CAFÉ FINANCE
BY CHRIS LEGLER Tasting profitability in your food program
elling food in a coffee shop has always been a dilemma: Should you make your own food or buy all of it pre- made? What are the right quantities to order? How
should you display those tasty treats and bring attention to sandwich options? In some cases, in fact, it may not make sense to sell any food at all.
SWEET IMPULSE Most retail coffee spots will likely want to bring at least some
food into the mix, and for good reason: It can be an excellent source of added revenue and profit. Even though margins are typi- cally lower for baked goods and sandwiches than they are for cof- fee beverages, food is often an add-on sale—customers who were planning to just grab a 12-ounce drip may also buy a muffin as an impulse buy. In a way, then, the profit on food items can be seen as icing on the coffee cake. You didn't need to expend any extra
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marketing or effort to bring those additional dollars in the door (though if you develop a strong food program, you can certainly push that as the differentiator between your business and the competition). Outstanding desserts or meals can also be a way to drive traffic to the store in the afternoon and evening. The trickiest part of selling food in a coffee shop is ordering the
right quantity. Most of the food items sold in cafés are perishable and will last no longer than one or two days. You need a clear sys- tem for employees to ensure that everything you serve will be at the freshness level you want. That point is compounded by the fact that customers will
be far less willing to make a baked-goods purchase when only a few items are left in the display case. A full case will always sell more than a half-full case. Therefore, determining the right quantity requires you to accept the fact you'll be throwing a cer- tain amount of product away and to plan for that as efficiently as possible.
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