Will a Coffee Station at My Convenience Store Boost Business?

It’s dark, it’s cold and your customers are only half awake. In the early morning hours, the likelihood they’re walking into your convenience store to examine the layout, to explore how many choices of candy bars you have or to taste some of your hot dogs is very remote.

It would be wise to assume that customers are braving the elements — in the early morning — to get some coffee.

We at Schubert Equipment Sales are here to guide you through the mental confusion of the early morning American brain — on the way to gainful employment — and trends in coffee consumption.

Coffee Drinking Continues to Grow in Popularity

According to the National Coffee Association, one trend continues to point upward for consumption of gourmet coffee. More than a third of Americans consume gourmet coffee every day, which is up 3 percent from last year.

The consumption of expresso-based beverages also rose, from 13 to 18 percent. The biggest group of gourmet coffee consumers are between the ages of 25 and 39.

Hold onto your cup. We’re getting ready to pour you some more statistics on trends. Nearly two-thirds of Americans drink more coffee than soda.

If you don’t serve coffee in your convenience store, now might be a good time to reconsider. Coffee sales in the United States rose by more than 11 percent in 2013 to $11.7 billion. Single cups retail sales — that’s where convenience stores enter the caffeinated picture — soared by more than 210 percent to $3.1 billion.

Do we need to go into more detail about trends in coffee sales? You can smell consumer demand in the air.

According to Convenience Store Decisions, the top priority of convenience store owners contemplating expanding their facilities to accommodate the growing coffee demand is space.

“The biggest issue is that retailers don’t build coffee space for volume. Coffee is a very time-intense business. It all happens in relatively short period of time,” said Steven Montgomery, principal of b2b Solutions LLC in Lake Forest, Illinois, to Convenience Store Decisions.

Jerry Weiner, vice president of food service for Rutter’s Farm Stores in York, Pennsylvania, told Convenience Store Decisions: “I think the key is the same as all foodservice programs: freshness, quality and price value. We will never be able to create the experience of a Starbucks. However, we certainly can deliver equal quality products and for a lower retail. It doesn’t need to be really cheap, but it needs to be less expensive and high quality, which will get you price value.”

What Do the Competitors Serve?

Business experts say the best way to plan your coffee offerings is to examine the competition. How much do they charge then gauge your prices accordingly.

Another top consideration is your variety. While large-chain retail coffee sellers, like Starbucks, offer a wide selection of coffee styles and tastes, convenience stories need to simplify. Lean to the Keep It Simple, Stupid side of the equation. Remember, many coffee consumers at convenience stores aren’t coming for the fancy-pants $10 designer tastes, they want easy choices — especially at the start of the day. They want something quick, easy and tasty.

Which leads to water quality. You may have the best tasting coffee, the most expensive brands, the finest and sweetest additives, and end up with something sour tasting. And, despite being early risers firing sometimes several cylinders short , coffee drinkers don’t tend to forget — or forgive. One yucky cup of coffee at your store can change their buying habits for a long time. Focus on possible traces of lime or rust in your water and use a water filter if necessary. Doubling up on the less-obvious elements on the process may pay big

Are you thinking of expanding your convenience store? Do you have some tips of your own? We’d like to hear your comments. We have a wide variety of products that will make your convenience store the talk of the town Check out our products page or fill out our contact form.