Wednesday, October 17, 2012

Coffee is king when it comes to driving customer frequency.



Non-traditional fresh food retailers continue to leverage coffee to build top line sales and bottom line profits.  When it comes to finding success within the non-traditional fresh food space no sector has done it better than the convenience store sector.  Coffee has been the C-store sectors secret weapon.

Coffee is the “top planned c-store purchase” according to a study by Willard Bishop Consulting.  In fact the same study found “Ninety-six percent of coffee buyers know they are going to buy a cup of coffee when they enter the store, and more than two-thirds of customers buying coffee at c-stores do so four or more times per week”.  Coffee’s seasonal product flexibility is a perfect conduit for LTO’s.

Here are some examples of LTO’s running this fall within the C-store sector as reported by C-store news:
“7-Eleven Inc.’s fourth annual 7-Election Presidential Coffee Cup Poll, which lets customers vote by picking a blue donkey- or red elephant-themed cup, is in full swing. Meanwhile, Pumpkin Spice coffee has returned to Wawa Inc.'s stores, while Pumpkin Spice cappuccino is wooing The Pantry's Kangaroo Express customers through this fall. And promotions aren’t limited to a single season.

Kangaroo Express is also enticing java lovers with its Roo Mug, a reusable Bean Street Coffee mug that debuted Oct. 3 and retails for $1.69 — the same price as an extra-large coffee. The first fill is free and refills are just 99 cents. Customers can build their own brew and share it with Facebook friends at www.beanstreetcoffee.com. Those who join The Roo Club can save even more by texting “ROOCLUB” to “THEROO” for deals like 49-cent coffee and free refill days.”

Starbucks, Burger King, Subway and McDonalds all have up graded coffee programs, like the C-store sector they all want to  bundle coffee as a differentiator too drive sale within in the AM day part or for the fourth meal day part.  Coffee is King and a frequency building tool all year long. 
Steven Johnson, Grocerant Guru at Tacoma, Washington based Foodservice Solutions® has been gathering retail food success clues.  Have you lost customers?  Do you want to know how to get them back? Have you heard of the: 65 Inch HDTV Syndrome? Contact: grocerant@q.com for success clues.

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