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A detailed menu teardown and rebuild to deliver a profit driven balanced & attractive menu
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Thank you it has really helped me focus. My daughter constantly tells me I am underselling myself and you are right I need to have more confidence. I fell into the trap a little of letting customers dictate what we should sell when we took over the cafe (naive and lack.of experience) instead of having the confidence to take risks and establish our own identity with the menu ... hence why it became so big but you are right. I am going to take all your pointers and spend the next few weeks working on those and hopefully moving forward - many thanks!
Coffee Shop and Cafe Menu Design
Deciding what prices to charge can be a minefield, you may feel that you don't want to charge too much because it will put customers off, while on the other hand unless you charge enough to make a profit your business will not be around for much longer.
The irrefutable fact is that as an independent coffee shop it is impossible for you to compete on price by charging less than the big chains. They have got greater economies of scale and a more efficient supply chain that makes it impossible for you to charge less than them.
The truth is your customers don't want you to be cheaper they want you to be better.
They want to know that they are supporting a local independent business and pride themselves on the fact that the money they spend with you stays local.
So how do you go about setting your prices to ensure that your business is profitable?
There are many things you need to do, but the very first one is to work out exactly what each product costs you to make, without this costing exercise you will be working in the dark. Don't forget to include the cost of packaging in your calculations.
The next step would be to set a target margin percentage for each product group and do some competitor research.
To be able to charge more than your competitors whether they are the big chains or Great local independents you need to be able to justify this in the minds of your consumers. Each one of your products should ideally have a tangible benefit or what we call a + 1.
For something to be perceived as being better value without being cheaper it needs to; taste better, look better, be served better or be served in a nicer environment, these elements can all your +1.
Your objective should be to ensure that everything you sell has built in added value. There are certain things that the consumer has a high awareness of price, and these are called known value items and coffee is one of those items. The secret to being able to charge more is to differentiate your product sufficiently from the run-of-the-mill known value items.
One way you can do this is by having an excellent description as the name for your product rather than having the ingredient list. You should give your products names, for instances McDonald's Number one selling product is not a burger in a bun it is the Big Mac, the best-selling stout beer in the world is Guinness.
Appetising descriptions can differentiate and enhance the product themselves and lead to a 30% increase in sales.
For example, which would you prefer to buy? Chocolate cake or Grandma's traditional recipe chocolate cake?
Some other psychological things to be aware of when you're displaying prices:
These principles work as well on a wall hung menu board as a more restaurant style menu.
A lot of the big chains keep their menus simple, often not displaying everything they sell and as such focusing sales on their more profitable or seasonal lines.
As an independent operator don't be embarrassed about putting up your prices and think that customers will stop coming, be bold maximise your profit, and start reinvesting in your business to keep it ahead of your competition.
When you want help with your menu we can fix it...
"Andrew and Claire were a crucial part in my decision in opening my first site, I met them coincidentally (or by fate) about six months before I opened brew | twenty three.
They shared their knowledge, passion and advice with me as if they were opening their own site - they both genuinely cared (and still do). They continued to go above and beyond, responded to all my questions and gave me so many points to consider that I wouldn't have thought of.
I was extremely clear on my vision of brew | twenty three and Andrew and Claire never lost sight of that for me and adapted their processes tailored to my business.
Andrew and Claire are two of the most genuine, caring, patient and calming people I have worked with and I would recommend them to anyone opening (or thinking of opening) their own shop, no matter their vision. "
brew | twenty three - Birmingham UK
" My Wife and Business partner and I had an idea - to open a coffee shop but we had NO idea on where to start. Most people gave advice but it was not solid - it was based on a narrow perspective of what to do - there are really no guides for this kind of thing until we came across "The Daily grind" which established a step by step guide on what to do and think about - what is even more valuable is the ability to talk to Andrew and Claire about more specific details - the book is great but doesnt talk back - Andrew and Claire can.
They tailored their advice to our specific needs and their expertise covers a broad array from menus to social media. We have grown in the last 2 years and attribute that to the great advice obtained from Andrew and Claire and as we continue to grow they will be part of our plan.
Don't reinvent the wheel - learn from those that have already done it - that's Andrew and Claire."
Christian & Danielle Mortimore
Los Dos Cristianos - Florida USA
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