• Research & Trends
    Foodservice Sales Consumer Research Menu Trends Industry Statistics
  • Food
    Food Focus Recipes Healthy Eating Local/Organic
  • Beverages
    Wines Beer Spirits Coffee & Tea Non-Alcoholic Beverages Recipes
  • Marketing
    Marketing Basics Branding Menu Design Social Media Customer Database Holiday Ideas
  • Operations
    Back of House Front of House POS Food Safety Design Sustainability Crisis Management Workplace Safety Supplier Relations Operations Manual
  • Staffing
    Job Board Temporary Foreign Workers Wages & Salaries Training HR Systems Recruitment & Retention
  • Business & Finance
    Menu Costing Accounting Business Plans Success Stories Budgeting/Cost Control Insurance Restaurant Valuation Growth & Acquisition Exit Strategy
  • Laws & Regulations
    Taxation Minimum Wage Employment/Labour Standards Health and Safety Workers' Compensation Beverage Alcohol Health Inspection Gratuities Environment Permits and Licences Ask CRFA
 
Hcareers
Restaurant Central Poll
Q. Is your restaurant planning a Mother’s Day promotion?

  Go 

Boosting profits with coffee and tea
By Sandra Eagle
October 11, 2011

 

Email
Leave a comment
   

 

boost profit with coffee and tea

For most of us, the ubiquitous cup of coffee is the first thing we reach for to help us start the day. Whether you are firmly based in the coffee or tea camp, something hot and caffeinated is the proverbial jumpstart to get Canadians moving in the morning.

Linda Strachan, director, foodservice with NPD Group, based in Toronto, says, “Canadians love their coffee. While carbonated soft drinks rule in the U.S., Canadians order coffee, which is included in 31 per cent of all meals or snacks sourced from foodservice outlets.”

Canadians ordered nearly two billion cups of hot coffee in the past year ending May 2011 -- the vast majority being brewed coffee. Espresso-based beverages make up about 10 per cent of the total, with just over 200 million servings annually, according to NPD Group.

Rise and shine

More than half of all coffee servings are consumed in the morning. There's been a lot of innovation and promotional activity around breakfast by some of the major QSR players in the past year, so that has supported coffee growth of three per cent at QSR.

And it’s the Canadian love affair with specialty coffee that’s fueling that demand. Who would have thought that a specialty coffee, once the domain of talented baristas frothing milk for cups of cappuccino, lovingly brewed and artfully decorated with swirls and heart shapes, would be coming to a McCafé near you? The coffee culture of the West Coast has made the transition from the indie cafés to the mass market.
 

 

The coffee market is basically segmented into traditional versus specialty. Rino Carbone, sales director for Club Coffee, based in Toronto, says the overall coffee market is pretty well flat with more coffee drinkers choosing the specialty coffees such at lattes, cappuccinos, iced coffee and espresso. He says this market has been growing over the last three years.

“Traditional coffee is down from last year but more coffee drinkers are choosing specialty coffee," says Carbone. "There is a trend toward choosing a quality bean. This is achieved with heavier weights, as well as switching to high-grown specialty varietals. Higher grown coffees are more flavorful with more complex tastes resulting from more ideal growing conditions. Although medium roast is still the dominant roast color preference, medium dark to dark is steadily gaining.”
 

More than a complement

One way to boost sales is to look at coffee as something more than just a companion to dessert at the end of a meal. More and more, the brand of coffee you serve matters to your customer.

Strachan says, “Interestingly, at full service restaurants, a well known brand may be a good consumer cue to promote a better coffee offering. Among customers who are familiar with the coffee programs offered at FSR, four in 10 (43 per cent) would be more likely to order coffee if they served a well-known brand of coffee.”

Joe Di Donato, vice president of operations for Faema Canada based in Toronto says, “A lot of time, restaurateurs say ‘it’s just a coffee, it’s not our main part of the business, and it’s just something you offer with a dessert.’ The restaurants don’t invest in a good quality coffee bean, and they don’t do the little things to make sure the machine is properly maintained, or give the extra training to their staff. So at the end of the meal, instead of completing the experience by serving a great espresso or cappuccino, customers end up having a great meal and ending with a horrible coffee. What’s left in the customer’s memory is the last coffee they had, so that everything they worked on that got that customer happy with their meal, they lose with the coffee.”

But Di Donato has a solution to that. “Now that specialty coffee has become mainstream, and offered in every type of restaurant, it’s time that the staff of restaurants is properly trained in coffee service.” At Faema’s new warehouse recently opened in Mississauga, restaurant staff can train for a couple of hours or whatever time they can spare. Staff can get proper training on the correct way to make an espresso, cappuccino and latte art, and learn about the importance of minor maintenance, keeping the machine in tip-top shape in order to offer a good product.

“We also have a coffee academy where we explain where the coffee bean originates and the process of the roasting,” says Di Donato. “At least that employee will understand more about the culture of coffee and when they go back to their restaurant, they can actually do a proper job in giving a great coffee to the customer.”

Opportunity abounds for tea

That sentiment is echoed by Louise Roberge, but in a related industry segment. As president of the Tea Association of Canada, she has some new groundbreaking research from the NPD Group that shows plenty of opportunity to improve the restaurant experience for tea lovers.  

“Tea is not served properly in foodservice and for 45 per cent of tea drinkers it’s not even top of mind for them to consider ordering tea," says Roberge. "In fact, 31 per cent of those tea drinkers opt for tap water instead.”  So if you could get 30 tables ordering a tea instead of tap water, just multiply those dollars seven days a week for a whole year. That’s a lot of money left on the table.

Hot tea totals 380 million servings annually in Canada, while iced tea accounts for an additional 206 million. Contrasting with coffee, only 35 per cent of hot tea is consumed in the morning. It is more likely to be chosen as an afternoon pick-me-up, or to accompany meals. Tea also skews to an older consumer than coffee.
 
The good news is, tea drinkers are willing to pay for a good cuppa, if they could just get it. Roberge adds, “The research shows us that the consumer is prepared to pay between $2.00 to $2.50 for a cup of Orange Pekoe, but by just changing the tea to English Breakfast, they would be prepared to pay between $2.63 and $3.15 - and that is not even talking about serving it in a proper tea pot, and preparing it properly. That was just asking what consumers would be prepared to pay. And I’m not even thinking about what [operators] could be serving to go along with that tea. When you sit down with a cup of tea, you are more likely to purchase something else to go with it, than coffee. So there’s a good story for foodservice.” Roberge is determined to spread the news that her association is ready, willing and able to assist foodservice in improving their tea service.

The formula to keep tea lovers happy is pretty simple:  Serve tea in a china teapot, with a good quality product, freshly brewed with boiling water. For more tea tips visit the Tea Association of Canada website at:  www.tea.ca

Tea teaser

Recently completed research by the NPD Group for the Tea Association of Canada shows that:

  • 68 per cent of Canadians drink black tea
  • Green tea  and flavoured green teas are rapidly gaining in popularity
  • Herbal tea (although not technically a tea from the Camellia sinensis plant) is preferred by  37 per cent of consumers  
  • 64 per cent of consumers use a sweetener such as white or raw sugar with their tea, although honey is the preference of 34 per cent of  consumers
  • 37 per cent prefer the bag in when they are served tea, 29 per cent want loose whole leaf tea, and bag out (of the teapot) was the preference of 23 per cent of consumers.
 
 
 
< Back  
 
Copyright © Restaurant Central. All rights reserved.  

 

Google
Search our site
CRFA
MediaEdge Branding
Privacy Policy
Register   |   Login