6 Must-Haves for Coffee Success in C-Stores

As coffee customer expectations rise, retailers must adjust their offerings, increase innovation and ensure the basics are right every time.

A quality coffee program is crucial to the success of c-store foodservice. It always has been and always will be, but the coffee category at c-stores is also changing as customers’ expectations of what constitutes a quality cup of coffee continues to evolve.

Drip coffee used to be the big driver of the convenience store coffee business, and value was the offering’s primary appeal. The product was inexpensive and the cup was large. Iced coffee may have been available, but the standards for iced coffee were traditionally low. Convenience alone drove the iced-coffee business.

But customer expectations have now shifted, and c-stores have upgraded their coffee programs to meet rising demands. Quality tops the list of what customers are seeking, and expectations for what quality coffee entails are higher than ever. A quality cup of coffee not only drives customer trip frequency, but it provides an avenue to add incremental business while the shopper is on-site.

What does coffee business look like today?

• Drip Coffee 15-20%

• Espresso-Based Drinks 35-50%

• Cold Brew 5-10%

• Iced Coffee/Espresso 5-15%

• Tea/Chai/Other Beverages 5-10%

• Other Specialty Blended Drinks 5-10%

How does your program compare?

As retailers work to upgrade their coffee offerings to compete in today’s market, here are six important components that every successful coffee program should incorporate.

1. Great-tasting and fresh coffee and tea. Most competitors serve coffee and tea. Consumers have a lot of options, and they are creatures of habit. Once they commit to being your customer, it then becomes your responsibility as the operator to make sure their expectations are met.

For drip coffee, peak flavor lasts 30-60 minutes, and coffee should be disposed of within two hours. A bean-to-cup machine is the best quality option. Otherwise, a decision must be made as to what the brew capacity should be. Clearly a medium roast will sell better than decaf. Iced coffee is not old coffee that is refrigerated. Iced coffee requires more coffee than standard coffee because the ice waters it down.

The operator must also train their team well. Brewing coffee and producing espresso drinks is not as simple as it looks. One cup of coffee with coffee grinds in it, or an espresso drink that is virtually all milk, could become reason a customer decides not to return to your establishment.

2. Strong merchandising. A guest that comes into a convenience store should not have to look for the coffee station. There must be clear signage. At the same time, the station should be kept impeccably clean and organized. Running out of cups, milk, sugar, stirrers, napkins or lids is unacceptable. There must be signage with clear pricing and, if equipment is self-serve, there should be clear directions. During peak periods, a team member should be assigned to the coffee station to assist guests.

If there is a pickup station, it should be highly visible. If there is a made-to- order espresso station, it should be easy to navigate. Merchandising the coffee station should be different during non-peak periods, where the focus is on iced coffee/espresso, cold brew and other more indulgent beverages.

3. Quality bakery and breakfast menu. Having a great coffee program with an inferior bakery program will immediately call into question the standards of the retail brand.

When you walk into a quality convenience store, you should smell coffee and bakery. It is not necessary to bake most items, but having a scoop-and-bake program on staple items, such as blueberry muffins, will provide clear differentiation to the competition. You can add additional fruit to the batter and customize the topping, such as streusel.

The consumer does not want to get their coffee in one place and their bakery product or sandwich somewhere else. Ready-to-use makes it easier for the operator but will not result in the loyalty that you seek from your customers.

4. Variety that appeals to all age groups. Overall, consumers are willing to pay for beverages, but it is clear what they want varies considerably by demographic and age groups.

First and foremost, don’t assume that everyone likes what you like. Next, the basics must be perfected. If you are serving coffee, the standard drip, iced, espresso and cold brew must be memorable.

There must be options to customize beverages. Different milk varieties, syrups, high-protein add-ons, energy alternatives and specialty limited time coffee options must be considered. Some like their coffee the same way every day while others are looking to change it up.

A great coffee program satisfies both needs.

5. A combo program that differentiates. Virtually every combo meal in foodservice ends with a drip coffee or fountain beverage. Clearly the cost of the beverage helps defray some of the cost in order to provide a lower-cost value meal. The question is whether many consumers see more value in a combo meal that has more enticing components. Based upon changes in consumer preferences, iced coffee/espresso beverages, cold brews, hot espresso beverages or seasonal beverages with pumpkin or other flavors could drive additional revenue and satisfy the consumer’s craving for different options.

6. A focus on multiple dayparts to drive a greater revenue stream. Coffee is no longer just the early morning caffeine boost.

Consumers love coffee and want it throughout the day, but what they crave will vary based upon the time of day, the weather, what is being offered as specials and much more. How about a pumpkin iced latte combined with a fresh baked pumpkin cookie or a vanilla sweet-cream cold brew? How about lavender-honey matcha as a change of pace?

An afternoon or nighttime pick-me-up does not have to be a cup of drip coffee. It can be an innovative and sometimes indulgent offering that brings the consumer back more often.

Bruce Reinstein is a senior partner with Kinetic12, a Chicago-based foodservice and general management consulting firm. The firm works with leading foodservice operators, suppliers and organizations on customized strategic initiatives as well as guiding multiple collaborative forums and best practice projects. They also engage as keynote speakers at operator franchise conferences and supplier sales meetings.