What's the secret to a succesful coffee shop.

There is no one secret to a successful coffee shop; in fact, most secrets in business boil down to either hard work, extensive experience, or luck or a combination of all three. I have taken success for this post to mean financially sustainable with an appropriate ROI for the owner, which means not necessarily giving the customer everything they would wish for.

1. Consistently serving the finest espresso – It is rare in business to discover a product where consistently offering 100% quality is the best commercial decision you can make. In fact, I am the greatest advocate for the 80% is perfect model. But espresso coffee is one of those rare products where consistent 100% quality matters. Customers will walk past ten other competitors to get the best espresso, which is why this factor alone means you don’t need the highly visible, most expensive location. So buy the best espresso coffee machine (3/4 group Italian made with e61 group heads and set to the right pump and temperature levels), install it with a water purifier and demineralizer, use a conical grinder, and only buy top quality Arabica or Arabica 90%/Robusta 10% freshly roasted beans, and make sure every cup is made by a fully trained barista who is continually seeking the ‘god shot.’

2. Ergonomics is vital – Make sure the coffee workstation and layout is such that the barista hardly moves their feet in performing all their coffee making duties, and they are not competing for the space with other staff members. High volume coffee sales are the foundation stone of every coffee shop, so make sure this workstation is perfectly laid out with easy access to underneath bins, bean storage, and bar fridge milk, having the right height bench top with easy access to cups, grinder, accessories, and reachable overhead storage of supplies. The best setups also have a small inbuilt sink to allow for quick and easy ongoing cleaning. Also, place the cash register on the front counter in close proximity to the barista’s workstation. This allows the barista to hear the customer orders and get a head start on making them in the busy times, while allowing the barista to work alone in an efficient way in the very slow times.

3. Use loyalty cards – I resisted using these for a long time … but they really do work. Make sure it is a quality card that will last the wear and tear and look good in a customer’s wallet. Nothing better than seeing a new customer’s face light up when you give them a buy seven get the eighth one free loyalty card, but tick off six of them so that on their very next purchase they get a free one. Cheapest customer acquisition ever.

4. Promote multiple sales – A coffee shop will never make enough money to pay the bills from coffee sales alone. Coffee may be the prime motivator for customers coming to the business, but they must leave with multiple sales if you are going to be successful. As a target, coffee should be no more than 40% of your weekly sales and two item sales per customer transaction means you are getting it about right. So make sure the traditional coffee accompaniments (muffins, cookies, cakes) are close by at the point of sale, and the coffee shop offers cold food, cold drinks, and hot food to ensure the best chance of multiple sales.

5. Limit the assortment – Many newbies in the coffee shop game think that wide assortments and extensive product offers are a key competitive advantage. They forget that the customer is simply hungry or thirsty or both, and that a wide choice for most people creates anguish. So cover the necessary categories, but with limited and strategic offers. (e.g. three flavors are enough, three sizes are enough, three types of food/drink are enough). Every item you add to the assortment creates many multiples of management effort (costs) and mostly without adding anything to the revenue streams or customer experience.

Merchandise your margins – Price according to perceived customer value, not according to accounting determined markups. For some well known items you will need to be at (coffee) or even below market price (coke can), and this loss should be made up with high margins on other items that are exclusive to you or in the ‘don’t-care and addictive’ mindset of your customers. So don’t add a blanket markup to your entire assortment, but price line by line according to customer expectations and what the market will bear.

7. Get your beachhead strategies right – Getting traction in a competitive marketplace like coffee shops is vital, and you will need to have a clear understanding of how to get customers to initially give you a go and a plan for keeping them returning and referring you to their friends. This is a whole other topic that I have now written about here … Counter service – Counter service is the cheapest most efficient and effective service system for a coffee shop, and it is now fully accepted by customers, thanks to the global success of McDonalds. Counter service is hassle free for both you and your customer, and it significantly reduces your wages bill. So get the customers to order and pay upfront, give them a number on a stand with their drinks, and deliver the food or better still give them a buzzer that calls them up to the counter when the food is ready. Counter service means that you can handle the peak demands that occur in coffee shops at breakfast and lunch, and it is a lot less stressful on everyone, ensuring the friendly banter can remain an important part of your offer.

8. Pre-make as much as possible – Custom-made assortments assume that the customers know precisely what they want. They don’t. Customers see you as the expert and are hoping that you will suggest to them what combination of food/drinks they should be trying. In a coffee shop context, I found it best to pre-make the food and leave the custom making to the coffee. Custom food is also a high cost option for you because you can’t get the economies of scale making-to-order, and it limits your turnover in those peak periods where you should be busy pumping out the sales as quickly as possible, not spending the time making custom orders.

9. Understand what you are really selling – Too many businesses, including coffee shop owners, don’t fully understand the need they are really satisfying for their customers, and so they often concentrate on the wrong parts of their offer. Customers frequent a coffee shop for many more reasons than just hunger and thirst. There is the escape from a stressful office, the chance to maintain or grow a relationship, a place to get away to do some reflective work, a chance to engage with familiar coffee shop staff at a particularly lonely time, or as a place to do business and reach an agreement. Understanding the needs you are really catering to will help you better construct your offer and make decisions that keep your customers returning and so maintaining the coffee shop’s success.

10. TargetTGT +0.68% takeaways – I know all your friends will tell you to get comfortable lounges, free Wi-Fi, table service, and lots of in-house entertainment … but customers sitting on one cup of coffee for hours enjoying all these benefits won’t pay your rent. My most financially successful coffee shops had a limited number of not-so-comfortable bench & bar stools to make the coffee shop look lived in and loved, but I concentrated on building the takeaway business. Takeaway customers pay the same price as the sit-down customer, but without any of the occupancy costs, and you will serve ten of them by the time your sit down customer has finished sipping on their first cup of coffee as they enjoy a chat with their friends on Face book using your free Wi-Fi.

11. Serve on the front line - Coffee shops, like restaurants, are much more a people/service business than they are a goods/transactional one. While a goods/transactional business can still succeed with a non-present owner, a coffee shop needs the owner’s care, attention, and engagement. Customers expect it, and staff are far more enlivened when the owner in on hand taking orders or making coffee or is generally hovering in active care of the business.

Probably worth mentioning why I haven’t included high traffic location on the list. The reason is that it doesn’t necessarily work for coffee. Sure, you have to be located in the area where there are a sufficient number of people, but you don’t need the high traffic location in that area. For a start, it will carry the most expensive rent, secondly you will be competing for that space with A1 tenants (Banks, telcos, fashion houses, franchise chains), making it near impossible to get as a stand alone coffee shop business anyway and thirdly, high traffic dose not always translate into high turnover for coffee. I made that mistake once, failing to realize that coffee is a destination rather than an impulse purchase and too much traffic can mean that people are more focused on getting somewhere else rather than stopping to enjoy your offer. Believe me, my first will overcome the need to get that high traffic location, and the lower rent will make your coffee shop far more financially sustainable and successful.

VOCABULARY ITEMS

a barista (coffee server) – бариста; человек, который варит кофе

a customer acquisition –привлечение клиентов

an accompaniment –сопровождение, дополнение

an anguish – мука, боль

revenue streams – поток поступлений дохода

a perceived customer value – очевидная потребительская ценность

determined markups – определенные надбавки

‘don’t-care and addictive’ mindset – установка на состояния безразличия и вызывающее привыкание

to bear – переносить, выдерживать

counter service – служба противодействия, кассовое обслуживания

a coffee shop owner –владелец кофейни

lonely – одинокий

takeaway customers – клиенты, приобретающие продукт на вынос

sip –пить маленькими глотками

to enliven – воодушевлять, вливать жизнь

hovering – зависнуть

high traffic location – место интенсивного пешеходного движения

to fail – не иметь успеха

to overcome –преодолеть

sustainable – продолжительный

II. Exercises

a. Make the detailed annotation of the text and learn it by heart.

UNIT 28. THAT’S ENTERTAINMENT

I. Read the text and comment on its content.

POPULAR FREE TIME ACTIVITIES

Britain has recent by been described as a “leisure society.” This is because there are a great variety of leisure pursuits. Young people generally go out on Friday or Saturday nights to a disco, to a concert or to a pub. In recent years going out for a meal or getting a take-away meal have become popular too. During the past years there is a great increase in keeping fit and staying healthy. A lot of teens started running, jogging and going to different fitness clubs in their spare time. Aerobics classes and fitness clubs opened in every town, and the number of recreation centers greatly increased. Indoor pools, with their wave-making machines, water slides and tropical vegetation, have become very popular. The same is true in Russia. A lot of teens go in for different kinds of sport. Sport helps them to feel as fit as a fiddle. In both countries there are special programmes for problem teenagers, such as a high-risk activities, for example they are taught to jump out of aero planes. But despite the increase in the number of teens participating in sport, the majority of young people still prefer to be spectators. They prefer to be couch potatoes. Watching sports on TV is a popular leisure activity, as is going to football matches on Saturday. Cinemas have been redesigned with four or more screens, each showing a different film at the same time, and a lot of teens like going to the cinemas too.

The young generation is fond of communication. There are many available methods of communication nowadays, and the most popular one is computers. A lot of teenagers spend plenty of time working on computers. The Internet seems really good fun. You may send e-mails to friends from different countries and get their answers instantly. You even may talk to them. It is easy and quick. A lot of teenagers have mobile telephones, so they can always be contacted, if they keep their telephone switched on, at any time of the day or night, or tend text messages.

A lot of teenagers in both countries are crazy about animals. They race them, train them and breed them. They like to hear stories about them on television programmes and they like reading books about them. Many teens have a pet animal. It could be a dog, a cat, a goldfish, a bird or a small furry animal like a hamster. Looking after and being kind to their pets is very important for teens. Why are teens so interested in animals? Perhaps it’s because they are rather shy in their heart of hearts. One of my friends says: “I can say anything I like to my dog, but she never thinks I’m silly. ”

There are plenty of other kinds of activities, such as travelling, visiting historical places, babysitting, delivering newspapers, putting together jigsaw puzzles, reading, going to different museums, skateboarding, going fishing, hitchhiking, shopping, helping people in need, joining a computer club and others. We can say “So many teens; so many kinds of activities. ”

Now some words about me. I am fifteen and I am a computer addict. I am fond of communication with other teens. That’s why I have a lot of friends in my and other countries. We send messages from one computer to another one using e-mail; we have on-line conversations. I am a member of the computing club and I spend much time there. Of course, it’s rather expensive, but my parents understand me and give me enough money to pay for my computer club. And I think that my hobby will be useful in my future profession. Besides, I spend my free time in the sport club. I go in for kung fu. Recently films about kung fu have become very popular in Russia. This fighting itself is a great art, the result of many years of hard work and self-discipline. The man who made kung fu films famous was Bruce Lee. He used fists, elbows, feet (never weapons) and moved as fast as lightning. I am rather good at kung fu now, but I never use my skills to hurt anybody, unless it is absolutely necessary. Now people know what Kung Fu is, and I think it may become a sport of the future, because it develops up your personality, will and nobility.

VOCABULARY ITEMS

leisure pursuits – занятия на досуге

a take-away meal – еда на вынос

to keep fit – держать себя в форме

to stay healthy –остаться здоровым

a fiddle – скрипка

a couch potato – лежебока, лентяй

silly – глупый, наивный

hitchhiking –путешествие автостопом

a computer addict –увлеченный компьютером

fighting – борьба

a fist –кулак

an elbow – локоть

a foot (feet) – нога (ноги)

to hurt – ушибить, поранить

a personality –личность

a will – воля

a nobility – благородство

II. Exercises

a. Answer the questions

1. What kind of leisure pursuits are Britain fond of?

2. What is the main problem of Russian teens?

3. In what way do teens communicate with each other?

4. Are teens interested in animals?

5. How do you spend your free time?

UNIT 30. WORK OF LIFESTYLES

I. Read the text and comment on its content.

EUROPEAN WOMEN YESTERDAY AND TODAY

In the 17th century rich women normally were taught at home by a tutor, they were taught subjects like Latin, French, Needlework and they were also taught how to look pretty and to play the piano and other instruments.

When they became older their parents decided who they were going to marry and the family of the woman should pay a dowry to the parents of the husband. A rich woman wouldn't normally get a job, they could just stay at home and look after the family and tell the servants what to do.

Poor women did not go to school or did not have an education; they just looked after their home, children and prepared meals or worked in fields. They didn't get paid much and had to work hard.

In the 19th century rich women were educated at home and learned pretty much the same as in the 17th century. They were learned to play the piano, speak French, entertain guests and look attractive. After 1870 it was made compulsory for all women to have an education. Girls didn't learn the same subjects as boys. Girls learnt subjects like laundry, cookery, needlework and housewifery skills.

Rich women did not work, but ran their home with the help of their servants, after 1870 some women became teachers and others could work as secretaries or clerks. So, women could work but there was a condition. At that time any woman had to retire when she got married.

Servants of rich women did all her domestic tasks at home. So all they needed to do at home was to look good and attractive and boss servants around.

Poor women had to work as well as bringing up her children, they had to work in coal mines and factories for long hours earning little money. Until 1870 young children from poor families had to work too.

In the 20th century, when the 1st World War started, women could leave their underpaid jobs and could get jobs at a factory because all men had gone off to fight for the war, so women worked in factories, making arm ours for the war.

When the war was over, women had to go back to their old jobs and they didn't earn as much money as they were used to earn. Some women became teachers. Women were now aloud to vote and the first female presidents came. Some women were involved in politics.

Women started to wear different clothes, they do not wear corsets any more, they wear shorter dresses, even trousers.

To my thinking, the role of women has changed quite a lot. I think all changes that happened in the 20th century were good, because women became to be treated more equally and even more due to the processes of emancipation.

VOCABULARY ITEMS

to be taught – быть обучаемым

to pay a dowry – платить выкуп

to retire were aloud to vote – достигнуть возраста голосования

to be involved in – быть замешанным, занятым во что-либо

to treat smb – обращаться, обходиться с кем-либо

II. Exercises

a. Translate the sentences into English

1. В 17 веке знатных дам обучали дома таким предметам как латынь, французский язык, рукоделие, и тому как хорошо выглядеть, играть на фортепьяно и других музыкальных инструментах. 2. Богатые женщины обычно не работали, бедные женщины не ходили в школу и не имели образования; заботились о своем доме, детях, готовили еду или работали на полях. 3. В 19 веке обеспеченные женщины тоже получали образование дома, им преподавали практически то же самое, что и женщинам семнадцатого столетия. 4. После 1870 года образование для женщин стало обязательным. 5. В 20 веке роль женщин очень сильно изменилась, женщины получили равные права и занимали ведущие позиции, как в работе государственного сектора так и в бизнесе.

Основная литература

2. Bob Dignen, Steve Flinders, Simon Sweeney “English for work and life 365” 2. Personal Study Book. – Cambridge University Press, 2004. Кол-во экземпляров: всего – 250

3. Аванесян, Ж.Г. Английский язык для экономистов (+CD): учеб. пособие для студ. вузов экон. спец. / Ж. Г. Аванесян. – 4-е изд., стер. – М.: Омега-Л, 2009. – 312 с. (+СD). – (Курс иностранного языка). – Библиогр.: с. 312. – ISBN 978-5-370-01178-8. Кол-во экземпляров: всего – 58

4. Агабекян, И.П. Английский язык для экономистов: учеб. пособие [для студ. вузов] / И. П. Агабекян, П. И. Коваленко, Ю. А. Кудряшова. – М.: Велби: Проспект, 2008. – 368 с. – ISBN 978-5-482-01825-5. Кол-во экземпляров: всего – 243

5. Агабекян, И.П. Английский для экономистов: [учеб. пособие для неязык. вузов] / И. П. Агабекян, П. И. Коваленко. – 7-е изд., перераб. и доп. – Ростов н/Д: Феникс, 2006. – 413 с. – (Высшее образование). – ISBN 5-222-08666-6. Кол-во экземпляров: всего – 294

6. Дюканова, Н.М. Английский язык для экономистов: учеб. пособие для студ. вузов по экон. спец. / Н. М. Дюканова. – М.: ИНФРА-М, 2009. – 320 с. – (Высшее образование). – Библиогр.: с. 318. - ISBN 978-5-16-002361-8. Кол-во экземпляров: всего – 100

7. Богацкий, И.С. Бизнес-курс английского языка: словарь-справочник / И. С. Богацкий, Н. М. Дюканова; под общ. ред. И.С.Богацкого. – 5-е изд., испр. – Киев: Логос-М, 2007. – 352 с.: ил. – (Вас ждет успех). – Библиогр.: с. 350-351. - ISBN 5-8112-0669-0. Кол-во экземпляров: всего – 25

8. Колесникова, Н.Н. Английский язык для менеджеров = English for managers: учебник для студ. учрежд. средн. проф. образования по спец. 0602 – Менеджмент (по отраслям) / Н. Н. Колесникова, Г. В. Данилова, Л. Н. Девяткина. – 5-е изд., стер. – М.: Академия, 2009. – 304 с. – (Среднее проф. образование). – Библиогр.: с. 300. – ISBN 978-5-7695-6659-2. Кол-во экземпляров: всего – 30

9. Любимцева, С.Н. Деловой английский для начинающих: учебник / Светлана Николаевна Любимцева, Б. М. Тарковская, Л. Г. Памухина. – 8-е изд. – М.: ГИС, 2003. – 368 с. – ISBN 5-8330-066-1. Кол-во экземпляров: всего – 34

10. Шляхова, В.А. English for Students of Economics: учеб. пособие для студ. эконом. спец. / В. А. Шляхова; МГИУ. – М.: МГИУ, 2006. – 136 с. – ISBN 5-276-00675-Х. Кол-во экземпляров: всего – 28

Дополнительная литература

1. Каверина В. 100 тем английского устного / В. Каверина, В. Бойко, Н. Жидких) – М.: 2002. – 192 с.

2. Сергеев, С.П. English, 120 Topics. Английский язык, 120 разговорных тем. / С.П. Сергеев. – М.: изд. "А.Д.В.", 2003. – 48 с.

3. Цветкова, И. В Английский язык для школьников и поступающих в ВУЗы. Устный экзамен.Топики. Тексты для чтения. Экзаменационные вопросы /И. В. Цветкова, И.А. Клепальченко,Н.А. Мыльцева – М.: ГЛОССА-ПРЕСС, 2004. – 206с.