whether they be new recruits or long standing employees will benefit from some form of training. Profits aside, a well trained workforce is generally a happy workforce. If engagement levels are high this will reap many benefits in terms of improved staff recruitment, retention and motivation.

I have five top reasons for investing in staff training: 1. It helps attract and keep great employees Staff training is a perk and can often be used to attract the right calibre employees. When comparing job offers, potential employees will usually favour the opportunity that offers training. Showing a commitment to employee development encourages loyalty and helps you build a reputation as a decent employer.

2. It keeps employees engaged at work Bored employees can be a negative influence in the workplace, upsetting customers and colleagues alike. A development programme can help keep everyone onside and engaged, keeping the boredom at bay and creating a harmonious workplace.

3. It helps create a pool of talent No one knows your business like your existing

How to Start & Run a Coffee Bar

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training employees so when it comes to recruitment it is so much better to promote from within if possible. Training staff so they are ‘promotion ready’ just makes sound business sense.

4. It can help you increase sales OK, training is an expense but think about the additional repeat orders you will gain from satisfied customers who appreciate your expertly prepared hot beverages and unrivalled customer service.

5. It forces you to look to the future Looking at training needs is an ongoing activity and forces you to look ahead at the future path of the business. What worked this year might be right for next year. Forward planning in this way will help.

So having made the decision to invest in staff training, what options are available?

City and Guilds Barista Level 2 If you have a barista who is keen to develop his skills then I suggest initially opting for an internationally recognised qualification such as the City & Guilds Barista Level 2 VRQ (Vocational Related Qualification) which can be organised through an approved training provider.

A level 2 qualification indicates an introductory level knowledge and involves a minimum of 20 hours classroom based learning plus some practical training to

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develop the necessary craft skills to prepare and serve drinks such as coffee, tea, chocolate and smoothies.

The City and Guilds programme focuses on creating a rounded individual who can add real value to a business. In addition to beverage making, other skills as such customer service, taking payments, queue management, maintaining a clean and tidy workplace, and even preparing and serving light lunches and snacks are all included as part of the training.

Modern apprenticeships Another approach is through a modern apprenticeship in barista skills which consists of on-the-job training and classroom instruction, allowing apprentices to ‘earn while they learn’. Some employers are eligible to receive a financial contribution from the government and the training programme which includes City & Guilds qualifications is provided free of charge via a third party approved trainer. Find out more here: www.gov.uk/take-on-an-apprentice/overview Recruiting well pays dividends One way that the operator can help ease the training burden is to give some thought to recruiting the right people in the first place.

Individuals with a real passion for coffee who are career minded and enthusiastic are likely to be much easier to train whilst becoming a great asset to the business.

In my experience, I have found that baristas from other countries with a developed coffee culture view their work as a highly skilled role, a profession, and consequently someone with a similar outlook would always be my first choice when recruiting a trainee barista.

Good barista skills can take a lifetime to develop and are constantly evolving in line with consumer demands and the requirements of the speciality coffee menu. A commitment to ongoing training, for complete beginners and more experienced staff should therefore be a given in any progressive operation.

How to Start & Run a Coffee Bar

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technology

Invest in technology Don’t be tempted to skimp on technology when it comes to setting up. The benefits of a good POS system will ensure a relatively quick pay-back and vastly improve your financial control of the business.

Oliver Rowbory, co-founder of The Good Till Co, explains how.

When you are setting up a new café, sandwich bar or coffee shop you’re inevitably going to face some significant upfront costs. Cash flow is absolutely critical for any small business, and at a time when 40% of UK start-ups fail within five years, it pays to watch the pennies.

Wherever you are based in the UK, premises are likely to be one of your biggest expenses.

However, on top of the rent and rates, chances are you will have to spend money on furniture, fittings, signage and a seemingly endless list of other essentials. And of course, any selfrespecting barista is going to need reliable equipment to ensure they’re consistently delivering the perfect cup to their customers, because in such a competitive market, quality counts.

So, with so much initial potential outlay

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on getting your premises looking right, where should digital technology like Point-of-Sale (POS) systems fit into the list of priorities? Is it the kind of luxury that would be nice to have further down the line when budgets are less stretched, or should it fall into the essentials category from day one? Let’s examine some of the pros and cons technology brings.

THE VALUE OF TECHNOLOGY Free customer WiFi is “essential” The days of the “internet café” may have been and gone, but there is no doubt that the web has changed the way coffee shops operate. It has shifted customer expectations and behaviour – a recent study showed 90% of people in the UK now class broadband as “essential”, ahead of only food, water, energy

How to Start & Run a Coffee Bar

technology supply and housing.

Despite the ever improving 3G and 4G network across the UK, many people still look to a coffee shop as somewhere they can connect to the internet and get some invaluable work time. While many outlets still charge for the privilege, the number of venues offering free Wi-Fi access has now shifted customer expectations so that it has now become the expected standard.

likely to miss out on the up-sell or lose them altogether.

Many coffee shops are now even taking convenience a step further, with apps that allow customers to order ahead and cut out queues. It may not feel like an essential service right now, but if your competitor down the road is offering more convenient options, it could have a significant impact on your revenues.

Understanding your customer In recent years, online businesses have had an advantage over offline competitors through the ability to use data to understand who is spending what and when, and which promos work best.

Now technology is blurring the lines between online and offline, even small independent coffee shops can capture and use data to send highly targeted offers to customers and run loyalty schemes to maintain an active and engaged customer base.

The data you capture through POS technology can also help to identify seasonal trends in customer behaviour. Pre-empting what your customers will demand will not only allow you to ensure you always provide a convenient service for them, but you can also combine it with intelligent use of stock data to allow you to keep effective control over ordering.

Power to the people Managing staff can be one of the challenges that takes new coffee shop owners by surprise, as it involves not only coordinating resources, but also managing personalities and dynamics. The data collected by a smart POS can be hugely beneficial when it comes to staff management, particularly as it separates the facts from any emotion, so you can make more informed decisions wherever you are in the world.

With the right data points you can look at whether you’re getting the ratio of staff to activity correct at different times. You can also dig deeper to see how staff are working, pulling out information like your best salesperson, your sales vs wage cost or even spotting opportunities to develop staff.

In today’s increasingly anonymous digital world, genuine human interaction is scarcer than ever before. This only makes a human connection more valuable, so it pays to use data and technology to enable your team to work smart and feel engaged with the business.

Convenience is the new loyalty At a time when customer loyalty continues to decline, convenience is key, so you really need to make the customer experience as hasslefree as possible.

The explosion in popularity in contactless payments and the emergence of mobile payment options like Apple Pay have also shifted customer expectations. Take a moment to consider how much cash you have in your pocket at any time – is it less than the price of a coffee and a cake? If you’re limiting people to the cash they have in their pocket, you’re

How to Start & Run a Coffee Bar

Be financially savvy For coffee shops, as with any small business, problems with cash flow can be crippling. Data and technology can be your best friend when it comes to understanding cash flow trends within your business. It can help you identify a problem before it hits, which is a potential life-saver.

You will often hear small business owners say they’re “not a numbers person” or that

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technology they just hand all their bookkeeping and finances over to an accountant to manage.

That is fine, but technology now makes it so easy to integrate financial data with accountancy software that there really is no excuse not to know your numbers. In fact, the integration of accountancy software with your POS is so proven to increase efficiencies that HMRC VAT inspectors are even now recommending it.

The cost of technology But surely all this technology must come at a cost? The kind of data and business intelligence that used to be available to only the largest coffee chains is bound to take a significant chunk out of an already stretched budget for a new independent outlet, right?

Well the good news is that a number of technological developments in recent years have combined to make such services more accessible than many people imagine. The costs can vary wildly, but broadly speaking they fall into one of two categories: Traditional POS systems: On their most basic level, traditional POS systems are little more than a calculator and a secure cash drawer. However, they do range all the way up to state-of-the-art bespoke systems used by some of the giants of the retail world.

Today, most traditional POS systems operate on a Windows based platform, combining a visual display with hardware to take payments. They are also often “off-theshelf ” options, whereby the full POS system arrives ready to plug in and operate for yourself. However, this also means a large initial outlay to buy the system, which can run into thousands of pounds.

Cloud-based POS systems: The development of the “cloud” has been one of the most significant technological trends of recent years. For POS systems, it means data is collected, processed and stored securely on a

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remote server, which means they can not only work quicker and more flexibly, but can also be supported at a lower cost.

The mainstream adoption and availability of smart devices like tablets has also enabled POS providers to utilise powerful hardware cost-effectively. By integrating an iPad into a POS solution, cloud-based POS system can simply run via app, which providers can support and update remotely. The software runs in a way that is very intuitive to users, and the hardware looks pretty cool to customers too.

The big difference with the cloud-based POS system is that they typically run on a “Software-as-a-Service” (SaaS) model. In some cases there is some initial outlay for the tablet itself, but many offer free trials and supporting a single till unit can cost little more than £1 per week, which can be much easier to swallow for a new coffee shop.

The Good Till Co. Oliver Rowbory is co-founder of The Good Till Co., a cloud-based POS system that gives independent bars, coffee shops and retailers access to powerful data intelligence. For more information or to try the complete hardware and software solution in a free 30 day trial, go to www. thegoodtill.com or contact 0203 764 0800.

How to Start & Run a Coffee Bar

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