Coffee Shop 101 – Lessons Learned

It is often said that if you want a successful business, do what other successful businesses have done. There are so many coffee chains around, so this must ring true. Here we learn lessons from one of the most successful coffee shop chains of all time.

In 1971 Starbucks Coffee opened in Seattle, Washington. Owners were content with a small but steady traditional business, until Howard Schultz vacationed in Italy. He vowed to bring the Italian coffee bar concept to the U.S.A. From there, one narrow storefront somehow evolved into over 17,000 stores world wide. Howard Shultz re-invented coffee and created a sensational new product from a tired old industry.

Lesson 1: Dump the stale coffee, and the stale coffee image!
Before Starbucks, coffee was going in a really bad direction. Instant coffee was still very popular for home use. Most restaurants got their ground coffee from a can, and because there was little demand in many areas it tended to go stale. Some people enjoyed coffee at the office, because it was kind of pushed by employers, but in general the market was fading. It was considered a somewhat medicinal pick-me-up, and certainly not a fun drink. It was also strictly for adults, and kids did not find the look or flavor inviting anyway.

How did Howard Schultz turn coffee into something wildly marketable? He dumped the stale coffee! He dumped the stale coffee image, and the stale old attitudes about coffee, and created something that hardly resembles the traditional, humble beverage! He dumped the stale atmosphere of traditional coffee shops, and brought coffee into the 21st century. He found a way to appeal to a new generation, which probably would never have liked coffee if it were not for Starbucks. Howard repackaged an existing product once reserved for adults into something trendy and marketable to young people.

How can we use this first and most important lesson?
Never let your image go stale. Stay fresh trendy and new. Today, with flavored coffee stands so common, it is easy to loose out in the competition. Many of the coffee stands are falling into the tired old habits of coffee in decades past. Don’t let your Coffee go stale, either literally or figuratively. Keep it fresh! Keep yourself fresh! Nothing scares off business like a tired, grumpy shop keeper types. Make sure the coffee and pastries taste and smell fresh, and keep the atmosphere lively and fun. Never ever forget the fun!

Tips on Staying Fresh
1. Staff adequately so that no one is overworked.
2. Create a welcoming environment to encourage people to stay a while.
3. Marketing tips for your cafe or coffee shop can include techniques, like specials, promotional T-shirts, and even branded products for sale that make an impression and build your reputation.
4. Network within the community to attract groups to meet at your Coffee shop.
5. Have ample seating, and if your place is small consider sidewalk seating.

Lesson 2: Focus on Appearance, Taste and Quality Control
Starbucks revolutionised the coffee market by inventing Coffee that tastes good and also looks pretty! He created different flavors and colors, and topped them with whipped cream and chocolate shaving sprinkles. The sweetness of the typical Starbucks coffee drink has a universal appeal which attracts the child in us all. Frozen and iced coffee, especially in the summer can be very refreshing.

How can we use the Second Lesson?
Always insure that every single drink you make is tasty, well presented and up to the same standard of quality every single time you serve it. It’s one thing to invent a prototype for a cool new drink. It is quite another to reproduce that drink, day in and day out no matter who is behind the counter. Consistency in flavor must be trained into employees and reinforced with frequent reminders. Insure freshness, and stress to employees that it’s better to throw out a questionable drink and start over, than it is for the customer to be unhappy with it.

Tips on Flavor and Appearance
1. Taste test frequently and in a sanitary manner.
2. Be an artist of flavor and design, and make sure every employee can make these drinks to perfection.
3. Post recipes behind the counter so that employees can refresh their memories, and function through moments of forgetfulness or confusion.
4. Make sure the pastries are fresh. Stock only best sellers. If something’s not selling take it off the display and do not order it again.
5. Offer a variety of flavors and sizes.
6. Make sure your cups and any other disposable plastic ware are attractive, and if affordable, have your logo on them. If you can’t afford imprinted cups, consider custom adhesive labels for the outside of the cups, and to use as a seal on wrapped pastries.

Lesson 3: Utilize Technology and Enhance Convenience
Wi-Fi – Starbucks has Wi-Fi connections and is an internet café in addition to being a coffee house. Multipurpose businesses strengthen their client base and increase demand for their services. Wi-Fi isn’t that expensive so why not?
Drive Through – Some Starbucks locations also feature drive through service. This is also a great idea if you have the right location for it. Anything that adds to convenience makes your shop more popular.
The Right Equipment – It’s great to have time to sit around at a coffee shop, but some people don’t have that luxury. Make sure your service is timely. Use the right equipment to get the job done quickly and efficiently.
Web Presence – Starbucks also advertises almost exclusively on internet and at point of sale. This saves on the budget, and also it’s something any coffee shop can do. Unlike the fast food market they aren’t barraging the public with TV commercials. That is amazingly fair to other coffee shops, because most coffee shops can’t afford a TV advertising budget. It’s easy and affordable to put up a website. Make sure your URL is posted at your shop, and displayed on every single item that leaves your shop. Incorporate it into your logo, and put it on your imprinted labels and cups.

Lesson 4: Diversity: Something for Everyone
Starbucks has diversity in their mission statement, and it is a very active goal of their business. Diversity includes many facets, including a variety of drinks for every taste, involvement in community and charity, and catering to the dietary needs of their clients.
Involvement – They get involved in community activities even though they are a multinational corporation. They build green energy buildings in some of their locations now and they are get involved in national, international and local fund raisers, and causes.
Dietary Concerns – Starbucks offers drinks for dieters, and diabetics. They have low calorie drinks, and sugarless drinks so that no one has to feel left out.
Assortments of Flavours – Starbucks tries to create drinks that will appeal to everyone. They offer a wide variety of products and provide for a multi-national taste in every store.

Applying Lesson 4 to Your Shop
1. Get involved in the community. Promote your product by sponsoring local causes and events. Invite clubs to meet at your establishment. Develop a close relationship with local colleges and high schools in your area. Market to nearby businesses, and perhaps offer a delivery service to businesses with a large number of employees.
2. Provide drinks for dieters and diabetics. Make sure they are tasty even though they may be sugar free, low calorie, or low carbohydrate.
3. Have a wide variety of flavors that appeal to every taste.

Lesson 5: Develop a Standard and a Culture around your Business
Starbucks has its own system of ethics, its own culture and its own standards of business conduct booklet for all its partners and their employees. Setting a standard for business ethics is absolutely necessary, but a vastly overlooked policy in smaller businesses. Creating a standard of excellence, service, and fairness to employees, is the key to quality control over time. Writing it all down, in an orderly fashion, from recipes to employee guidelines on customer complaints keeps everyone on the same page, and leaves nothing to chance. Establishing policies towards employees insures fairness, and prevents unconscious favouritism. This leads to increased employee satisfaction and as a result much better service.

Applying Lesson 5
Create a booklet to set the standards of your coffee shop. Proof-read it carefully and give it a lot of thought. Then distribute the document to your employees. Make at least portions of it viewable on your website. Creating a standard where everyone knows what is expected of them, makes operating a business much easier. Starbucks outlines everything in their company policies. You can even see their work online. Use it for a model for your own business. Here are some Points to Cover:
1. Post your recipes so that employees have a copy
2. Establish standards to deal with complaints and common problems.
3. Establish a standard procedure for taking orders and receiving money.
4. Establish rules about employee benefits, sick days and holidays.
5. Establish pay standards.
6. Establish a standard of fair and ethical treatment of customers, employees and owners, so that everything is outlined.

By following the Starbucks example it is possible to have a great coffee shop, avoid a lot of difficulties, and always serve a consistent quality of product. Using Starbucks as a model is a great idea for any business, but especially a coffee shop. Starbucks started where you are now, in one building, with one set of staff. They have not done anything that you cannot do. If you start with a good plan, and use a little business  creativity you will soon have a thriving coffee shop and perhaps one day you too will own multiple locations and set the standard in the field.

related pages: protecting your hard work and merchandising efforts with coffee shop insurance,
How to create a queue – tips on merchandising and your coffee shop