Coffee shops and Social Media

The future of coffee houses is getting brighter and brighter in the U.S. There are more consumers who are interested in drinking coffee daily. There are more than 20,000 coffee shops in the U.S with annual revenue of $10 billion. The coffee market is crowded with competitions between corporate brands and private brands. Unlike the old day when coffee shops were marketed traditionally, which the main distribution channels were pamphlet, brochure and leaflet, the current coffee shops target their audience by social media. Social media is a useful tool for the coffee house owners to get to know their customers, position their products and differentiate their brands.

There are many popular social platforms to get in touch with the customers such as Facebook, Twitter, YouTube, Pinterest.

Facebook: currently is the most used by people all over the world. There are always potential customers on this social network. The level interaction between business and customer is high. Business can publish product information and generate conversation as well as feedback from the customers. Recently, Facebook has many updates for advertising such as “Promote” function, “Create Page”, “Create Ads

Twitter: one of the easiest way to let your message heard is to post it in Twitter. A great way to generate more views is to put on hashtag (#) and find a great influencer. You can also work up to be an influencer in the internet as well.

YouTube: It is the largest video sharing site as of today.

Pinterest: With tangible products like the coffee house, Pinterest is a place where business display the best picture of the product they have. 

Customer Experience Marketing – Starbucks

Nowadays, almost all coffee lovers drink or heard of Starbucks. Starbucks is one of the most successful coffee chain in the world. It has more than 23 thousand stores in 64 countries, with 13 thousand in the U.S, 2 thousand in China, 1,500 stores in Canada, 1,000 stores in Japan and over 900 in United Kingdom. The success of Starbucks is undeniable. The company’s net-worth is multi-million. Like Starbucks’s CEO said “Everything Starbucks touch becomes gold”. Yet, the success of Starbucks does not come in one day. It is the result of creativity, hard-work, and strong desire which will inspire and motivate the next generation to look up and become more successful.

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The beauty of Starbucks comes from customer experience enhancement. People do not come to Starbucks to drink a cup of coffee. Instead, they want to experience the environment, the service and the time spent in the store. It is obvious that the quality of coffee is of importance. However, the leverage that separate the brand image of Starbucks to other existing coffee companies is Customer Experience Marketing (CEM).

In Starbucks, CEM contributes a huge impact on the success of Starbucks. Nowadays, there are a lot of stores that resemble Starbucks. They have been trying to copy and paste the style that Starbucks has, the environment and the service. It is certain that besides CEM other elements such as finance, risk management, supply chain management play an important role. However, the key factor that draws the customers to the stores and make them become a loyal customer is an effective CEM.

Coffee Drinkers Demographics in the U.S.A

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According to National Coffee Association USA’s (NCA) report, the demographic of coffee drinkers are becoming younger and younger. 41 percent of 18 – 24 age group are drinking coffee daily, which 31 percent higher as opposed to the coffee consumption in 2010. The senior age 60+ group also rose from 71 to 76 percent in 2013.

Among the selection of coffee consumption, espresso is more favored by the younger generation compared to the older generation. The war between gourmet coffee and traditional coffee is still unpredictable, because beverage consumers are varied and divided equally among the groups. While the senior groups prefer gourmet coffee, the youth still loves to drink traditional coffee. The daily consumption of gourmet coffee among elders rose from 19 percent to 24 percent last year. In the age group between 25 and 39, the figures dropped to 18 percent. In terms of traditionally brewed coffee, the daily consumption remains stable among elders, while shrinks from 27 to 17 percent among youths.  

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83 percent of American drink coffee every day. Among the groups, Hispanic – American partakes 76 percent, outpaced other ethnic groups, while 47 percent of African – American drinks coffee daily and that of 64 percent of Caucasian – American. A statistic showed that coffee industry grows more than 10% of fast food chain annually. 75 percent drinks coffee at home, while 66 percent prefers to dine and have a cup of beverage outside. The research also stated that the number of coffee shops have been increasing in the recent years due to the fast growing demand in the industry.

When does the American drink coffee?

a)      In the morning

b)      In the afternoon

c)      In the evening

d)     Before bedtime (I know it may sound crazy, but I do have a friend drinks a cup of coffee before going to bed)

It is not surprising that 59 percent of American drink coffee in the morning. So, if you are an entrepreneur in the coffee industry, do not open the store until 11:00 am, you already lost over half the potential market.

 

What are 3 things that make me go to the coffee shop?

If I can name things that make me want to go to a specific coffee shop, the list would be endless. Therefore, to make the lists short, easy to read and full of content at the same time, I will limit the reasons to 3. There are attaching images of the wonderful coffee shop that I traveled to so that you won’t get bored while reading it.

Have you ever wondered while there is a specific spot that is so memorable, that every time your friend needs a recommendation about an interesting place to go, you always recommend that place? Maybe there are a lot things come to your mind: interior design, music, good service, nice whip cream, etc. All of these reasons are all part of first impression.

First impression is extremely important. A good impression will boost up your brand image and maximize added value. When I go to different places and experience the variety of coffee shops, I get to know that impression comes from great passion of the coffee shop owner. Starbucks gives me a sense of vintage and comfort. Angel-in-us has a modernized feeling. Highland coffee is a high-end place, which makes me feel confident and proud of myself. Yet, these places are corporate coffee business. A self-owned coffee shop, in my opinion, is different. It is more passionate to me. Many privately owned coffee shops have their own unique style, theme and atmosphere as well as their own recipes. In contrast to corporate coffee shops, these privately owned business win the customers by their first impressions.

Do you think that first impression is important to open a business?

Do you think that first impression is important to open a business?

One of the things that makes your business memorable is the big buzz around the community. In this case, social media comes in handy. Now, there are a lot of methods to use to approach the new customers: word of mouth, leaflet, brochure, online social media platform. At first, it is always better to understand the target market before launching a marketing plan strategy. Advertising the coffee house business online is a great way to start. Usually, I use TripAdvisor to search for a great coffee place to visit when I travel to a new area. For those who don’t know about TripAdvisor, TripAdvisor is “Unbiased hotel reviews, photos and travel advice for hotels and vacations – Compare prices with just one click.” TripAdvisor is a great tool to advertise your coffee business. The information regarding advertising in TripAdvisor is here.

Last but not least, I always felt that good service is what keep the customers stay and recommend the business to their peers. Don’t you think that good service doesn’t always limit in the way the employees treat the customers? Good services can translate to a nice heart in the customer’s latte, clean environment, a friendly smile from the employees to the customers, good feeling when the customers leave the shop, etc. It is not biased to say that you know immediately that the shop offer good service when you enter the store, because everything is a representation of perfect and tres bien inside the store.

A perfect Tiramisu means good service

A perfect Tiramisu means good service

All in all, the 3 things that keep me coming over and over at a coffee shop are: first impression, popularity and good service. From a customer point of view, I hope this article helps you – as an entrepreneur – find out the critical information that makes your business differentiate from others, and as a customer – share the nice experience together.

 

What is a good location for business?

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Hello everybody,

Location is always one of the most important decisions for every business owner. Location drives in sales. Location is the best method to market your product naturally. In business, location is everything. Yet, there are a lot of misunderstandings about a good location in business. Therefore, the topic today is to clear the misconception about location as well as define what a good location for your coffee house is.

I was lucky to have a talented friend who open a coffee house. If you ever travel to Vietnam, an Eastern oriented culture, please don’t forget to visit Alvelo Coffee in Su Van Hanh St, Ho Chi Minh City. After several visits to his coffee house, my dream of opening one becomes bigger. Since I was in secondary school, I always dream of being the owner of the coffee shop, because it makes me feel happy and fulfilled. I fell in love with the smell of coffee seeds. Therefore, I have been searching for information of the coffee industry. Any concepts and ideas are valuable for me. If I open a coffee shop in the future, the first thing that I must concern is location.

First of all, what is a good location? Obviously, everybody desires a high traffic location, because it is good for business. It is a market-free position. It also helps to confirm your product in the market as being one of the best. But really, it also consumes your business a lot of money. For the start, high-traffic place definitely affect the shop financially, because the monthly rent will absolutely sky rocketed. The business also have to compete with high-profile businesses in the neighborhood such as other coffee shops, the banks, the renowned restaurants. Everything becomes the major threat. Therefore, high-traffic location does not translate a high turnover in business.

A good location comprises of understanding of your needs and selection of demographic. Like Jacob Jaber, CEO of Philz Coffee, said “Passionate people who start it because they are passionate and talented with coffee, not because they want to start a business.” Running a coffee house is not only about making money. First, to start a business, it is imperative to ask yourself these questions:

  1. Does the place large enough for the business?
  2. Does the building need repairing?
  3. Is the location meet the brand image you want to build and maintain?
  4. How is the neighborhood? Does it near the center of the town?
  5. How is the competition in the neighborhood?
  6. If you are the customers, do you find it convenient to commute to the coffee house?
  7. Does the place have a parking spot?
  8. Does it near public transportation?
  9. Is the neighborhood adequate to your type of business?
  10. Considering you want to expand the business in the future, will the building accommodate this growth?

All in all, a good location can mean different things to different people. However, there are subjective factors that make a location a good location. Answering these questions can have you well-prepared for your future business in terms of choosing a desirable spot.

Hope you have a good time reading my blog. I also wish that you achieve knowledge after finishing it.

Goodbye and good luck with your dream job.

Binh