Friday, December 12, 2014

Coast to Coast Craft Coffee Drives Success

Ready-2-Eat and Heat-N-Eat fresh prepared food aka Grocerant Niche retail is booming in every sector of retail today. Companies the ilk of Nordstrom’s, Macy’s, Lord and Taylor are joined by the likes of Walgreens, Pinkies Liquor stores, Wawa, Sheetz and even some Home Depot’s selling Ready-2-Eat and Heat-N-Eat fresh prepared food with customized mix and match options.

One of the fastest growing sectors of retail today just may be the coffee sector.  The ability of a craft coffee house to sell both fresh Ready-2-Drink and Heat-N-Drink product simultaneously places the craft roaster unique sustainable position to compete equally with the likes of Seattle’s, Starbuck’s, San Francisco’s Pete’s Coffee, Minneapolis Caribou Coffee and Orlando’s Barnie’s Coffee Kitchen.  Most important it places them in the center of the Grocerant Niche battling for share of stomach and winning. 

Craft coffee houses here in the Northwest are thriving while seemingly on every other block.  Which makes them seemingly just a block away from the nearest Starbucks, yet they are thriving.  The personal touch customer can receive from small-batch roaster ranges from the consistent smile and hello at the door, the full aroma emitting from the roaster as the beans reach that perfect temperature, to personalized customized roasting for home or office (a private label blend). 

The ability of start-ups like Jose Estorino's Orlando, FL Javatino, selling coffee beans and ground coffee simultaneously provides incremental point of purchase profit.  Here is the crux of how the grocerant niche provides retailers an advantage; they either sell the cup of coffee and a bag of beans, or a bag of beans and a cup of coffee, the craft coffee house wins either way with an incremental sale.  Driving top line sales and bottom line profits.  

Starbucks started out selling a cup of coffee.  Then Starbucks sold a coffee cup, a cup for coffee, coffee machines, and bags of coffee To-Go.  While most legacy coffee shops / chain restaurants of the day capitulated market share, some went out of business, others are now considered restaurants. 

Starbucks on the other hand became an Omni-channel retailer. They grew, and grew, all while driving top line sales and bottom line profits.  Today, Starbucks continues driving growth adding products not subtracting them and this time its fresh food including fresh food delivery. 

Craft coffee is not limited to just local, sustainable business. San Francisco-based Blue Bottle, continues to drive growth and is now expanding its online sales with a new $25.75 million round of funding.  In every retail sector, mix and match meal component bundling can drive continued top line sales growth and bottom line profits.  Is your company ready for a Grocerant Score Card? Fresh food fuels sales success. 

Are you trapped doing what you have always done and doing it the same way?  Interested in learning how Foodservice Solutions 5P’s of Food Marketing can edify your retail food brand while creating a platform for consumer convenient meal participationdifferentiation and individualization? Email us at: or visit: for more information.

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