TCMBA #2 - The Real Crisis in Coffee
Over the last few years, The Coffee Price Crisis has been top of mind in the specialty coffee community.
Is this real? Yes.
Is this a challenge? Definitely.
Can this be solved? Of course.
But it requires innovation.
33 million American households use a Keurig.
That means 27% of the US is paying around $20-$40 per 12 ounces of coffee.
We don’t have a price crisis, we have an innovation crisis.
It’s time for specialty coffee to start taking the reins. To be creative, strategic, and think from the perspective of consumers.
Why do Americans buy K-Cups when they’re so expensive?
They’re convenient.
They don’t feel expensive, they feel worth it.
In fact, they’re so convenient, so easy to use, that consumers now can’t live without them. My uncle Dave has his Keurig right next to the door to his garage. He brews straight into his to-go cup and walks out the door. Now that’s easy.
And how does specialty coffee stack up?
It takes a long time (especially in the café) and is hard to find (most local brands aren’t available in places consumers already shop— Amazon, grocery, etc.).
It feels expensive (hello, $6 oat milk latte #freetheoatmilk).
Your excuse that customers won’t pay more for your coffee?
I’d say that’s both true and false.
✅ True because they won’t pay $40 per 12 ounce bag of whole bean coffee.
❌ False because they ARE paying $40 for 12 ounces of coffee brewed in a way that works for them.
We need to re-think the way we get there.
Quality, values, and mission do not have to suffer. You get to do this your way. That’s what’s so brilliant about innovation.
The catch? It has to be something consumers want.
So, how are we going to get there?
This is the first in a six-part series on innovation in specialty coffee. We’re going to explore ways to tease out what your next big thing could be.
This is about learning what innovation actually means. This is about taking action and applying these principles to your business.
Your first bit of homework is the following:
Ask yourself, what is your team good at? What’s the strongest part of your business?
Maybe your cafés have always been super dialed but your roastery is chaotic. Is the team in your coffee roastery happy and productive? Do you have the most transparently sourced coffee you’ve ever seen?
What we want is to find your competitive advantage.If you find this difficult, ask a former team member or a friend to help you see clearly.
Once you’ve nailed down what you’re best at, start asking: why?
How did it get like that? Was there a person, thing, place, or situation that served as the inspiration? Why? Why? Why?
Ask yourself "why" until you get to the absolute foundation. Until you find out where your competitive advantage came from.
You’ve gotta play to your strengths.
Your strengths are what you’re known for, where you’ll be the most creative, and where you’ll invest resources.
Plus, if you stay true to you and your business, you won’t have to worry about the competition. Your perspective will be unique. It’ll reflect you and your community.
Time to stop “keeping up” and start “leap frogging.”
That’s how we’re going to solve the price crisis. That’s how we’re going to survive a recession. That’s how we’re going to have fulfilling businesses.
Join me!
When you’re ready for help, here’s how we can work together:
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