Determining the return on investment (ROI) from a coffee programme is a common challenge for food and beverage managers and coffee shop operators. Financial gains are the most obvious measurement. But real value should take a long-term view taking into account things like brand perception and customer loyalty.
In this article we explore how to work out the real ROI of your coffee programme, what factors influence it and how to design a coffee programme that delivers short-term returns, alongside lasting value.
What Kinds of ROI Can Coffee Generate?
A coffee programme’s ROI is more than just judging financials. Sure, financial ROI is a very clear measure of how profitable the experience is by comparing things like costs to revenue. But there’s another aspect that you should consider.
And that’s Brand ROI.
Financial ROI
Judging financial ROI is simple. How much revenue is your coffee experience bringing in compared to your costs on things like your machine and other equipment, your coffee, staff and marketing. Essentially, are you profitable right now?
Brand ROI
Brand ROI can influence the bottom line, even if in a less obvious way. Judging brand ROI involves looking at things like customer loyalty, increased footfall or your brand reputation. What do customers think about your coffee? Are you seeing more repeat customers?
Although you may not see immediate financial returns from these, they’re a good indicator that you’ll generate long-term value from your coffee programme. Balancing these perspectives ensures a coffee programme that’s both profitable and sustainable.
Factors that Influence Return on Investment
What Type of Coffee Programme Are You Planning to Run?
The type of coffee programme your business provides will shape your approach to costs and returns.
A quick and affordable “grab and go” coffee programme could deliver faster financial returns due to lower start-up and running costs.
But a premium service prioritising quality and customer experience can build a strong, loyal customer base and deliver greater long-term value. The choice depends on your business goals, audience, and the experience you want to create.
Where Will You Be Located?
Your location plays a crucial role in determining the success and ROI of your coffee programme. High-footfall venues like hotels, garden centres, and retail settings often offer greater opportunities for financial returns, as they attract a steady stream of customers.
However, location also shapes the type of coffee programme that will work best.
For instance, a grab-and-go setup may suit a busy retail environment, while an upscale hotel or garden centre café might benefit more from a relaxed, premium service.
Aligning your coffee offering with your location’s audience and expectations is key to maximising its potential.
What Equipment Will You Need to Invest In?
Your choice of equipment will dictate the type of coffee experience you can create, directly impacting your ROI.
For a straightforward, standard offering, equipment like bean-to-cup machines or filter machines can be excellent choices. These options are cost-effective, easy to maintain, and require minimal training, making them ideal for quick-service or high-volume environments.
If your vision involves a more artisanal, barista-led programme with personalised service and a diverse menu, espresso machines are the way to go.
While they come with higher capital and running costs, they enable a premium coffee experience that can command higher prices and attract loyal customers.
Each type of equipment has unique upfront and operational costs, so it’s essential to choose what aligns best with your business model and ROI goals.
Fitting Out Your Area to Match the Coffee Programme
You might think your coffee experience is all about the coffee. No.It’s about the entire experience the customer has with you.
The quality of your coffee, the type of equipment you use, and the ambience of your space must work together to leave a lasting impression on customers.
If any part of the experience doesn’t work, your ROI drops. For example, you might serve exceptional coffee, but if your seating is uncomfortable or outdated it will lead to customers thinking: “The coffee’s great, but it’s a horrible place to sit.”
On the other side of that, your space might be modern, but the coffee is low quality. Now your customers are thinking: “It’s a nice place to sit, but there’s better coffee down the road.”
Think about your coffee programme as a whole. From coffee flavour to the seating layout and overall atmosphere, every element should reflect the experience you want to offer.
How Will You Price Your Coffee Programme?
Let’s be honest, price is always going to be on your customers’ minds at some point. If your customers want a plain and simple coffee they can get quickly, they’re not going to expect to pay a premium.
If they want a barista-crafted coffee that’s been customised to their tastes with different milks or syrups, they’re not going to be surprised it’ll cost a bit more.
Your pricing strategy should align with your target audience and the concept of your coffee programme. Striking the right balance between cost and perceived value will ensure your offering is both competitive and profitable.
Will You Need to Train Staff?
If your coffee programme focuses on speciality, customisable coffee with a personal touch, investing in barista training is essential.
Skilled baristas are the foundation of a high-quality coffee programme, bringing expertise, consistency, and the ability to personalise each customer’s experience. However, training and retaining a skilled workforce comes with costs.
These can include initial training sessions, ongoing skill development, and efforts to reduce turnover, such as offering competitive pay or additional benefits.
Understanding these expenses is vital to calculating ROI, especially for programmes that rely heavily on barista-led service. Weigh the benefits of a well-trained team against the potential costs to ensure your programme is both sustainable and profitable.
How We Help Businesses Improve ROI From Their Coffee Programme
Improving ROI on a coffee programme requires a strategic approach that balances quality, efficiency, and customer satisfaction. We’ve partnered with over 500 businesses in our near 50 years of trading, and have identified a few key areas for improving ROI:
- Invest in Better Coffee: Offer high-quality, well-sourced beans to attract customers, boost satisfaction, and enable premium pricing.
- Choose the Right Equipment: Align your equipment with your service goals. Bean-to-cup machines for efficiency. Espresso machines for premium, barista-led experiences. Reliable equipment minimises downtime and costs.
- Optimise Staff Training: Train baristas to ensure consistency and enhance the customer experience. For high-turnover environments, consider automated solutions to maintain quality.
- Streamline Operations: Improve workflow and layout to reduce waste, increase efficiency, and deliver faster, better service.
- Enhance the Customer Experience: Pair great coffee with a welcoming, well-designed atmosphere to encourage repeat visits and longer stays.
- Leverage Upselling Opportunities: Increase revenue by identifying upselling opportunities offering add-ons like snacks, seasonal drinks, or premium menu items.
- Track and Adjust Pricing: Ensure pricing reflects the value of your programme - premium offerings can command higher prices, while lower-cost options focus on volume.
Learn How to Increase ROI From Your Coffee Programme
Achieving ROI isn’t just about short-term profits. It needs a strategic approach and long-term view to get the best results. From selecting quality coffee and equipment to optimising pricing, staff training, and the overall customer experience, every decision plays a role in driving financial and brand returns.
At Bridge Coffee Roasters, we’ve helped hundreds of businesses build coffee programmes that are both profitable and impactful. By focusing on quality, efficiency, and customer satisfaction, you can create a programme that not only delivers results but also enhances your brand for years to come.
