Fueling all-day sales with on-demand coffee, snacks

Sponsored by Smucker Away from Home

Consumers are drinking coffee throughout the day. And they’re snacking more than ever before.

Those two trends add up to a lucrative opportunity to sell coffee and snacks together in the healthcare, college and university and lodging markets.

As a result, operators are upgrading the quality and variety of their coffee and making it more available all day. Many are employing on-demand coffee systems which serve high-quality hot and cold coffees — including specialty and iced coffees — with low labor and equipment costs and virtually no waste.

Operators realize that coffee is much more than just a popular hot breakfast beverage. It is also an afternoon and evening revenue driver — especially in its cold forms — and when menued together with complementary foods.

The synergy of coffee and snacks

Rising consumption trends underscore the business case for upgrading coffee. To begin, 64 percent of U.S. consumers drink coffee daily, up from 57 percent in 2016, according to the 2018 National Coffee Drinking Trends (NCDT) report by the National Coffee Association.

In addition, 48 percent of millennials drink gourmet coffee every day. Also noteworthy is the emergence of gourmet coffee beverages that are not necessarily made from espresso. NCDT reports weekly consumption of 13 percent for frozen blended coffee, 11 percent for cold brew coffee and 4 percent for nitrogen-infused cold brew or iced brew coffee.

Factor in the growth of coffee consumption with the surging snacking trend, and the sales opportunity comes into clearer focus. Ninety-one percent of consumers snack multiple times each day.¹ And almost anything — including a beverage — can be considered a snack these days. Iced coffee is very often consumed as a snack, especially in the afternoon when it peaks.²

All-day pairing opportunities

Research shows opportunities to promote various types of cold and hot coffee in the morning, mid-morning and afternoon dayparts.

Consider how consumer consumption behavior aligns to dayparts for some of the most popular coffee beverages: 

Source: Technomic’s 2017 Away-From-Home Beverage Marketplace

Consumption at breakfast vs. mid-morning/afternoon is inverse! This underscores the importance of tailoring beverage offerings and promotions to the right daypart to maximize customer appeal. 

For hot coffee occasions, the top foods consumed are strongly associated with breakfast:²

• Eggs, 20 percent.
• Breads/rolls/tortillas, 20 percent.
• Common breakfast items (pancakes, waffles, toast, cereal), 14 percent.
• Fruit/fruit snacks, 12 percent.
• Dairy products other than cheese (milk, yogurt, etc.), 12 percent.

Iced coffee displays more versatility than hot coffee across various types of food, and is significantly more likely to be consumed with the following:²

• Cheese, 18 percent.
• Bars, 16 percent.
• Crackers, 12 percent.
• Chinese food, 11 percent.
• Potatoes, 10 percent.
• Sandwiches, 9 percent. 

Convenience sells in colleges and universities

Some of the most enthusiastic coffee fans are found on college campuses. To meet the demand, college and university operators are establishing coffee bars and on-demand coffee stations in high-traffic areas.

For example, University of Central Florida students refuel, study and socialize in a coffee shop inside the university bookstore. At the University of Massachusetts Amherst, the Procrastination Station satisfies java cravings in the library. And at the University of California Santa Cruz, scholars patronize handy coffee bars in the lobbies of three academic buildings.

Boosting satisfaction by the cup

In healthcare facilities, coffee bars and stations are convenient amenities for patients, visitors and staff as well as revenue drivers. More operators are realizing that good coffee and food enhance patient and resident satisfaction. 

At Texas Children’s Hospital in Houston, families of patients don't have to go far for a coffee or snack break. A cart in the main lobby sells coffee, sandwiches, salads and pastries, while another cart roams patient floors with similar offerings. Three additional hospital outlets feature fresh coffee and food items. Moreover, complimentary breakfast coffee and pastries are offered in the family room areas of inpatient units.

Many senior living operators are upgrading their coffee programs as well to provide “coffee shop-level drinks” such as iced coffees and flavored espresso beverages.³

Catering to lodging guests

Hotel operators likewise recognize the synergy of coffee and snacking. They realize that high-quality, convenient, on-trend coffee and snacks boost guest satisfaction and repeat stays, as well as revenue.

On-demand coffee systems are effective solutions for room service and complimentary breakfast programs. In addition, an on-demand coffee station in the lobby helps guests get off to a fast start in the morning.

Many hotels are expanding coffee and snack options to cater to time-pressed travelers. At the New York Hilton Midtown, the Herb N’ Kitchen outlet features a barista zone with nine coffee selections — ranging from espresso to mochaccino to iced coffee — for guests to enjoy on the go or in house.

The Select Brew advantage

The Select Brew® Coffee System is an on-demand coffee solution that makes high-quality hot and iced coffee convenient and accessible to customers without high training costs. Key advantages of Select Brew include:

Variety
• Hot, iced and specialty coffees on-demand
• Premium and mainstream brands
• Roasts that fit your guests’ preferences

Sanitation
• Clean in-place coffee dispenser enables more sanitary and safe experience
• Clean and sanitize in less than 5 minutes per day

Simplicity
• Minimal labor with maximum productivity

No Waste
• Single-cup personalization without all the packaging waste
• No grinds spilling or pilferage

Consistency
• State-of-the-art computerized dosing mechanism
• Beverages with consistent, reliable flavor

Serving the growing number of consumers who enjoy coffee and snacks throughout the day is a lucrative business opportunity. Upgrading the quality and variety of coffee with an on-demand brewing system is a critical first step toward success.

For more information about ways to optimize the coffee and snacking opportunity, contact Smucker Away From Home at www.smuckerawayfromhome.com or (877) 693-6543.

Sources:

1) The Future of Snacking 2016, The Hartman Group.
2) Coffee in the U.S., July 2018, Mintel.
3) Creative Concepts: The Changing Face of Senior Living Report, Datassential.