Coffee Drinking in Coffee Shops

Coffee Shop, Coffee brands, customer perc blog post

Why Your Customers Do It, And What They Want More Of.

The Background

Coffee in Ireland is a drink growing in popularity year on year.

The Irish Coffee Council is the voice for the coffee industry in Ireland in matters of growth, manufacture, distribution and consumption of coffee, and while even they accept that “we still drink far less coffee than our European neighbours – and remain at heart a “tea drinking nation”” (here), it is unquestionably true that coffee has been (and continues to be) a consumer good growing more and more in popularity all the time – value sales of coffee grew by 12% in 2014 according to Euromonitor International, with fresh coffee sales accounting for that growth (instant coffee sales are, in fact, consistently declining).

Here at Customer Perceptions, it’s our business to take note of trends in retail and hospitality, so we asked people about their experience and attitudes to coffee shops. This is how they responded, and some conclusions we can draw from those responses.

The Numbers

The first question we asked was very simple – how often do you visit a coffee shop? The largest single group of respondents (56.25%) visited once a week. After that the next largest segments were “a few times a week” (12.5%) or “once every two weeks” (again, 12.5%). Perhaps surprisingly, when we asked our survey respondents whether they preferred sit-in or take-away, fully half of our respondents suggested they preferred to sit in, with only 12.5% preferring take-away coffee (although 37.5% admitted to having no preference either way, which suggests that at some points they are sitting in to drink their coffee). When asked if they prefer large chain coffee shops or small independent establishments, the overwhelming response (50%) responded that they preferred small independent coffee shops. Only 12.5% admitted to preferring large chains.

In a very direct way, it’s not just about the coffee for people. The overwhelmingly vast majority of our respondents do not simply purchase coffee alone – only 12.5% bought nothing else, with 75% of people buying a pastry, cake or bun, or 31.25% (with some overlap, obviously) buying a sandwich. In terms of an average spend, only 31.25% of respondents spent less than €5, with the remainder spending between €5 to €10 per visit. In terms of what people find important when they visit a coffee shop, cleanliness came out on top, with 81.25% of respondents rating it very important, the next closest factor in their choice of coffee shop being staff friendliness (50% rating it very important). Price, perhaps surprisingly, was rated very important by only 37.5%, but 62.5% did rate it quite important.

Another possibly surprising result is that child-friendliness was rated not important by 62.5% of respondents, with only 12.5% rating it very important (below even free wifi, which 18.75% felt was very important). Quality of the coffee itself is also key, given that 87.5% of respondents considered either a very important or quite important factor. So, what conclusions can we draw from these figures?

The Conclusions

Given the background of a the coffee market in Ireland (sales of coffee increasing overall while sales of instant coffee decline) it’s perhaps unsurprising that the quality of coffee has become so important a factor – people seem to be becoming coffee connoisseurs, or at least consider themselves knowledgeable about coffee (this is also reflected in our survey, in that while 68.75% of respondents consider quality of coffee very important, only 37.5% rated price as important).

People are willing to spend more for quality. However, the rise in consumer coffee sales also means that people are frequenting coffee shops for other reasons – proximity to home or work was rated “not that important” by 43.75%, with only 25% rating it “very important”. The comparative lack of importance of child friendliness and price tell the other half of this tale. Coffee shops (especially with sit-in business) is seen as a small luxury – an escape from the responsibilities of daily life (81.25% responded that atmosphere was important or very important).

This is key for any coffee retailer – a 2011 study by Bord Bia found that overwhelmingly people felt coffee was not a luxury item, and that good quality coffee was available from inexpensive discount retailers like Aldi and Lidl – it was part of their daily lives. Our own survey shows that coffee shops specifically are not part of that trend. Atmosphere is important, quality of coffee is important, having to travel to the establishment isn’t, nor is any coffee shop’s catering for families.

This is what coffee shops are competing on – not on producing a product that’s already been cheaply stocked up on in your customers’ own homes, but on a relaxing atmosphere, a quality product and a reprieve from those very homes, just for a little while.

Six Ways to WOW! Your Customers!

Wow Customers!

We’ve been talking to some of your potential customers, (because that’s our job!). We asked them to recount a time when they were wowed by a hospitality experience, and to explain exactly why – to identify the individual elements of the experience that contributed to them being blown away by an establishment. We called it the WOW! factor, and we’ve dissected the information we were given to try and understand exactly what a WOW! factor consists of, and to figure out how to build them every time! We got 93 responses to our query, and we broke them down based on their importance – how many people specifically mentioned each factor. Take a look at this information, it comes directly from hospitality customers, and it’s the anatomy of a WOW!

  1. Complimentary elements. Free stuff!

This might surprise you, but while it did inevitably merit a mention in the poll, it didn’t feature as anything like the most important factor. In fact it tied with our next category for least important. Customers certainly like it when they get something for nothing, but it’s really not a deciding factor for them. Also, while we had one respondent relate the extravagant story of hotel upgrades when the staff discovered her future-husband was proposing, for the most part people were mentioning things like loyalty cards that entitled them to a free coffee after so many purchases. Little things can go a long way, because ultimately this isn’t what most people are looking for. It’s a nice-to-have for customers, not a must-have.

  1. Facilities.

Tied for bottom in importance with complimentary elements was facilities. That should probably be a relief, since facilities can be expensive to change. Parking, for example, was mentioned once or twice, but can be something largely out of your hands – the space you have around your business isn’t something you can realistically change. What is within your power to change – and made up most of the comments about facilities, by the way – was cleanliness. With some staff diligence it’s simple to implement and it’s important to people, especially in the hospitality sector. Chances are, in this sector, people are coming to you for food. Seeing evidence of a real commitment to cleanliness puts your customers’ minds at ease.

  1. Price.

It might be surprising that out of 93 respondents, only 28 specifically mentioned price as a factor in their WOW! experience. Now, we’re not saying value for money isn’t important to people – after all, even in this poll almost a third of respondents mentioned price specifically, and that’s a significant percentage – but in terms of what blows customers away, it’s not as important as you might suspect. There’s also a distinction to be made about what factors initially draw a customer to your business – the WOW! factor is very much about drawing people back to your business a second time, and in a survey about trying out a new restaurant price might have featured more highly. BUT! With those provisos in place, and in terms of wowing customers, it seems like people are willing to pay for experiences they find to be exceptional, which should be encouraging!

  1. Atmosphere.

We’re getting into the more important factors now, with about a third of people citing atmosphere as a crucial factor in their food and beverage experience. Like facilities, this is an element that in certain ways it might be difficult or expensive to do anything about – a few of our respondents mentioned things like mountain and sea views or medieval castles – obviously difficult to organise if you’ve got a small town-centre café. What should be encouraging, though, is that for the most part, when they talked about this category, respondents mentioned a “welcoming” atmosphere. That’s something well within the reach of any establishment to achieve – a little attention and a polite, warm attitude from staff might save you having to find a castle to stick on the premises!

  1. Food and Beverage Quality.

This one almost goes without saying. It was the second most important factor for respondents to our poll. Food and drink is the lifeblood of the hospitality industry, it’s ultimately what gets your customers’ bums onto your seats, and it seems that it features heavily in terms of what wows a customer too, so take care and invest in it. There are some ancillary elements to food and bev that might be easy to overlook – presentation was important to people, but also staff knowledge about the menu – when a customer asks a question about an item, they shouldn’t be met with a blank stare. Ideally, they should be met with a confident understanding of the product.

  1. Staff/Service.

72 out of 93 respondents specifically mentioned this factor, making it the most-mentioned factor in creating a WOW! experience in our poll. More than three quarters of our respondents felt it was worth specifically mentioning, but if you read over the other factors, you’ll see how many of them rely in some measure on your staff. Certainly, it’s possible to argue that of the six factors we identified, four of them rest on staff behaviours and competencies (the cleanliness of your facilities, the welcoming atmosphere, etc.). It’s a striking reminder of just how valuable an asset your staff is, and should give pause for thought – how well-trained are your staff? Do they need more guidance in the performance of their duties? Answer these questions well, address the issues that they raise, and our poll suggests you’ll have spent your time and effort well.

Ultimately, as turns out, it’s people who WOW! people.