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.
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.
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.
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 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 700 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.
