The coffee! Food-to-go is seen as one of the drivers of local store success for the next five years but McDonald's is now delivering a great product at a low price. While the City may be assessing the challenge that McCafés will deliver to Starbucks, for the local retailer the competition for footfall will be a challenge too! Footfall is the oxygen of retail and if your shoppers are chasing someone else's coffee, then you need to rethink your business plan.
True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...
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