Going Mobile: Can Your Open Store Benefit From the Use of a Mobile Unit?

How can I get my name out in the public? How can I get more customers into my store? These questions have undoubtedly entered your mind as a store owner at one point or another. John F Kennedy once stated in a speech “Ask not what my country can do for me, but what I can do for my country.” Now you may be wondering how that applies to me owning a store? The answer is simple; the country represents your customers. You want to drive traffic to your location, you want to increase your sales, but most of all you want brand recognition. To achieve this you must ask ‘not what your customers can do for you, but what is it you can do for your customers’.

 

The Cuppy’s Coffee Mobile unit may be just the ticket for you establish your customers and future customers. Face it, not everyone knows of your store and/or its locations. You have to remedy that. Go where your customers are shopping, go where your customers are celebrating, and go where your customers may be relaxing in the sun for the day. If they won’t come to you, you in turn will have to go to them. Mobile unit owners are having great success at community events whenever they attend. Some owners have even purchased multiple units in order to attend multiple events at the same time.

 

Increasing awareness of your services in your community should be one of the utmost goals as an owner. Advertising only reaches a certain target of the public whereas public venues may increase your chances of be noticed by more of a cross-section of the population.

 

If you want to improve visibility and think you can benefit from the addition of a mobile unit, contact your Franchise Systems Manager for assistance. Keep in mind there may be restrictions on owning and operating a mobile unit in your city or state. Here are a few questions you may want to ask yourself before proceeding.

 

·        Can I afford to add a mobile unit with my budget?

·        How will I use the mobile unit to increase visibility?

·        Do I want to use it just for events?

·        Do I want to set up a temporary location?

·        What laws or codes do I need to know before purchasing a mobile unit?

·        Where will I park my unit when not in operation?

 

There are more questions, but this list is a starting point in your decision to order a mobile unit. Creating community awareness and visibility will pay off in the long run and a mobile unit may be just one vehicle to get you there sooner.

A Letter From The President

Knowledge is power as the old adage goes. Information about the coffee industry is very abundant. With the growth of the internet, sources for information on any given subject is just a click away.

Materials for promoting and marketing your store successfully can be found on numerous web sites (Entrepreneur.Com; StartupNation.com). I encourage you to research this information. If applicable, why not implement the strategies from today’s brightest minds?

 Another source of marketing information can be found at our corporate headquarters. Our Marketing Department stands ready to assist you with any questions you may have or to go over your suggestions. But one of the least tapped sources for information is your employees. Face it, they’re there in your store everyday and may have suggestions to bring in the customers. Listen to them, your employees may be the best thing to happen to your location.

Another source may be the very people you are marketing to, your customers. Countless ideas and strategies are ‘out of the mouth of babes’.

Your continued success goes hand in hand with your continuing education about this fun and dynamic industry. Happy researching

 

Doug Hibbing

President

Cuppy’s Coffee, Smoothies & More

McDonald’s Foray into Specialty Coffee

     The McCafe. The McDonalds® hamburger empire has for some time been interested in serving espresso based drinks in its stores. This year there has been considerable press concerning the financial impact this venture will have on the specialty coffee industry. Although mainly targeted at Starbucks® the nation’s leading coffee company, the questions still begs to be asked: How will McDonald’s venture into the specialty coffee industry affect your store sales?

      McDonalds has always had a very lucrative morning breakfast rush with coffee accounting for 5% of the ticket. Their coffee has somewhat been palatable to the consumer in a rush to get to the office. But with more and more consumers willing to spend the extra money for a premium coffee, McDonald’s tactics makes for a very good reason to capitalize in this segment of the coffee industry. In a recent interview in the The Atlanta Journal-Constitution columist Leon Stafford asked Don Thompson, president of McDonald’s about their venture into the specialty coffee arena:

Q: McDonald’s is upgrading its coffee products, rolling out more

premium blends. Some have even speculated that McDonald’s could be taking on Starbucks. What are your thoughts?

A: Espresso-based drinks [are] a huge market opportunity. Our efforts in this arena are not focused on any competitor. What they are focused on are our customers and what their drinking habits are. And when you look at the espresso-based drinks, it is a category that is growing tremendously.

   The remaining interview focused mainly on McDonald’s business strategy and relationships with its vendors. It may be to early to gauge the impact that this move will have on smaller coffee shops around the country. But the announcement may have impacted stock market shares for both McDonalds and Starbucks.

      Other analysts and consultants have a different take on McDonald’s move. In an online interview with columnist Kristen Cole for WCBSTV.com Judy Ganes had this to say:

     “For the consumer it’s a win-win,” said coffee consultant Judy Ganes. “There’s better coffee at more locations.”

     Ganes tracks production and pricing of coffee and says Starbucks first poached from McDonalds’ playbook by offering drive-thrus and breakfast and lunch. Now the roles have reversed.

    “McDonalds is hoping this brewing competition will add a billion dollars to its bottom line and is also promising consumers their coffee will cost 60 to 80 cents less,” she said.

     But one thing is for sure, consumer’s will have more choices for its specialty coffee needs. To compete for those choice demands, smaller coffee shops will need to start building a loyal customer base today. When McDonalds roles out en-mass its McCafes, coffee houses will have already established their customer base. As the novelty of the McCafe wears off, this will be one of the best opportunities to fill a void left during and after the Starbucks/McDonalds battle for coffee dominance.

     Creating an atmosphere where your customers want to be is very easy to obtain. Customers want to feel special, make that happen. Get to know your customers by their first name and their choice of coffee. Customers want a quality cup of coffee for the prices they’re paying. Other ways you can build and keep your loyal customer is to educate them to the subtleties of espresso based drink. Today’s connoisseurs are more than eager to take in information about what’s going into the preparation and production of their coffee. Offer your customers loyalty cards for their patronage. It doesn’t have to be a lot, it’s the gesture that makes all the difference. Select a few loyal customers and teach them how to make an espresso based drink. Occasionally offer a class on the nuances of coffee in your store.

     The ideas to build and sustain a customer base are numerous. Acting now will ensure that whenever McDonalds does roll out their national cafes, you will have already secured your niche in this competitive market.

A LETTER FROM THE PRESIDENT

As a teenager and then as a young adult growing up in a small Iowa town, I wore the popular fashions of that time period. As I got older I realized that in order to be successful and compete in my chosen field that change was needed.

Today, change and innovations are expected in this diverse and dynamic economy we live in. With the new direction and marketing concepts we’ve initiated, we’ve taken a long hard look at our company and have come up with some fresh and innovative ways to increase our visibility and brand image.

Our cups, you will soon see, have changed. Today’s consumers are more earth conscience. Our cups are made of recyclable material to help combat pollution and environmental waste. Another benefit  is that our new cups are used for both hot and cold drinks, saving you money. This decision to be more earth friendly, is undoubtedly one of the best decisions I’ve made as president.

But what is change without updating? Look for our new and improved company logo. The decision to improve our logo increases our visibility with consumers and will help to build Cuppy’s Coffee, Smoothies & More into a nationally recognizable brand. 

Bellbottoms, big hair and polyester have passed, hopefully not to return anytime soon. Being more earth conscience, recycling and increasing our visibility with our logo will help us all to compete and prosper for today and tomorrow.

Doug HibbingPresident

Cuppy’s Coffee, Smoothies & More

Cuppy’s Coffee Franchise System Managers – Your Coach, Your Mentor, Your Best Friend!

Calling into a company to get answers can sometimes be a daunting task itself, from being put on hold or being shuffled around the office to get the correct answer. Maybe you reach a person only to find out the information given you is not the right answer you were seeking. Medina’s Franchise Systems Managers (FSM) are here to make sure that doesn’t happen to you.

The advantages may not be easily recognizable at first, but your FSM will work to your benefit. The FSM’s are trained in every aspect of the franchising process and will guide you through from beginning to end. One advantage of having a personal FSM is that you only have to make one call; speak to one person to get the answers you need. This is a key factor in saving you time and trying to remember which department or person you need to reach. FSM’s realize that you have enough contacts to keep track of and as a business owner your time is valuable. Everyday your FSM works towards being your “one stop shop” for all the questions and answers that arise while opening your store. Another advantage is the relationship you and your FSM establish will lead to a long lasting friendship. A friendship developed by working closely together to see your dreams come true.

Your personal FSM is the angel on your shoulder from coordinating with your Real Estate Specialist and Elite Project Managers to your building delivery. Need answers about purchasing, marketing or field training your FSM is trained to get you the correct information you’re looking for. Your FSM will be there every step of the way to answer your questions and concerns.   During the process of opening your business questions, problems or unforeseen events may arise, your FSM is your “go to person”.

Communications plays a key factor in your relationship with an FSM. Being in constant communications with your FSM will ensure that you’re always in the loop regarding new marketing ideas, new products and exciting events happening in the franchising community. Importantly, being open and honest will help assist you in areas that you feel are important as well as keeping the amount of information flowing in both directions to getting your store open successfully.

New CFO Joins Medina Enterprise Executive Branch

Medina Enterprises, a Fort Walton Beach based holding company, announced today the newest addition to its executive management team with the hiring of Don Ochsenreiter as Executive Vice President and Chief Financial Officer. Ochsenreiter brings significant financial and operational leadership to Medina Enterprises. With Medina anticipating tremendous future growth, Ochsenreiter’s primary objectives are to establish optimal capital structure for the company to facilitate its imminent growth, and to help Medina achieve this growth building a solid financial foundation.

Before joining Medina, Ochsenreiter was President and CEO for Burton Golf, Inc. for the past 13 years. At Burton Golf, Ochsenreiter repositioned and grew the leading golf bag brand to the number one market share position in golf course shops worldwide. Before recently selling the company to a strategic buyer, he managed every aspect of the company through operational and industry change. Ochsenreiter holds a B.A. in economics from University of North Carolina at Chapel Hill and an M.B.A. from the McCombs School of Business at the University of Texas.

Problems in Franchising: Avoid these Costly Mistakes

It takes a lot of money to build a business, and you certainly don’t want to waste any. Check this list of 7 costly mistakes to avoid.                                

1. Letting emotions rule. Falling in love with a franchise concept is a common mistake. Don’t let your emotions guide your decisions. Use your head, do your due diligence and take the time to thoroughly investigate the franchisor’s offering.

2. No professional team. Don’t try to do your own financials, contract reviews, or negotiating. The cost of professional franchise attorneys, accountants, and advisors is money well spent.

3. Too little cash. Lack of capital is the number one reason franchisees fail. Item 7 in the UFOC will tell you how much money you’ll need with a low and high range. Be smart-go with the high range. Then ask current franchisees if the numbers are high enough.

4. Penny wise and pound foolish. Choosing one franchise over another because the initial franchisee fees are lower is shortsighted. It assumes that all franchises are alike and nothing could be further from the truth. Choose the franchise with the proven concept and strongest track record.

5. Too much help. Payroll is the biggest part of overhead for most franchise businesses. New franchisees often hire too many people or pay too much in wages. A good franchisor will provide a good staffing plan. Stick to the plan.

6. No comparison.  Never buy expensive equipment, supplies or inventory without shopping around first. Even if your franchisor offers group purchasing, do your own research, shop as many vendors as you can, consider aftermarket suppliers, and weigh different financing options (loans or leases).

7. Marketing blunders.  As a new business owner, you’re going to be targeted by every ad salesperson around. Ignore them. Follow your franchisor’s marketing plan to the letter to avoid wasting thousands.

Editor: The Problems of A Cuppy’s Coffee Newsletter

Company newsletters throughout the business world have a key element or theme about them. That theme or purpose of the newsletter is to motivate its employees to be more productive. At the Bean Street Journal, a Cuppy’s Coffee’s newsletter, as Editor I want to move beyond motivation. The purpose and main editorial thrust of this company wide publication is to educate and inform franchisees as well as the staff of Cuppy’s.

As a parent of a teenage daughter, I learned early in my homeschooling days that in order to sometimes inform or educate the best route is to entertain to get the point of the lesson across. This worked well with my daughter, but will it work with adult business people?

Therein lies the problem with a monthly newsletter. Will the information and content of the newsletter educate the readers? Will it also entertain and keep the reader flipping thru every page? As editor I hope this is the case, but as a writer and contributor the crux of any writing is will the readers enjoy it? Will my passion for fiction interfere with the nonfiction topics of business? This is always a concern.

Before the release of any newsletter, I enjoy receiving feedback from the staff of Cuppy’s. This pre-screening by a 100 pair of eyes, always catches the errors I may have made in producing the newsletter. For this I am thankful.

As for the reader I do hope that you enjoy the newsletter and are educated by the contents. Your feedback and suggestions are always welcome at the Bean Street Journal.

~Editor

Cuppy’s Coffee: Pitfalls To Avoid In Business

  Running a successful business can be daunting. Several factors play a key role in the success of your business such as patience, passion, knowledge of your industry and determination. There are others, but there are more ways to fail than there are to succeed. Take a look at the following pitfalls and the subsequent topics to follow, and see if they may apply to you . Any one or combination of these pitfalls will be reflected daily in your attitude and the way you approach the next day’s business.  If you find yourself party to any of these pitfalls, don’t worry, we have a way for you to turn it around.

Conversation Curses    

Having the wrong conversation can do more harm than good in making you feel better. As humans it is our nature to want to vent our frustrations from the highest mountains we can find. And while on that mount the wrong words can be like a rolling stone on an unending hill to disaster. Today’s society tends to relish all that is wrong or negative. The effect is contagious and detrimental to most businesses just as in this example. In the 80’s a certain franchise, which we won’t mention here, gained national notoriety in the press from the conversations and correspondence that occurred between disgruntled franchisees. It took that company years and cost millions of dollars to regain the respect of the public for its brand. These franchisees had a bad case of ‘Loose Lips’ which eventually led to many of them closing their doors, not to mention, losing their hard earned investments. This downward spiral even damaged the franchisees that were making a financial windfall and had no party to negativity that was unleashed by others. That was not the intention but once the cat was out of the bag it was hard for many of them to recover. Another example how negative press and today’s events can hurt your business, how many of you will check your toys for the label “Made in China”?    

Your company image and brand is, and should be, very important to you. How do you want your target market, customers and your community to perceive your franchise? Protect it. Talking or corresponding negatively about your experiences or hardships will result in a decline of customers walking through your doors. With the invention of the internet, email and text messages a shot can now be heard around the world faster than you can say “Loose Lips Sinks Ships”. Speaking negatively with your employees will not only lower their moral they too will become discouraged and not give the customer service you expect hurting your business further.     

The effects are numerous. So to counter that, it is wise to always build up your business by giving positive comments, correspondence and attitude even when things seem their worst.  You only hurt yourself when you speak negatively of your company, vendors and customers. Name recognition will have a lot of weight on the success of your location. You can be a part of the success or that shot heard around the world. 

Bad or No Customer Service    

     The enthusiasm has worn off. You look at your customers more like a life line than a person. Without realizing it you’ve stopped noticing the very people who are making your business successful. It’s become a JOB. You’re wondering why you can’t make ends meet or why it that you don’t have more customers. 

      The answer may be in you and your employee’s customer service skills. Taking a few minutes each day with each employee and explaining the importance of customer service can turn this pitfall around. A simple smile, a warm thank you or maybe an acknowledgement of their presence are simple techniques that will make anyone feel comfortable in your store. And more importantly make them want to return with their friends. Your customers will reward you by telling their friends and neighbors about the wonderful experience they received at your store. Are you providing your customers with the service they need? If you know who the customer is, call them by name. Are you building a loyalty relationship between you and your customer? Offer your customer a discount or reward for sending a friend in to sample your wares. Create a service award program or contest among your employees. Want your baristas to give great service? Reward great service. Create the legends, spread the word. When your employees see praise and rewards for great service, pretty soon they are trying to one-up the others and become the next service legend. What will your customer say? “Wow! See you tomorrow!”

When Your POS System Goes Your Customers Don’t Have To – Cuppy’s Coffee

Your morning rush is looking very promising and you expect the rest of the day to be as good, but then your POS systems decides it’s time to take a nap. Losing your POS doesn’t mean you have to take a hit in the wallet until its repaired.

Several tips below will ease you through the process until you’re back up and running. Keep a checklist on hand for all your employees to reference is case of emergencies.

Check the power plug-in and wires to terminals. A cord could have been pulled accidentally between orders.

Inspect the breaker. While one employee checks the breaker one should be monitoring the system to see if a breaker may have flipped. Ideally you should have all your breakers tagged as to which breaker goes to what equipment.

Restart the terminal. This may sound simple but every employee should know where the power button is.  If the machine is working, make sure credit card readers are back online. Most systems today back up their sales data to the hard drive every 10 minutes.

Call for help. Call the manufacturer for help if the above tips fail to reboot your system. Keep the number of the manufacturer close to the terminal as well as all other emergency numbers. Make sure all your employees know where to find these numbers.

Move into manual mode. Keep a calculator, manual credit-card swipe and guest book handy in case of emergency. Your baristas should know all prices and how to charge the correct taxes. Have your best order taker move outside to drive lanes to take orders to help move your customers forward.

Let customers know there’s a problem and their order might take a few minutes longer. Customers appreciate knowing the truth. Usually they’re pretty sympathetic. Most people say, ‘Oh, I have a computer at home and at work and they crash all the time.’ Most people are willing to wait in that situation when they understand you’re doing the best you can.

Keep a lower tech cash register handy. It’s always nice to have backup in a tight spot. Why not keep a plug in cash register tucked away in case your web based POS system decides to crash. Most low end cash registers can be purchased for $100.

Plug into a battery backup. Today’s computer based businesses know the value of the battery backup. This can get you through the rush or even the day until your system can be repaired.

Being prepared for any emergency can make the difference between saving the day and losing more than your POS.