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FOODSERVICE G COFFEE CUSTOMERS Updated equipment, a sizeable counter area and multiple brew flavors can help position your chain as a coffee destination. By Erin Rigii<, Associate Editor T HE COMPETITION FOR COFFEE customers con- tinues to brew among the various channels, with convenience stores feeling increased pressure from Starbucks, Dunkin' Donuts and numer- ous QSRs—even Walgreens' new superstore prototype in Chicago and New York is serving up fresh java. While competition is fierce, the good news is customer demand is surging as well, but their palates are becoming increasingly discern- ing. Total coffee consumption is on the rise, having jumped five percent- age points according to the National Coffee Association's (NCA) National Coffee Drinking Trends 2013 market research report. The increase means some 83% of the U.S. adult popula- tion drinks coffee. What's more, daily coffee consumption by coffee drinkers totals 64%, and 75% of consumers report drinking coffee at least once a week. Retailers are taking note and upping the quality and variety of their brews, continually sampling to peak customer interest, and upgrading their coffee bars to make room for an expanded condiment station whenever they remodel stores. As foodservice experts repeatedly note, mastering coffee is step one on the road to a profitable food offering. CHANGING WITH THE TIMES Jim Weber, chief marketing offi- cer for the Spinx Co., noted that the change in customer coffee palates has been evolving for years, beginning with the inception of Starbucks and its heavy, dark roast coffees that java fans soon began demanding from conve- nience stores as well. When Starbucks launched Blond, Weber noted, the company also began resonating with the common coffee drinker who prefers a lighter flavor. "As a c-store chain, we've learned to adapt to the Starbucks influence by providing the dark roast option, as well as an array of varieties, as opposed to 'Hey, here's our cup of Joe'—which is how c-stores traditionally used to operate," he said. Spinx, which operates more than 70 convenience stores in South Carolina and North Carolina, has been partner- ing with Royal Cup Coffee—through which it offers proprietary brands of Spinx Coffee—for 20 years. Spinx offers a regular House Blend, a dark roast known as "Midnight Roast," a decaf coffee, and in specific stores it provides a hazelnut option. Holiday and other in-and-out favors also keep the coffee bar exciting and continuously refreshed so customers can find some- thing new. At presstime, Spinx had just finished offering its Harvest Blend, a pumpkin flavor for autumn, and was introducing its Holiday Blend with a cinnamon Streuselflavor.Such limited- time offers are introduced, on average, every eight weeks. "Throughout the year, we typically 42 Convenience Store Decisions | December 2013 CSDecisionso

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  • FOODSERVICE

    GCOFFEE CUSTOMERS

    Updated equipment, a sizeable counter area and multiple brew flavorscan help position your chain as a coffee destination.

    By Erin Rigii

  • FOODSERVICE

    run geographical blends from parts ofthe world, which is becoming prettypopular. We have offered a Brazilian,a Costa Rican and a Kenyan blend, toname a few," Weber said. "Our cof-fee partner. Royal Cup, sources thoseand lets us know when a blend isavailable, so we work closely withthem to keep our coffee offering excit-ing for customers."

    UPGRADING THE COFFEE BARRaceTrac recently drew attention to

    its coffee program with its third annual"Free Coffee Week," which ran fromNov. 10-16. Customers who stoppedby any of RaceTrac's more than 365stores during Free Coffee Week hadthe chance to enjoy a free brew-nocoupon required. RaceTrac recentlyrevamped its coffee offering and hasexpanded its coffee bar presence inits newest stores. RaceTrac is offeringsomething for every coffee drinkerwith an array of six blends, including100% Colombian Roast, Dark Roast,Hazelnut and Extra Caffeinated. Itscoffee bar also boasts that it allowscustomers to create their brew theirway with a host of free flavored syr-ups, creams and sweeteners.

    Kangaroo Express, celebratedNational Coffee Day on Sept. 29,by offering a 12-ounce Bean StreetCoffee for just a penny. As part of itscurrent "New at the Roo" program.Kangaroo Express is renovating storesin key areasincluding the coffee bar.Recently 10 stores in North Carolinagained an updated Bean Street Coffeemakeover to include new coffee dis-pensers and more spacious servingstations complete with accessories,such as creamers, syrups, caffeineshofs and whipped topping.

    TravelCenters of America (TA), opera-tor of the TA and Petro Stopping Centersbrands, recently introduced WorldBlends Coffee to its locations. Now pre-mium whole bean blends are groundon-site just before brewing. Customerscan choose between four varieties:House Blend; Dark Sky Caf Blend; RedSky, a South American medium-bodied

    Come n & try any size cup ofour crazy good coffee for FREE

    no coupon necessary!

    Offer validSunday 12/16-Saturday 12/22

    Savvy chains know sampling coffee is agreat way to pique customer interest andconvert them to continous coffee customers.

    coffee; and High Mounfain Arabica, afull-bodied dark roasf.

    "The coffee in our resfaurants andtravel stores was good before, but thenew fresh ground, whole bean blendstake our quality offering to anotherlevel," said John Ponczoch, senior vicepresident of food marketing and oper-ations for TA.

    CHANGING TASTESSuch gourmet-style options are

    becoming increasingly important inresonating with customers. Youngerconsumers in particular preferespresso-based beverages with 16% ofthose 18-39 drinking them in the pastday compared with just 6% of those60+, according to a 2013 NCA report.

    NCA also found nearly one-third(31%) of consumers prefer gourmetcoffee, while traditional coffee con-sumption dipped to 49% from 56% in2012. Not only are younger consumersreaching for espresso drinks, they'realso more inclined to reach for icedcoffee.

    An August report by Mintel showedincreased customer demand for frozenand iced coffeesand not just in thehot summer months. More than justa passing fad, the trend reflects thechanging tastes of the younger genera-tion. Consumers 18-24 years old are farbigger consumers of iced coffee com-pared to older coffee drinkers. Overall,one in five (20%) U.S. consumers drinkiced coffee, compared to 38% of thoseaged 18-24 and only 11% of those aged55-64 and 5% of those aged over 65.Mintel also reported that 77% of icedcoffee drinkers perceive that drinking

    it makes them feel more productive atwork. Luckily for foodservice opera-tors, frozen blended coffees have a highprofif margin, estimated at around65-7Q%, according to Mintel.

    FRESHNESS COUNTSWhile new brews and a condi-

    ment bar of flavors are crucial formaking your coffee bar a destination,nothing compares to the importanceof a fresh cup of coffee. Equipment canmake all the difference in the qualityof your offering and whefher custom-ers return.

    Spinx sources all its equipmentthrough its coffee partnership withRoyal Cup, saving it the hassle of man-aging its own equipment. "The benefitof that is that we are constantly usingupgraded equipment," Weber said. "Inother chains that buy and manage theirown equipment, you go into their storesand you might see outdated equipmentthat looks old, and that impacts the pre-sentation of the coffee area."

    Spinx switched from glass pots tothermal dispensing units about twoyears ago. "I loved the glass pot pro-gram because you could tell right awaythat the coffee was fresh just by thesmell. But the response we've receivedfrom the thermal dispensers has beenextremely positive," Weber said. "Ithas also helped the stores because thethermal dispensers have timers onthem to ensure the coffee always staysfresh. It really brought us up to dateand the customers love it."

    At its largest stores, Spinx fea-tures eight different brewstypicallytwo dispensers of each coffee vari-etywhile its smaller stores typicallyfeature six dispensers in the morningand cut down to the house blend anddark roast in the off-peak afternoonhours.

    Its coffee bars make it clear to cus-tomers Spinx is a destination for coffeewith a 4-6-foot linear counter thatprovides plenty of space for multi-ple customers to service their coffeecups simultaneously. "Our cusfomersappreciate it," he said. CSD

    44 Convenience Store Decisions | December 2013 CSDecisions#

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