Last week I sat down with Ryan Maloney, the Director of Operations at Jimmy’s Coffee. With over 18 years in coffee, Ryan has experience at the management level at Starbucks and recently moved onto Jimmy’s -- one of Toronto’s hippest multi-location, independent coffee shops! This is the 1st of a 4 part mini-series where we pick the brain of Ryan on all things cafe success-related...
How do you turn that $4.50 sale into a $5, $7, $9 sale? That customer is already in your door willing to spend! How can you maximize that sale by appealing to your customers’ wants and needs while still maintaining an offering that fits your brand?
This is a question coffee shop owners and managers have been asking themselves for a very long time. The team at Jimmy’s Coffee seems to be mastering these principles as the business continues to see success and expansion throughout Toronto. I sat down with Ryan Maloney, their General Manager, to dive further into these concepts that any coffee shop or quick service restaurant can execute.
1. Expanding Your Offering
A long time customer brings their friend into Jimmy’s, but they don’t drink coffee. Suddenly there is nothing on the menu that person can enjoy. This is a lost opportunity to not only sell a product to somebody in that moment, but also to create a customer for future visits. As a company, there is value in having a niche, especially while you are starting out. A niche, well thought-out product can help to launch your business into the public realm and put you on the map. However, there comes a point when every company needs to expand what they offer in order to appeal to a wider demographic and allowing existing to customers to make the add-on purchase. Suddenly customer can now buy that perfect cookie to go with their coffee.. the sandwich that they grab for later on in the day.. the gluten-free pastry that they buy for their friend at the office.
2. Self-Branded Merchandise
This can include coffee beans, branded mugs, beautiful french presses, T-shirts, or the (famous) Jimmy’s patches and enamel pins! Maybe one of your customers has a friend’s birthday approaching or they’re (already) thinking about the next holiday season. They wouldn’t want to offend the coffee lover in their life with an impersonal Starbucks gift card, but a branded peice of merchandise from a small local shop is just the quirky gift they could be looking for. You’ve created an opportunity for your customer to spend more at the till than just the price of their Medium Americano. The concept also works to promote your brand in two ways. In today’s market, loyal customers feel an emotional connection to brands and therefore love to represent the coffee shop they associate themselves with. At the same time, with this type of branded merchandise circulating around the city it can also serve to create new customers. “What is Jimmy’s Coffee? I have to give it a try, I keep seeing their name everywhere!”...
3. Reloadable Coffee Cards
When a customer buys a reloadable Jimmy’s card, either for themselves or as a gift, they are committed to spending money at the establishment. Whether they load $10, $20, $30, or go as far as the automatic top-up using the app, they are committed. Once the card has been loaded, the money is considered to be already spent. Creating the opportunity for customers to benefit from card/ app spending by giving them rewards points encourages higher spending and increased loyalty. They pop into Jimmy’s in the morning for their daily coffee, knowing they have a big day ahead and it might be tight to squeeze in a proper lunch. They decide they may as well grab a sandwich and a couple snacks since they are already there, and it will add to their points and rewards!