Focus on: church café operators In an effort to better understand our church customers, we surveyed dozens of church café operators. Membership in these houses of worship ranges from a few the hundred to several thousand. Here’s what we found: • Nearly one-third (27 percent) of their cafés have been open for two years or less. The rest have been in operation between three and six years. • More than 70% serve beverages that include lattes, blended frappes, blended ice coffees, coffee and hot teas. One respondent noted that his church’s café serves specialty drinks created by the teens in the membership. • More and more churches are expanding their beverage offerings to appeal to consumers’ broader tastes. To this end, 56 percent now serve chai tea lattes and fruit smoothies. Additionally, some churches (50 percent) now offer iced teas and 27 percent offer lemonades. • Only 13 percent of churches offer Sunday-only beverage service; 69 percent open their cafés in conjunction with other weekly events and activities. And, 19 percent of these cafés — mostly in larger houses of worship — are open every day. Driven by community and fellowship We asked café operators in houses of worship a critical question: Why do you offer café-style beverages at your church? The vast majority (82 percent) said that creating a pleasant atmosphere for parishioners was very important or critical. But — with a 100-percent response rate — the overwhelming motivation was to encourage fellowship and a sense of community. Additionally, encouraging young people to attend was a primary consideration for 93 percent of respondents. And, as Kelly White, lead pastor at Horizon Church in Victorville, CA, points out: “It gives our teens job experience that they need.” What about planning? Beverage product selection topped most respondents’ lists when planning their church cafés. It’s no wonder, then, that these forwardthinking church cafés offer so many drink options. For Carlene Boldizar, a manager at Central Church in Collierville, TN, Big Train Chai and DaVinci syrup and sauces are proving very popular. The old adage “location, location, location!” rings true at churches, too; 81 percent said the café location was very important or critical to its success. Accordingly, most churches (75 percent) picked locations where a large number of people could gather, and 44 percent chose locations that were previously underused. “We created a fun visual look, as well as plenty of seating to promote places for people to connect,” explains Horizon Church’s Kelly White. Additionally, 100 percent of respondents were concerned about resources, and 94 percent considered costs to run the café. Electricity availability (to operate blenders and other equipment) and proximity to a kitchen or back office area also weighed in. When it comes to keeping operational costs in check, 93 percent of respondents said they use volunteers to man the barista stations. Others (20 percent) pay support staff. And, others (7 percent) use existing church staffers to help with the administrative tasks for purchasing and setup. Revenue building Although most respondents indicated profit was not a factor in setting up a church café, one still must consider the price-cost model to gauge the potential for church fundraising. According to our survey, the average cost of a specialty drink — to the church — ranged from $.30 to $1.75. To the customer, specialty drink prices ranged from $3 to $4. By keeping overhead low and staffing primarily with church volunteers, church cafés can generate healthy margins of $1.25 to $3.70 per drink. This can add up quickly: respondents in our survey serve between 100 and 1,000 drinks per week! With some 6
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quick, back-of-the-napkin math, that’s a monthly revenue increase between $500 and $16,000 — vital funds for supporting existing church ministries or funding new ones. No barista needed As with any operation, quality is essential to a successful church café — in particular, great-tasting offerings. When asked to rank their selection criteria for specialty beverage products, church café operators cited flavor and taste as No. 1. Food safety concerns (which makes recognized brands preferred) was also very important, followed by customer service — especially, accurate and fast shipping (before-Sunday delivery) and the ease of purchasing online. Ease of use and preparation weighed in heavily, too. In this respect, Big Train — a leading specialty beverage powdered mix brand — has supported churches for decades. “Many churches like the ‘just add water’ approach to making gourmet drinks,” explains Levi Andersen, Kerry’s Beverage Specialist and former coffeehouse owner. “[Churches] like beverage mixes from brands like Big Train and DaVinci Gourmet, because anyone can learn quickly, including church volunteers.” And, for Karen Maitoza, who represents Summit Christian Church in Sparks, NV, the types of products she likes to purchase come down to a few key criteria: “shelf-stable; no refrigeration space needed.” Easy preparation is also important for large-scale events such as pancake fundraisers and church-wide breakfasts. To this end, Goldendipt — a brand with a 50-year history — offers churches a wide variety of baked good mixes in large-quantity bulk bags: gourmet pancakes, waffles and more. All in a name To name, or not to name, your church café — that is the question. Creating a brand name can create some excitement and intrigue while keeping parishioners coming back. Respondents shared some of their own cafés’ clever names, including: • Intersection Café at New Castle Bible Church (Mackinaw, IL) • Crosswalk Café at Central Church (Collierville, TN) • Grace Café at Grace Christian Church (Sterling Heights, MI) What do they all have in common? A focus on fellowship and faith. Whatever you end up naming your café, focus on building a great gathering place where a growing population of drink enthusiasts will want to congregate. Select easy-to-make products your volunteers can quickly master. And, pick diverse products — that taste great — to keep the fellowship strong. Jim Wendt has more than 20 years of experience in marketing, sales and business development. He is the eCommerce Marketing Manager at Kerry, responsible for digital marketing for Kerry’s North American Food and Beverage Brands, including Big Train, DaVinci Gourmet, Oregon Chai, Goldendipt (griddle, baked goods, batters and coatings products) and Golden Ladle (soups and culinary sauces). churchexecutive.com