It’s time for action, according to Richard Bettles, Wholesale Manager of Pablo & Rusty’s. Amid the challenges currently facing Australian cafés, he shares his 11 tips to boost customers and revenue.
1. Focus on experience
Customers don’t just come for a cheap cup of coffee: they come for the experience. The ritual, the social interaction, and the atmosphere. Keep it personal: invest in customer service and create an inviting environment. People value experiences over transactions.
2. Adjust your prices
Coffee prices need to rise. They need to be around $6.50 for global parity. A specialty flat white should be $5 at a minimum, moving toward $5.50 in the future. Small, consistent price increases are necessary to sustain margins. Many customers will continue to support you.
3. Get ready for summer
Prepare for summer by expanding cold beverage offerings. Introduce iced coffee variations, ready-to-drink options, and refreshing mocktails, and try out salads, specials, and small bites. These can appeal to customers looking to cool down and try something new.
4. Create value beyond price
Value isn’t just about low prices. Offer smaller portions. For example, half sandwiches or mini treats for budget-conscious customers and to upsell. Create bundles like a coffee and a toastie combo, and t ry offering specials or takeaway offers during slower hours to attract regulars back.
5. Embrace, indulge, and experience
Customers aren’t always looking for value, sometimes they want to indulge. Add premium options such as signature drinks, special coffees (think pour-over, mocktails, rare coffees), or unique dishes. Special experiences create memorable moments and give customers a reason to return when they feel like splurging.
Remember that your specialty coffee partner is a great resource for business as well as coffee support. At Pablo & Rusty’s, each of our partners has access to a business specialist and a coffee specialist. The business specialist can help you with all things business-related. The coffee specialist is your go-to person for coffee ideas, quality, training, and everything in between.
6. Upgrade your equipment
Look at innovations that can save time and reduce waste. Grind-by-weight grinders, milk systems, and telemetry set-ups can increase efficiency, improve quality, and minimise waste. These upgrades help handle peak times smoothly.
7. Eliminate the unnecessary
Eliminate anything that doesn’t add value. Whether it’s low-selling menu items, inefficient processes, or apps you don’t need – cut the fat. This will free up time for what truly matters: improving the customer experience.
Regularly renegotiate your energy contracts and shop for better rates. Use energy-efficient appliances and consider timers or energy-saving modes to reduce costs without impacting operations.
Lastly, be guided by data. You should have a good handle on what’s selling and what’s not, and know your cost of goods, wages, and profitability.
8. Fight waste
Waste is terrible at multiple levels. It’s bad for the planet and it’s bad for your profit. Equipment upgrades can help. However, the place to start is to monitor and record waste, whether it’s ingredients that have expired or pastries that have gone stale. Keep an eye on wasted milk and plates coming back not empty. Once you start recording the waste, focus on the biggest areas first. Even reducing waste by 25 per cent annually will lead to thousands of dollars over the year.
9. Build a flexible team
All-rounders are the future of hospitality. Team members who can do multiple tasks such as taking orders, making coffee, and serving food can bring agility to your team. This allows you to adjust to busy and slow periods with ease. Every member of your team has a role to play in customer experience and marketing. You should have an ongoing program to train each team member in more than one area.
10. Lean into marketing
You should be running a marketing activity at least once a month. While word of mouth is key, even the best cafés need to spread the word. Make sure your specials are visible, retail shelves are tidy and labelled, and staff know how to upsell to the right customers.
To attract new faces, try handing out flyers, visiting local offices, boosting social media posts, and using geo-targeted ads to reach potential customers online.
11. Talk to your landlord
Rent is one of the biggest fixed costs for cafés. If your lease renewal is coming up, it’s time to reassess the situation, especially if you’re in an area where foot traffic is still down post-COVID. Many CBDs haven’t fully bounced back, yet rents may have risen. Negotiate fairly based on current conditions. Even if you’re not due for renewal, it’s worth having a conversation with your landlord as some may be open to discussing terms.
Content originally published on the Pablo & Rusty’s website. For more information, click here.
