A Unique Marketing Spin for a Coffee Shop
Three business partners contacted me about creating a marketing
plan for a coffee shop that they were opening in Greenwich
Village in New York City. They had already leased a 3000 sq.
foot space, which is very large for a coffee shop. They had not
worked out what type of food or coffee they would serve. The
location was too large for it to survive as just a coffee shop
something extra would have to be added.
I met with the three partners where I discussed my concerns
about there new business venture. I convinced them to follow a
plan that I created that would solve the extra space problem for
them. Since they had already signed the lease on the location
that was to large to succeed as just a coffee shop I created a
plan for the coffee shop to be used as a place for community
service groups, discussion groups, art and theatre groups, and
special interest groups.
I arranged for the coffee shop to operate a two-prong strategy.
In the morning it will offer coffee, cappuccino, and breakfast
muffins and an assortment of pastries to the people in the
morning, 65% who are professional. After 9:30 A.M. the coffee
house will strive to become a meeting place for various
community groups, organizations, associations, and a place for
college students to meet after classes. The coffee shop will
have a part time program director who will work with the various
groups to help facilitate community meetings and set up
interesting forums and discussion groups, and to provide other
entertainment for the college students.
I conducted some research on successful coffee shops and found
that the espresso machines contribute well over 50 percent to a
coffee shop's revenue and even more to its profits. The shops
with the best tasting drinks did five to ten times the business
of shops with average tasting espresso. To capitalize on this
the coffee shop should try to get its espresso drinks to over 50
percent of the drinks served. To accomplish this, the coffee
shop set up a separate espresso station, with instruction on how
to make a great espresso. The coffee shop will set its pricing
approximately 25 percent below typical Starbucks' pricing.
The key to the coffee shop is the merchandising and taste of its
specialty drinks, which involves having the right coffeemaker
and coffee, and people who understand the art of making good
coffee. I suggested that the coffee shop purchased a high-end
cappuccino coffeemaker that has a shiny copper and bronze
exterior that can be set out in a separate station to attract
interest to specialty coffees. Two employees along with the
manager were trained in the proper technique of making specialty
coffee drinks.
I worked with the part time program and sales director with
finding groups and creating groups that will hold meetings in
the coffee shop. A discount was offered to any group or
individual who would bring in groups. I created a web site
explaining what the coffee shop has to offer, and what meetings
are taking place and how they can attend these meetings. The
coffee shop will send out coupons to groups offering a
25-percent-off discount.
I bought a list from a list broker of organizations,
associations, and local community groups in the area. I wrote
solicitation letters to them explaining what services the coffee
shop had to offer. I created online discussion groups that would
involve potential clients for the coffee shop. Articles were
written for on line publication for the organizations,
associations, and local community groups that held meetings at
the coffee shop. These articles contained links to the web site
for the coffee shop that would list the upcoming events and
discussions that would be held at the coffee shop. Print ads
were also taken out in a small local publication that the
targeted market reads.
After about 5 months the results of these marketing efforts had
paid off. The coffee shops morning business was doing 10 percent
better that was forecasted. The coffee shop had 8 regular
groups, organizations, and associations holding weekly meetings
in the coffee shop. I got permission from the clients who are
using the coffee shop for meetings to use there names in the
next set of ads that will run, and on the new web site. You must
promote your success to get new business.