How to keep customers on-site for coffee

Whether it’s a morning routine, an afternoon pick-me-up or an evening social ritual, few things are as universally appealing as coffee. Sixty-five percent of respondents in Technomic’s 2016 Beverage Consumer Trend Report say they ordered a cup of hot joe from a foodservice location in the past month, and 59% say the same about cold coffee. Everyone has an opinion about what makes it good, whether it’s a low price, a unique blend or a friendly barista.

“Coffee is so personal. There are a lot of people that are Dunkin’ fans. There’s a lot of Starbucks people,” says James Dravenack, retail food service manager at Rush University Medical Center in Chicago. “There’s a variety, and there are people [who] are very sensitive about their coffee.”

When preferences are so personal, catering to everyone is a challenge. Plus, how do you keep customers buying coffee on-site rather than drifting out the door to that big-name coffee chain down the street?

Going local

“I try and build our coffee program around what’s going to satisfy the most people,” says Dravenack. After shuffling through different coffee brands over the years, he settled on a local coffee—Chicago-based Intelligentsia—to differentiate from the big chains. “We found that not only was it a very high-quality product, but it offered a unique point of difference. It also meets some of our objectives, as far as it’s locally roasted and also has a commitment toward sustainability and direct trade—those things that are part of our values [at Rush],” he says.

As part of an ongoing effort to support the local economy, Dallas-based senior living community C. C. Young has partnered with local roaster White Rock Coffee. Brewed coffee and specialty drinks made with White Rock’s freshly ground beans are served at the on-site cafe, The Point; the community’s fine-dining restaurant, 4833; and its more casual neighbor, Conley’s.

The price (and experience) is right

Since Rush operates as a nonprofit, Dravenack is able to take a boutique coffee product and price it competitively. “If you actually go to Intelligentsia on Randolph Street, it’s going to cost you $5 for a latte,” he says. “We’re able to offer better pricing, and we’re more affordable to our community and to our employees.”

At C. C. Young, price is a major factor when it comes to competition. “[With our residents], it’s not necessarily that you’re competing with Starbucks, because Starbucks is pretty expensive,” says Jim Long, director of dining services. “Our bigger competitors are McDonald’s, who are doing a nice coffee that’s less than a dollar and giving a senior discount.”

In response, Long has zeroed in on what he can offer that the fast-food chains can’t. “We can serve it in a porcelain cup with a saucer. That’s a look and a feel that I love to have,” he says. “We always want to re-create memories of home. A lot of people would sit around and have coffee at home, and we’re a faith-based community, so a lot of people don’t drink alcohol; coffee and tea is the social drink.”

Options for all

Dravenack’s seasonal offerings are inspired by industry trends, which he watches closely. “I saw a big push for the cold brew coming,” he says. “Up until now, we had just traditional iced coffee, which is popular, but the cold brew is definitely selling. I [also] feature specialty beverages every month, and now [customers] come to look for those items,” he says. Rush markets the new options via signage and email marketing.

A majority of C. C. Young residents prefer their coffee prepared simply—black and steaming hot—and often are surprised by the range of caffeinated drinks served at the on-site coffee shop and restaurants, Long says. Though not every resident takes advantage of the more specialty options, staff and visitors, from baby boomers to millennials, appreciate them. Coffee drinking now starts at age 13 in the U.S., according to a Restaurant Leadership Conference presentation earlier this year. “We hear from the people that come in on marketing tours or from family members, ‘This is really good coffee,’” Long says.