Hi all,

I just finished with a new blend for Scooter’s Coffeehouse. It is called Il Dando Miscela ( the giving blend). They will be using it to promote charities. Pretty cool.

 It has a rich, full body with  mild acidity and a hint of sweet, dark chocolate that really adds to the mouth feel and aftertaste of this coffee. It is versatile enough to be a morning coffee, after dinner coffee, or alongside your favorite dessert.

I personally prefer it all by itself. Try a single serve, or for the best flavors to come through, I recommend a french pressed cup of this fine gourmet blend.

I also tried a Tanzanian peaberry to see what flavor profile I could attain. Non flattering results so far. Will be working on this one over the next week or so and will keep you all posted on the results.

Harvest Roasting

February Newsletter

By Don Eckles, President

 

 

Now may be the time to upgrade your staff.  Whoa!  If one of your employees opened this letter, you may not even see it.  But seriously…now may be the perfect time to evaluate your staff, and make changes, if changes are needed.

 

Regular readers of this newsletter know that I think customer service is one of the most important parts of your business.  Customer service is as important as your location, and, it’s more important than your pricing structure or the brand of syrup you use (no offense, Monin).

 

It’s well known that people buy from people they like.  It has always been that way.  You can’t resist great customer service…not if it’s genuine.  A pretty good drink and a warm friendly smile will always win out over a great drink, handed out with indifference.

 

Indifference is everywhere.  I can’t tell you how “bugged” I am when the person checking me out at the grocery store carries on a conversation with the check-out person in the next lane…completely ignoring me.  Or, how I feel when I pull into a fast food place, and the window opens…someone say’s $3.89 (O.K…they really say $5.89)…and the window closes.  A few seconds later, the window opens again, someone hands my change out, and the window closes again.  Man…I can’t wait to go to that place again.

 

On the other hand, I had lunch in a national chain yesterday.  My server told me about the specials of the day, offered me a “regular customer card” of some sort, wrote my name on the card and told me how the program worked, and called me by my name several times during my time there.  When I left, she said “it was nice to meet you, Don”.  Wow.  I was not only impressed…I’m going to offer that lady a job.

 

We all need people like that representing us to our customers.  Customers get a wonderful feeling when they are treated really well.  They can’t get enough of the place.  And they certainly wouldn’t go anywhere else for their coffee.  They would almost feel like they were “cheating on you”.  People with great customer service skills make you feel like you’re a friend.  Their whole focus is on you and how they can make your day better.  It’s so enjoyable that you kind of hate to leave the place.  THAT is great customer service. 

We sell coffee and assorted products to a store in south central Nebraska.  The couple that owns the store have it all figured out.  He is warm and easy to talk to…she is “out of this universe” friendly.  With her, “Hi” is spelled “Hiiiiii!  You just want to get your wallet out and say “here…take it…it’s yours”.  That friendliness has served them well in the past few years.  Another coffee store has come to town.  It has a better location, 2 drive thru windows, and a great looking building.  What they don’t have is Greg and Kim.

 

You know people like that.  In fact, you may be a person like that.  But you should strive to have everyone in your store be a person like that.  And, repeating what I said at the top of this letter…now may be the time to find those people.

 

With the economy struggling, many people are unemployed or underemployed.  When we run ads now, looking for help, we get dozens, if not hundreds of applications.  There are some very gifted and friendly people out of work, through no fault of their own.  Some of those people would be wonderful additions to your staff.  Or, they may actually be on your staff now.

 

If you have that person, now may be the time to sit down and talk about building a business together.  Talk about what it’s going to take, and the new attitudes that will be required.  Generally, unless you have a real “dud”, your employees will be excited to be part of something new and better.  They know what it means if your business doesn’t make it…they lose their job, too.

 

If you don’t have that person, now may be the time to find them, and start moving forward.  You need someone who is not only willing to try, but anxious to try.

  

Here’s what you should look for…

 

A very clean, well kept person

Appearance is so important.  If they aren’t neat and clean when they come in for the interview, it won’t get better…I can promise you that.  You and your employees are handling things that your customers are going to put in their mouths.   Believe me…they are looking at cleanliness.

 

Bright, friendly eyes that are full of life

Some people just have a love for life.  Find those people.  They are pleasant to be around, and your customers will feel the same way.

 

A warm genuine smile

You can’t fake nice for very long.  Nice people attract other people.  Hire genuinely nice people.

 

Someone who looks you in the eyes when they are talking to you

It’s the best way to tell whoever is speaking to you, that you care about what they’re saying.

 

Good speaking skills, someone who uses proper grammar

Poor grammar is a real turn-off.  They don’t need to be an English professor, but they do need to be able to walk and chew gum at the same time.

 

Good listening skills, someone who doesn’t monopolize the conversation

Good listeners know that it’s always about someone else…it’s not about them.

 

Someone who is not afraid to up-sell (in fact…have them sell something to you during the interview)

This is a great way to find out whether or not you have a winner.  If they are too embarrassed to do this…how are they going to up-sell your customers?  It doesn’t matter how good they are at it (at least when they are practicing on you), it’s the fact that they were willing to try.  If they are willing to try to sell something to you, they will probably be willing to try new things, as your employee.

 

       It’s been interesting watching how various stores seem to do during difficult times.  We’ve noticed that, in stores where we have a great staff, business always gets better.  In stores where the staff is poor to OK, business stagnates or drops.  If we fix the staffing issue, business turns around.  It really is about taking good care of our customers.

 

I hope you have noticed that my newsletters are about constantly moving forward.  There is no such thing as a ½ empty glass (not for successful people)…only a ½ full one.  My intent is to help you see the potential your business has.  It doesn’t matter where you are, or which challenges you face, there is a solution, and that solution is wearing your shoes (you are the solution).  Be proactive with your business.  You have time and money invested…you can make it work.

 

Finally…have you noticed our new web-site?  It is harvestroasting.com.  Great new look…easy to navigate.  As always, we have the best products on the planet, and they are competitively priced.  Please try our world class espresso and coffee beans.  With any order of 75 lbs. of coffee or espresso, we’ll ship your entire order, freight free.  That includes syrups, smoothies, sauces, cups and lids, etc.  By the way, we have added Chinet’s line of triple insulated cups to our site.  They are called “Comfort Cups”. We currently have 16 ounce and 20 ounce cups.  The lids are black, and they fit both sizes.  We will have the 12 ounce cups in stock very soon.

 

Thanks for reading this.  I hope you get some good from it, and that it helps you to grow your business effectively.  Past newsletters are available on our web-site.  If we can help you with anything, please contact Bill Kipper at 402-709-9489.  Or, you can e-mail him atbill@harvestroasting.com

 

Sincerely,

 

Don Eckles

Harvest Roasting

 

Harvest Roasting

January Newsletter

By Don Eckles, President

 

 

 

How is Business?  Are you concerned about what lies ahead in 2009?  Just this week, huge, well known companies have announced closure or bankruptcy, or both.  Even in the specialty coffee business, a large regional player has gone down.  What does that mean to you?  Maybe nothing…but, it sure should be a reminder of what happens when we get lazy, or when we cut corners.

 

In our company, we see this as a time of great opportunity, while at the same time recognizing the realities of the market.  In the past 2 or 3 months, we have purchased 3 coffee stores from banks for pennies on the dollar.  These are stores that were doing fairly well, as far as sales volume goes, but were completely out of control in the area of debt and operating expenses.  The same thing could happen to us, or you, if we’re not diligent about sales and expenses.

 

In the past few newsletters we talked about the importance of using high quality products, controlling cost of goods and cost of labor, and, giving exceptional customer service.  In this edition, we’re going to discuss marketing, and the impact it could have on your business.  And, we’re going to look at how you can market your store for very little money.

 

Before you start any marketing program, I think it’s essential that you know what it is that you’re going to market.  In other words…what is it about your store that would entice a customer to come to you instead of someone else?  Do you make better drinks?  Is your atmosphere better?  Is it a lower price?  Are you more convenient or do you provide better and faster customer service?  If you can honestly say “yes” to most of those things, you’ve got a winner, and you need to tell someone (customers) about it.  If you can’t say “yes” to at least a few of those things, you need to figure how you can truthfully change your answer.  Look back at our past newsletters for some free advice relating to these areas of your business.

 

Once you’ve figured out what separates you from the crowd, you need to find a way to get people to try your store.  Make sure your staff is prepared for the extra business, and that your store is ready for its debut.  Once you start marketing your store, people will come in.  You need to be sure that, once they come in, the experience is so good that they will come back, again and again. 

 

Marketing on a budget:

 

The least expensive form of advertising is called “gorilla marketing”.  It’s not fancy, but it’s effective.  It can be as simple as you or some of your employees going to neighboring businesses and passing out some coupons, or taking some samples of coffee and muffins.  Be sure to leave a take-out menu with each business you visit.  You will be surprised at just how many people have never tried your store, or maybe didn’t even know you were there.  Make sure the samples are “out of this world” good, and that, whoever is going on your behalf, knows the importance of a big smile and a warm invitation.

 

I love banners.  They’re inexpensive, and VERY effective.  You may need a temporary sign permit to put a banner out, but it is very much worth the expense.  When we want to market a new store, or one that needs a jump start, we like to do a 3 day “free drink” promotion.  We put out a banner announcing that all 12 ounce drinks are free for a certain number of days, and, that all other drinks and smoothies are $1.00 off for the same period.  The 1st day you’ll give away quite a few drinks, but will still sell a surprising number of drinks for $1.00 off.  Day 2 you’ll do more…and the 3rd day, more still.  I always tell customers to “tell your friends and co-workers that the drinks are free”.  The idea is to get as many people as possible to try your drinks.

 

Direct mail can be a great way to build your business…if the offer is right, and you’re ready to “wow” people when they come in.  Do not do one of those “mailer” campaigns, where your ad is one of a dozen or so that gets sent to homes in the area.  Do your own piece.  It’s more expensive, but the results can be staggering.  You can create a very nice piece and produce 10,000 of them for less than $1,500.00.  Then, you can bulk mail them for about a quarter a piece.

 

Or, you can create a different piece…one that offers a free drink, and maybe a five punch card which, after filling, gives the customer another free drink (this gives you 7 chances to impress that customer).  With an offer like this, the best way to distribute the cards is by buying a few boxes of clear plastic bags with a slit for a handle…put a card in the bag, then, go through the neighborhoods and hang them on doors.  It takes longer, but it’s also much less expensive.  You could see a return in the 8%-15% range, which is much better than the 1%-2% range you’ll get from most mailer programs.  And, with the plastic bags that you hang yourself, you can do 200 or so each week.  That allows you to really focus on the new people coming in, and to absorb the cost of the promotion a little bit at a time.

 

Don’t be shy about asking for some financial support from your suppliers or your franchisor.  Many franchisors will offer co-op dollars for marketing, and many suppliers will give you some free products to help support your efforts.  Don’t ask your milk delivery person…call his boss and ask.  Same with coffee…call your roaster and ask for some marketing support.  Your cup supplier would probably provide you with a case or two of cups, if you ask.

 

One last thing about marketing.  You won’t get the most bang for your buck, if your store looks shabby.  Make sure the lights are working, inside and out.  Look at the store through the eyes of a customer.  Is it clean and comfortable?  Are the employees clean and neat?  Do they know their stuff?  You’ll get 1 or 2 chances with a new customer, so you must get it right.

 

I hope you find these letters helpful…

 

Remember, if you feel the need for some additional help, we do consult.  The cost of consulting is $500.00 per day, plus expenses.  But, we’ll give you that $500.00 per day back in the way of free products from Harvest Roasting.  So, for the cost of the expenses, you can get consulting help.  If you’re a current Harvest coffee bean customer, I might be able to help you over the phone…and that’s free.  Also, if you would like to receive this newsletter via e-mail, please let us know.  You can e-mail me directly at don@harvestroasting.com.   Give us your e-mail address and the name and location of your business, and we’ll take care of the rest.

 

Finally…we would love to be your coffee supplier.  Harvest Roasting supplies most of the products for coffee houses all over the country, every week.  Please check out our web-site, or call Bill Kipper.  Bill’s number is 402-709-9489.  Our web-site is www.harvestroasting.com.  As an added inducement, we’re offering free shipping on your entire order, when you purchase at least 75lbs. of our specialty and premium grade fresh roasted coffee beans.  If you’re currently not using 75 lbs. of beans per week, you can order every other week, or even once a month.  As long as you order 75 lbs. of beans, we’ll ship your entire order, freight free.  That includes syrups and sauces, smoothie mixes, cups and lids…everything.  Ask Bill for details.

 

Here’s hoping that 2009 will not only be a year you survive, but one in which you thrive.

 

Sincerely,

 

Don Eckles

Harvest Roasting

 

 

 

 

Harvest Roasting

November Newsletter

By Don Eckles, President

 

I’ve never seen tougher economic conditions than what we are now experiencing in the United States.  At the same time, I’m not seeing a down-turn in business…which at first glance seems a bit puzzling.  Starbucks reported same store sales for the 3^rd quarter were down 8% from 2007.  They also reported a huge drop in profits for the same period.

 

Last week I was eating at the FarmHouse Café in Omaha.  The place was packed.  As I’m sitting there, I was trying to make sense of that.  The food is certainly not inexpensive…other restaurants are closing, and yet, I had to wait 10 minutes to get a table.  What’s the difference?  It’s quality.  Great restaurants rarely close, and when they do, it’s usually because of something like a poor location.

 

I have always believed that, while coffee isn’t totally recession proof, it’s close to it.  Customers may not buy a new car or a new home, but things have to be pretty bad before someone gives up their daily coffee.  That doesn’t mean that we won’t see a slowdown in spending, but a recession doesn’t have to be fatal to your business.  In fact, some of your competitors will probably fail.  That could mean good things for your store.  Are you prepared to take advantage of that opportunity?

 

When people have less money to spend, they are going to be choosier about where they spend it. 

 

Those who think that “a latte is a latte”, or that, “all flavoring syrups are alike”, are probably going to have a hard time distinguishing themselves from their competitors.  Many people in the specialty coffee business use whichever supplier they were told to use.  It might be the same one used by the person they purchased their store from…or it may be whoever the local supplier is, or, it may even be someone who gave you a “heck of a deal” somewhere along the line.  Those are not necessarily good reasons to buy from a particular supplier.

 

Most of us think that we make the best drinks, because, that’s what we know.  We’re accustomed to the taste of our own drinks.  When we try drinks from other stores, somehow, ours just taste better.  Don’t confuse familiar with great.

 

Years ago, I used Monin Flavoring syrups in our drinks (we still do).  A local distributor had decided to close out a different (and less expensive) brand, and offered to sell a pallet of that flavoring syrup for $3.50 per bottle.  Well…I thought I had hit the mother load.  I purchased the whole pallet, and began using it the next week. 

 

The day after I began using the cheaper syrups, one of my good customers pulled up to the window and said, “you were a little off on my drink yesterday…it wasn’t very good”.  OH MY GOSH!!!  I asked what the problem was, and she said that the drink just had a “funny after-taste”.  That’s when I learned the importance of natural ingredients verses artificial ingredients.  And I had a whole pallet of this stuff!!!

 

Personally, I believe in Monin.  But that’s not the point.  The point is this…the quality of the ingredients that go into your drinks is important.  Just as important as the customer service, and almost as important as your location.  Pretty good will not be good enough during tough times.

 

To distinguish yourself, you should look at everything you offer in your store.  Don’t kid yourself!!!  Be open-minded about your drinks.  Sample your best competitors, and ask yourself, honestly, how you compare.  Ask your customers to give you some honest feedback.  “How do my drinks compare to______?”  “What is it that brings you to my store verses another store?”  “What could I do better?”

 

 

 

I still think that, for the most part, we are a coffee and pastry business.  Do those two things well, and you’ll probably do just fine.  Let’s look at both…

 

Pastries…

You don’t need a huge variety, but what you do carry should be eye-appealing, and delicious.  And, change things up now and then.  See what your baker has for each season, and offer your customers some fun new things.

 

Don’t hold pastries past their life.  A stale muffin is nasty.  If they haven’t sold, toss them…don’t try to save .90 cents by passing off an old muffin on an unsuspecting customer.  You may never see them again.

 

Keep the display case clean and well lit.  Arrange things in a way that makes them appealing to the customer.

 

AND…UPSELL!!!  “Would you like a fresh wild-berry muffin with your latte?”

 

Drinks…

This is why people come to you in the first place (or go to your competitor).  Use a high-quality espresso, from a supplier you can trust.  This is very important.  Burnt or bitter isn’t good.  Smooth and rich and flavorful is good.  Make sure it’s fresh.  Espresso or coffee that’s over a month old is too old.

 

I suggest whole milk in all unflavored drinks, and 2% in all flavored drinks.  Only use non-fat milk if the customer asks for it.  Whole milk tastes richer and creamer (obviously), but you really have to have a fine palette to tell the difference when you’re mixing it with chocolate or flavoring syrups.  The cost difference is generally around .25 cents a gallon.  Use fresh milk every time.  Don’t re-steam milk.

 

Do some taste tests of your own.  Ask suppliers for samples of flavoring syrups and sauces.  Try them as steamers, and, mixed with espresso.  Sometimes a chocolate that tastes great in steamed milk tastes different when you add espresso.  We sell the best at www.coffeehouseinabox.com

 

Use a cup with an insulated sleeve, or a paper cup with a jacket.  Styrofoam is a non-starter with customers of specialty coffee.  While they are cheaper, customers don’t like them.

 

And remember, if you need help…We Consult.

 

Roasters Minute

Customers love new things, and the holidays are a great time to roll out some new choices.  Each November and December, for the past several years, I have roasted a special blend just for the holidays.  I call it Holiday Blend.  It’s a wonderfully smooth coffee with a nutty flavor, with hints of chocolate overtones.  Maybe it’s just because we call it Holiday Blend, but it sells well.

 

Another holiday favorite is a flavored coffee.  It’s called Mistletoe Mocha.  And while it isn’t a big seller throughout the year…at the holidays, chocolate mint coffee just seems right.

 

Both are available on our website www.coffeehouseinabox.com

 

For Information, call:

Bill Kipper

402-709-9489

 

Harvest Roasting

October, 2008 Newsletter

By Don Eckles, President

 

There are many ingredients in a “success pie”.  But in the coffee business, the important things are fairly easy to identify.  They are: Sales, Cost of Goods, Cost of Labor, and, Fixed Costs.  Actually, these are the same things all businesses must focus on.  But in the coffee business, where smaller sales volumes and a lower average ticket are commonplace, it’s critical that we get these things right.

 

In the last two newsletters, I talked about the importance of selling high quality products, providing great customer service, and, how to control your cost of goods.  In this month’s issue, we’re going to look at the cost of labor, and again, how to control it.

 

It’s important to have a labor goal, and stick to it.  Otherwise, when profits are down, an owner may have a tendency to cut labor costs, and just work the hours themselves.  An owner’s (or manager’s) time is much better spent managing the business, and finding ways to get more dollars in the door, rather than just cutting expenses.  We’ll talk more about that later in this edition.

 

First, we need to have a labor cost “goal”.  I like to live in the “25% of daily sales” range.  That may not be possible in a new store, or one with lower sales volumes.  But, a mature store with a capable staff should be close to that percentage.  Even for a new store, anything over 30%

of sales (long-term) could be fatal to your business.

 

Your labor cost, as a percentage of sales, is figured by dividing the labor costs into the sales.  So, a monthly labor cost (including all taxes and payroll expenses) of $5100.00 divided into $20,000.00 of sales, would be 25.5%.  A general way to figure your total hourly cost would be to take the wage you pay and multiply it by 1.12.  That would (depending on location and tax rate) include FICA, Medicare, and unemployment taxes.

 

In our stores, we give our managers a labor budget.  It’s based on the number of employee hours we feel are needed to operate the store effectively, and still allow for growth.  Each store is different, but based on the number of hours a store is open; we decide how many people are needed for each hour of the day.  Based on hourly sales volume, you can determine your staffing needs.

 

Generally, while allowing for growth, I staff for the “usual” volume of the store, and then handle the unforeseen rushes as they occur.  I hear people say that “I need 3 people here in the late afternoon, because sometimes we get hit hard.  My question is…how often do you get hit hard?  If it’s every couple of days or so, then maybe the extra staff is justified (remember, we’re allowing for growth).  You can’t staff for the occasional surprise rush…you just handle those.

 

A busy coffee store will need 3 or 4 good people working during the morning rush, with each person assigned to specific responsibilities.  That’s a busy coffee store…one that is doing $700.00 - $1,000.00 by 11:00 a.m.  Otherwise, 2 morning people would be fine.  We look at the number of customer rings per hour, for our staffing.  Anything under 16 rings per hour is a 1 person hour.  Up to about 35 rings per hour is a 2 person hour, up to 60 rings per hour is a 3 person hour, and so on.  And, when the rush is over, we scale down quickly.

 

For many reasons, I think it’s important for a manager to work shifts during the busy times.  Those reasons include the customer contact (VERY IMPORTANT for customer loyalty), observation and ongoing training of the staff, the opportunity to keep a good handle on the wants and needs of your customers, and the need to stay “tuned in” to what’s going on in the industry and your business.  This is critical to keeping your current customers.

 

Just as important though, is driving new business to your store.  As a manager, you should spend time every week marketing your store.  EVERY WEEK…FOREVER.  It’s important to remember that things change.  Customers move away, they change their habits, they change their daily routine…whatever.  Developing new business is vital to your long-term success.

 

We’ll spend time in future newsletters discussing the many ways you can effectively market your store…and for a very small cost (or no cost at all).  But, since we’re discussing labor costs today, I want to point out that the best way to keep costs down (as a percentage of sales), is to increase sales.

 

One other thing I’ve found, over the years, is that hiring people for the minimum amount of money doesn’t usually work out very well.  We’re in the Midwest, so costs may a bit different here, but, paying in the $7.50 to $8.00 per hour range seems to get us a pretty good employee.  Shift leaders, supervisors, or managers, obviously get more.  Including taxes, we budget based on an average hourly wage of $9.60 per hour.  That would be an average hourly base wage of around $8.55.

 

Employee retention is also very important…both in terms of customer retention and in over-all labor costs.  Turnover is a killer to the budget.  I’ve found that a new employee isn’t very valuable for a couple of months.  During that time, there is a lot of babysitting, and supervising.  That means double staffed shifts, and products mistakes (cost of goods…remember that one?).  Paying people well, and treating them with respect, will keep the employees happy, longer.

 

And finally, don’t forget that training never ends.  That doesn’t mean that you should badger your employees, or constantly find things to criticize.  But, you can’t let things go, either.  Train, train, train, on customer service, on drink quality, on speed of service, and on the importance of store cleanliness.  Your customers will appreciate it, and ultimately, so will your employees.

 

Roasters Minute

 

Most people know that there are two types of coffee beans…Robusta and Arabica.  Specialty coffee roasters use Arabica beans. Commercial coffee roasters tend to use the cheaper, lower quality Robusta, or a blend of both.  But, even Arabica beans can differ greatly, in quality and taste. 

 

There are 5 grades of Arabica coffee beans.  These grades are rated by the size of the bean, number of defects per 300 grams of coffee beans, and moisture content. 

Grade 1. Specialty coffee: Has less than 5% size variance, only up to 3 full defects and moisture between 9 and 13 per cent. This is the best of the best.

Grade 2. Premium coffee: same as grade 1, but with up to 8 defects.

Grade 3. Exchange grade coffee: 9-23 defects, 15%-20% size variance, and moisture content somewhat off.

Grade 4. Standard grade coffee: 24-86 defects and more variance on size and moisture

Grade 5. Off grade coffee: more than 86 defects

 

We use only Specialty grade and Premium grade beans for all of our coffees. If you are buying coffees in the 5.00 per lb. range, chances are, they are either grade 4 or grade 5 beans.

 

Please check out our Web Site

 

At www.harvestroasting.com you’ll find premium products at very competitive prices.  We would love to send you some samples of our wonderfully smooth espresso…just call.  And, if you’ve missed them, our previous newsletters are available there, as well. 

 

In next month’s newsletter, we’ll talk about surviving during these very difficult times.

 

Happy Selling,

 

Bill Kipper

402-709-9489