Learning from coffee sellers #4

The news that Cadbury is to open café style shops in the UK is further evidence of the strength of the food-to-go market.

Reports suggest that the plans were already advanced before Kenco owner Kraft Foods acquired the chocolate-making company. City analysts responded with scepticism, saying if it wanted to be in this market, it would be cheaper to buy an existing chain like Caffe Nero.

While 60 coffee shops are unlikely to make a major change in the way that Cadbury supports local shops, on the surface it is likely to be a distraction. Valuable management time will be diverted away from worrying about the pricing of countlines and promoting treats in a way that does not upset the health lobbyists.

For local retailers who are already selling hot drinks, the move by Cadbury could help to increase the innovation in the market, with new products to try out and new formats. Cadbury is likely to be closely studying shoppers in an effort to ensure that its cafés are innovative and not a novelty.

If there is a gap, you need to be watching to see what you can learn for your business. While we wait to see what the fuss is about, keep on innovating in your own shop.

Comments

Three secrets of great merchandising

Look at the ceiling and top wall of this McDonalds restaurant. There is a picture of two good looking healthy people having fun and some bright primary colours. Ask yourself what is the purpose of this picture? In the latest issue of Retail Newsagent in a feature on merchandising, Andrew Knight of RI tells its independent readers that they need to think about using sharp pictures of non-packaged products linked to people consuming goods. Perhaps this has been taken to the next level by the fast food chain - that is selling the feeling of being happy and healthy rather than the products. A second, related tip from the same feature is made by most contributors - it is vital to keep windows clean and clear of clutter. "I believe that less is more," says Roli Ranger, a retailer from Ascot, Berkshire. He has posters for promotions in between the windows that are regularly updated and discreet signs in the windows. Third, a highly visible well-stocked promotion at the entranc

Overcoming a price disadvantage

Planning for his speech at the Independent Achievers Academy last week, Theo Paphitis asked an assistant to buy a basket of six essentials from a Tesco, a Londis (independent operator in a symbol group) and a One Stop (Tesco's CTN/convenience chain). Tesco was cheapest by a big margin. Second came Londis. The most expensive was One Stop. Mr Paphitis understands the power of the supermarkets and he says the way to counter them is to focus on how to make the experience of shopping with you more relevant to shoppers or more enjoyable for them. John Heynan, sales director of Molson Coors, told Retail Newsagent at about the same time that occasional beer buyers will pay 13 per cent more for their beer in an independent convenience store, provided the retailer targets them appropriately. Tesco has carved itself out this 13 per cent head start. Looking at pricing, if Tesco is 100, then Tesco Express is 108, One Stop is 112, a good symbol group is 115 and non-affiliated independents

A sign of retail stress perhaps

It must have been four months since this window was broken in the Tesco Express on Pentonville Road and I simply cannot believe that it has not been fixed. This is the sort of lack of focus that independent shops usually get criticised for. The only purpose in sharing this image is to encourage those independents with high standards who are finding the going tough that they can do better than this.

nickshanagher

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