A clip from our Exhibition rantings in Glasgow last month kindly sent to me by our Coleraine friend.
Caffe Culture coming soon with new concepts from our new book … currently with the publishing editors (very fussy folk) and due for release hopefully next month.
Hugo.
Completely agree with Johnny … Some great points.
Have to say Freddie’s “Aaaayy Ohh” (last 50 secs of the clip is one of my outstanding memories of the 80’s … The control that he has is staggering with such a large crowd - pure genius.
To be fair to Pret - They do do it. And that to me is the difference. So many of us talk about it, quite likely understand it and don’t execute. I love the Dalai Lama’s line “to know and not to do is not yet to know”.
And to be fair to The Hoff … who was first on after lunch .. he is doing it rather well. Loved his wine analogy and the realisation that espresso at £1.50 = an approx £37 bottle of wine in volume terms. How good would you expect and indeed demand a £37 bottle of wine to be ?
Our old friend GaryMac (not to be confused with GaryVee who GaryMac clearly could beeee) was really first class. A top notch review of the latest marketing material out there and very well thought out and articulately delivered … there is life in the old dog yet …
Next up a Cup presentation which was single walled, one colour, leaked and didn’t need a jacket as it was already struggling to keep temp with …. everybody actually. And the lid didn’t fit.
Well done to Jeffrey and the team … and another great central location.
Royally entertained by fabulous designer Mike Leahy (www.leahybrands.com) a good pal of the infamous James Healy who sadly is no longer with the coffee world and has transferred his significant talents tothe innovative cattle feed business clearly taking some lessons from his years of coffee marketing with him as he sells ‘a better feeding solution for cows, people and the world we live in’ Jaysus … now who does that remind you off ?
Finally a great dinner with The Welsh Coffee Wizard himself … who is going from strength to strength … Watch out Pret … Coffee #1 is coming your way. Spotty Dog was with him …. Haha.
Hugo.
Hugh and I were kindly invited by Jeffery Young of Allegra Strategies to attend the UK Coffee Leader Summit on the day previous to Caffe Culture. These events are always useful from a networking perspective (even though that’s generally an expression that puts the fear of god into me) but there was some great content too.
First up was Darcy Willson-Rymer - the MD of Starbucks. It was a tough day for him, that’s for sure, but I’m not convinced how much of a favour he did himself by treating the audience to a 30 minute press release about how great Starbucks is for the community both locally and globally. It was always going to be a tough audience to impress and I fear he chose the wrong message. But hey - what do I know?
After discovering just how wonderful it was for all of his staff to work with people who had learning disabilities we were forced to sit through a saccharine video where we followed the adventures of a little old lady who visits her local Starbucks every day. Horrendously the music then became a little more emotional and a “four years later” caption was flashed across the screen. It was impossible not to assume that she had died but no - four years on she was just doing the same thing. Visiting her local Starbucks and enriching the lives of the employees as much as they enriched hers. Nice.
Like most of us I actually don’t like to bash Starbucks but when they take themselves this seriously it’s impossible not to start a variety of sentences with “I’m not a Starbucks basher but...”. Those words appeared in at least 50% of the following speakers talks.
Next up we had Rebecca Hemsley of Pret a Manger speaking about training and coffee as opposed to the food side of the business. I was sitting with James Shapland (MD of the exceptional 12 site chain Coffee #1) as well as Hugo and it was enlightening to see how much of the work that we had been doing with him tied in with what Pret do. It’s worth bearing in mind that he is seeing substantial like-for-like growth this year and undoubtedly this is partly due to his relentless focus on great training.
The gist of what Rebecca was saying was this:
* Create great initial barista training
* Create great follow up training workshops (i.e. don’t assume that initial training is enough). These workshops are there to help create buzz. One of my pet rants is that many operators forget just how magical the barista process is to the customer. Clearly Pret are aware of this and she emphasised just how much work and training is involved in keeping this buzz.
* Create a great forum to get feedback from your baristas (even if bad) - and then act on it!
* They have an internal magazine for Baristas - The Bean
* They mystery shop for coffee and generally… a lot.
* They create a “Magic Moments” book which has a variety of crazy things they do to keep up the buzz. e.g. Red Tie day - you get a free breakfast if you’re wearing a red tie or free coffee if you can shoot a basketball into a hoop. It’s easy to be slightly cynical about this stuff 9and it’s not for everyone) but this stuff can be great for certain models (like Prets).
* They show their staff awesome customer service in action by showing Freddie Mercury controlling the crowd at Live Aid. This is a genius technique that I’ve often used in staff training (although not with Freddie… yet…). It totally transforms an employee’s (and ideally a manager’s) perception of how to manage people.
Watch the way he works it here:
* They really stick to their food principles. It’s hard to argue with this. Many of the big chains really dilute (especially the coffee specific ones) as they grow. I still take clients to Pret as a shining example of how to produce a really great mass produced sandwich.
* Their quality checks are relentless. This is no surprise to anyone who has run a business of any size. It may not be sexy or exciting but the only way to create the consistency is to constantly check the quality (and to be prepared to reject). As I recently quoted in our new book Henry Royce (Rolls Royce) would maintain that “good enough is NEVER good enough”. It’s a great mantra.
* they are offering 99p coffees in many locations outside London in an effort not to be seen as the “posh option”. There is a lot to be said for this but please don’t go adopting it as a knee jerk reaction. It’s a very well thought out part of their strategy and has many influencing factors.
* They give away lots of free coffee to their regular customers. Not in a loyalty card system but as an individually driven reward. But…
* They have VERY strict controls on wastage and costs.
Rebecca finished with another Freddie Mercury reference which I thought was very apt:
“We’re fussy and finicky and have very high standards. If a song can’t be done properly, we’d rather il isn’t done at all. We’re the fussiest band in the world, and we put so much loving into every album.”
There was a slight sense of “heard it all before” amongst the audience for the Pret speech but for me there were some real gems. It may well have contained nothing ground breaking but that’s the case with most successful businesses. It contained a LOT of “we do well because we work extremely hard at it” messages and very often that isn’t what people want to hear.
I’ll update with the rest after the bank holiday.
Johnnie Richardson
This year we are undertaking a variety of events at Caffe Culture at Olympia in London.
Firstly we are talking on both Wednesday and Thursday under the title of “Recession proof your business“. This will be on the main stage and is at 1.00 p.m.
http://www.caffeculture.com/page.cfm/Link=36/t=m/goSection=20
We will finally be launching our long awaited “Ten Key Factors” report which contains our top ten concepts that you need to focus on to thrive in a recession. The report also has key input from our most successful clients as well as some of the most highly respected industry experts. Two of these clients are seeing 20% growth during the last year with like for like sales so these are guys you should pay attention to. We will be dealing with four of these factors on the day and then releasing the rest, one per day, after the conference is over.
Each factor will be accompanied by an online video with Hugh and I discussing the key implications and exactly how you can incorporate it into your business to get immediate results.
If you haven’t already signed up for this report make sure you do so at:
Secondly we are also hosting two workshops each afternoon (Wednesday and Thursday) between 3.30 and 5.00 p.m.
These are intriguingly (and confusingly titled) “Marketing your business Operational systems”
http://www.caffeculture.com/page.cfm/Link=90/t=m/goSection=21
What we will actually be doing will hopefully be a little less confusing. We want to try and get some real results for the people who are attending these workshops so the format will be:
15 minute discussion on the importance of systems and my Three Act realisation as to just how important systems are… (I’m a slow learner!)
15 minute discussion on the key factors for marketing your business particularly in recessionary times.
Three 20 minute hot seats. In these hot seats we will deal with any specific aspects that you may be having with your business and hopefully pool our knowledge to get you some great results.
We will video these hot seat sessions and the videos will be made available free to all attendees after conference is finished. You must agree to the videoing of your session in order to be considered for a hot seat since they may be used in the future.
If you wish to book a hot seat - which will be chosen on a first come first served basis - you’ll need to email me directly at John@thecoffeeboys.com and let me know the broad outline of what you would like us to consider. This allows us to spend as much time as possible actually working on your problem and not have to focus too much in the twenty minutes on getting a grasp of your situation.
We very much look forward to seeing you there.
Many thanks
Johnny Richardson
Starbucks are managing to use the current economy as a way of blaming their falling sales:
Boo Hoo Starbucks - It’s not my fault mummy
This is one of the key points that we deal with in our free new report and videos (to be published In May at Caffe Culture). Many operators are allowing the struggling economy to give them something to blame for their poor sales and profits.
Whilst nobody is going to get through the next couple of years without being affected by the economy the key thing to do is to ignore it. To accept complete responsibility for your business and the fact that we have ALWAYS worked with cyclical economies and then to focus on managing and developing a great business that will survive and hopefully thrive.
So while we have lots of great tips and techniques in the report if you can’t get this basic concept then life is going to be very tough - as it clearly will be (and already is) for Starbucks.
To sign up for the new report go here:
Johnnie Richardson
Right now just about everybody is focused on the economy and where its going … Banks, Property Developers and related businesses like Estate Agents are experiencing a difficult time.
When the headlines are blaring doom and gloom, it takes a strong mind to stay focused on what matters and that - more than anything else - is what coffee entrepreneurs need. In the Coffee Business there is only one economy that matters … Its Yours.
At the end of the day, it doesn’t matter what “the economy” does, all that matters is what YOU do. This is a battle for your mind. We are all suggestible creatures and its hard not to get swept away with the poor economy message.
And YOUR economy depends on finding and serving your customers. This week the stock market had the biggest one day decline in it’s history - but guess what – a day later people still need their daily hit , still need to go to work, still need to take a break, still need to eat lunch …
Don’t let the headlines pull your attention away from that.
Here are 3 things to consider that should help keep your coffee head together and focused on the opportunities in the days ahead;
1: Economic activity may slow down and decline, but it never goes to zero
Now is the time to focus on building your business when your competitors are in a panic. Down times are great times to start businesses as well. Costs are lower, staff are easier to find and you will be more inclined yourself to make plans to ensure you get through. Many of us have great ideas but fail to action them. Now is that time.
2: There are ALWAYS customers with money to spend
Thousands of successful new business are started in recession. Others grow massively. People still need their Coffee. Now is the perfect time to focus on your quality and taste. Make sure that the customer comes to you to spend their hard earned cash and not your competitor.
• Make sure your coffee tastes better. Do an audit of your competitors and benchmark your products against them. Make it at least 10% better changing whatever is necessary.
• Get the help of good suppliers that add value like great training.
• Above all keep your coffee consistently good so that the regular customer is never dissatisfied.
3: Smart coffee business owners and managers will have good systems & training.
Less start up businesses fail in a recession because they are forced by all their advisors and the banks to have a good business plan in place.
It always, always comes down to good planning and action. All the lovely strategies and ideas are useless if you don’t do it. So make that investment in new equipment now if it is going to improve your quality & taste. This will radically improve your ability to sell more to a more discerning customer.
Smart coffee business people are flexible, can adapt to the times, and find today’s opportunities. If you always do what you’ve always done that doom & gloom economic monster can catch you very fast …. but only if you let it.
Hugh Gilmartin
Today The Coffee Boys move into the funky new Web 2.0 world - we’re getting down there with the hip media kids and at the moment they’re staring at us in a “freak” fashion but we’re here to stay.
Hugh and I will be producing a lot more of these in the future but hopefully it provides an easier way for you to digest our information and spoutings!
So the number one key is…
Mindset.
It is entirely up to you how you deal with this. In a few years time when we are moving back into another boom there will still be loads of coffee shops out there. And a few will not have made it - no doubt about it. Which side of the fence will you be on?
Will you be like some of my clients, coincidentally the ones who keep working “on their business” regardless of the economy, who haven’t noticed any change in their takings?
or…
Will you be like those operators I talk to who are all doom and gloom and are expecting not to make it. Who are simply working harder day in and day out and sticking their heads in the sand like an ostrich?
Will you be reading and nodding your head sagely at article like this on the MSN money site?
The end of the world is Nigh!!!
or will you be working away at training, developing new products and marketing and casually be noticing articles like this?
It’s up to you.
Johnnie Richardson
When we first set up our businesses we are 100% convinced that we can and will do a better job than the competition. We list out the factors that we will do better, that we’ll relentlessly focus on until we have this wonderful business that clearly offers a “superior experience”. We smirk, snigger and discuss with our friends and colleagues just how badly the competition is - we even allow ourselves to believe that our enterprise can’t go wrong, that it will be a “no brainer” since our offer will be so much better.
But what is the reality? What are the actual facts? What exactly does your customer think of this supposed “superior experience”
The management consultancy firm Bain and company undertook some research on the subject of which businesses supply a “superior experience”. They surveyed a total of 362 firms and 80% believed that they truly offered a “superior experience for their customers.
When they surveyed the customers of these businesses though the story was a little different. Only 8% of these businesses were rated as superior.
Where do you fall?
Are you in the 20% who know you don’t offer a “superior experience” - in which case good luck in the current economic climate.
Are you in the 8% who genuinely do offer a “superior experience” - in which case I bet you’ve worked very hard at it and are in that category of clients (of mine) who don’t seem to have noticed that there eve is such a thing as a “credit crunch” or…
Are you in the 72% of businesses who are living in denial? Are you falling asleep at night worrying about the business and thinking that you can’t do any better but feeling the crunch hitting you hard?
If you are in the last category it’s time to get really realistic about your business and wake up. It’s time to really push the boat out and genuinely provide a “superior experience” because if you’re not it’s going to be a VERY bumpy ride.
When I visit any coffee bar or restaurant I always have a question in my mind and I believe every single customer does exactly the same thing - whether they realise it subconsciously or not. That question is:
They maybe don’t use a profanity that I use but human nature means that we just want to be loved, respected and valued - it’s simple basic stuff. Your job is to ensure that a customer does feel you “give a s*#t” when they bother to spend their hard earned money in your business.
When we were in New York we were lucky enough to stay in The Waldorf Astoria for a few days. This was, without a shadow of a doubt, the best example of a business “giving a s*#t” that I have ever seen. Nothing was too much trouble and wherever you turned there seemed to be somebody about to ask you if there was anything they could do to help you. When they realised it was our first time staying with them and we had travelled all the way from Ireland we were immediately upgraded to an incredible room and offered a tour of the Presidential suite (which unlike most Presidential suites actually has had Presidents staying in it!).
The sense of calm and contentment was enormous and it made it one of the most relaxing and comfortable few days of my life.
It’s easy to assume that you can’t compete at this level. That you can’t devote the same energy to training your staff that the Waldorf can. That there’s no way you can make every customer feel wanted and loved and that you really want them to be there. That you’re just too busy dealing with all the day to day “stuff” to make it all touchy-feely lovely.
But you’re wrong. These things are actually quite simple. It can be as simple as a proper, genuine smile and a hello when the customer first comes in. It can be as simple as a “I’ll be with you in a second” when the queue is long. It can be as simple as remembering a customers drink or even, best of all, remembering the customer’s name.
I can already hear people saying “well, I do all that but there’s no way that I can get all my staff to do that” As ever I say “Have you really tried?, have you actually put in place a proper training and induction program that tells you employees exactly what you expect from them? A program that helps them to properly grasp why this is necessary? Do you really train and measure these kinds of things?”
Many of my clients have and actually have seen huge benefits from it. The ones that keep working at this stuff are the ones who tell me they are seeing no difference in their sales during the supposed credit crunch. It takes a little time to set up with to begin with but is absolutely essential. Sometimes we spend far too much time training people how to make coffee and far too little actually telling them how to treat customers like a human being and prove to them that we really give a s*#t that they bothered to visit us on that day.
With money tight and credit crunching these things are more important than ever.
