Four Strategies to Increase Coffee Shop Profits

Wondering how to increase coffee shop profits? It’s been a rough couple of years for many small businesses, with a pandemic seriously affecting consumers’ buying habits. Still, coffee shops with drive-thru models and additional revenue streams, including merchandise sales, actually saw a boost in their bottom line. Scooter’s Coffee saw over a 24% increase last year alone, with a net profit margin of over 26%, proving that convenient coffee shops are still going strong and show no signs of slowing down. Here are several ways to increase coffee shop profits aside from pouring a hot cup of joe.

MAKE IT CONVENIENT

Convenience is critical these days. Most food and beverage chains have jumped on the curbside pickup bandwagon post-pandemic. People have become accustomed to quick curbside service requiring minimal effort. The days of circling the parking lot, ordering at the counter, and standing in line to pay are quickly dwindling.

Consumers are looking for time-saving services that can deliver on a dime so that they can get back to their day. Multi-tasking has become the norm in the digital age, so whenever shop owners can offer high-quality products that are easily accessible, it’s a winning combination that positively affects coffee shop revenue.

TRY A SMALLER SIZE

When it comes to operating costs, building size does matter! Investing in a smaller shop automatically decreases the overhead and improves customer service through fewer contact points.

Scooter’s Coffee’s 664-square-foot drive-thru kiosk is roughly half the size of a traditional coffee house, making it much less costly to staff and operate. On average, you’ll need six employees. Also, since there is no seating inside, there is only one point of customer contact, making it easier to build stronger relationships with your customers.

The kiosk model is an excellent option for potential investors with a tighter budget who are looking to start small. The drive-thru serves specialty drinks, pastries, and breakfast burritos, which Scooter’s Coffee is known for. Also, this bite-sized drive-thru can be tailored for special locations, including small towns. And because Scooter’s is a proven franchise, you won’t have to come up with your own financial plan.

DIVERSIFY SALES

  • Pre-packaged goods & merch. Besides our delicious brews and tasty food, franchisees can boost sales by diversifying their revenue streams. Think about how your kids grab a bag of candy at the grocery store checkout. Those treats are strategically placed to optimize the chances of being scooped up. Offering pre-packaged coffee and merchandise is based on the same idea. Our 100% Arabica coffee can be enjoyed at home when folks can’t make it to the store. We love that idea because customers are accustomed to our brew and won’t have to go a day without it.
  • Gift cards. Gift cards are an inexpensive way to bring in additional revenue. There is no need to add anything in-store. These easy-to-grab cards also pair well with the convenience of your drive-thru when buyers are in a mad rush to purchase that last-minute gift!
  • Catering. Catering events can reap significant benefits. This option is perfect for smaller stores like our drive-thru kiosk because customers getting their orders to go or having them delivered. Large orders can ring up significant coffee shop profits, so it’s best to think about how you can serve larger groups like corporations, colleges, or other organizations.

STAY UP ON TRENDS

It’s essential to read industry blogs and magazines to stay updated on what’s happening within the coffee industry. Here, you will find what’s impacting consumers and how you can serve them better. Also, connecting with social media influencers and networking online with other industry pros can keep you in the loop of what’s buzzing in the media.

SCOOTER’S COFFEE: A WINNING COFFEE SHOP CONCEPT

Scooter’s Coffee has seen rapid growth within the past 24 months by incorporating several of these strategies. We opened our 300th store at the end of 2020, during the height of the pandemic. The following year we opened an additional 100 stores. Scooter’s Coffee now has over 400 locations and is on track to have 1,000 by the end of 2024. Between the kiosk storefront business model and the need for convenient fresh coffee and treats, franchisees are able to capitalize on their investment.

Request information today to learn more about starting your own drive-thru coffee franchise.

Request Franchise Information

    By requesting information, you agree that Scooter's Coffee may call and/or text you about your inquiry, which may involve the use of automated means. You do not need to consent as a condition of any purchase, and you can revoke consent at any time. You also agree to our Privacy Policy.