Hi there Cafe people.
With all the doom and gloom surrounding us in the news, it is time we had a good hard look at where cafes sit in the economy, and what likely ‘hits’ we are likely to take. We should also consider what opportunities this presents us, and what changes we need to make to what we do and how we do it.
The big ticket items that consumers have madly purchased on credit for the past 7 - 10 years are loosing their appeal. The Plasma screens, the new white goods, furniture and the like are now well and truly off the agenda for most Australians right now. With superannuation balances falling, and property prices following slowly in the same direction, Australians are looking at their nett worth diminishing, and an uncertain economic future.
Fortunately, there remains a strong interest in the ’small reward’. Our business, the Alchemy Cordial company had a stand at the recent Good Food and Wine show in Brisbane. It was very busy! loads of people who we spoke to said that they were looking for smaller, high quality tastes and food and beverage experiences, instead of big expensive toys or stuff.
This means that you, in your cafe should have a careful look at what you are offering, and how you are treating your customers. You should plan to make friends with the people who come to see you, and you should ensure that the quality of what you offer them, is both high and consistent.
People will come to cafes, even if it is to complain about how much of their super they have lost. Your opportunity is to provide for them, a great food and drink option, excellent service, and make sure that you do this profitably for yourself.
This is a time that will reward well run businesses, and whilst many industry experts are tipping that up to 5% of cafes will close in 2009, there is much that you can do to ensure that you are not one of the casualties.
1. Upsell. instead of giving away sugar, suggest a shot of syrup. Turn your expense, into a 20% add on.
2. Create meal deals, and advertise them. Why not make a signature drink and cake offer? print it out and put it on your counter. You will be amazed at the result.
3. Offer customers a larger size of drink ” whould you like that in a mug?” makes you an extra 20%!
4. Throughout Summer, offer High margin Ice blended drinks ( Frappes). Have a look at some earlier posts for recipes, and how to make them.
5. Review your costs. If it is hard to make extra sales, look at the expenses side of your business. Are there better ways to buy your requirements? Note, there is a difference between expenses, and investments.
6. What are you doing to market yourself? What activities are you doing to attract new customers through your door? what are you doing to reward your regulars ( or even to acknowlege them?).
If you get on top of these 6 simple step, you will be well on the way to recession proofing your business.
For more info, or some direct assitance with your cafe, drop me a line at michael@alchemycordial.com.au and I will be delighted to assist.
Cordially Yours.
Michael Bishop.
Founder.
Master Blender.
Alchemy Cordial Company