Coffee Shop Furniture
Friday, June 25th, 2010
The Coffee Business Opportunity In Challenging Times
Recession. Mention it out loud and some business people start to talk about down-sizing and belt tightening. Then other business people see this reaction and start to do the same. I mean, isn’t it only common sense that come the recession, everything has to come to a halt? All wagons should be circled? All hatches battened down?
During the last recession – what I like to call the ‘big recession’ – in 1990, I was running a coffee shop franchise. People filled the tables and chairs. Muffins were consumed and coffee continued to flow – people were even forcing me to extend the use of my espresso machine by their increasing desire for cafes au lait (soon to be replaced by lattes once the recession had passed – perhaps because of the close association of the poor ‘au lait’ with tough times, I suppose). But I digress. The point is that the recession passed over my business (and those of most of my fellow franchisees) as a non-event. In fact, in some instances, revenues and profits actually increased.
Despite this relative prosperity, we all knew that we were in the midst of a recession – though we were not affected by it. But there was still this general economic downturn and we all knew what we had to do. Tighten our belts. Downsize. Become more hands-on in the day to day operation. This was the smart thing to do. Wasn’t it?
The Coffee Business in Tough Times
“Once I built a railroad, I made it run, made it race against time.
Once I built a railroad; now it’s done. Brother, can you spare a dime?
Once I built a tower, up to the sun, brick, and rivet, and lime;
Once I built a tower, now it’s done. Brother, can you spare a dime?”
“Brother, Can You Spare a Dime,” lyrics by Yip Harburg, music by Jay Gorney (1931)
“Brother, Can You Spare a Dime”, was a popular recession era song. It’s obviously about a guy who’s down on his luck and is begging people for enough money. The song never reveals the intended purpose of the 10 cents, but it was widely interpreted to be for a cup of coffee. And this is revealing in that it shows the depth of people’s connection to a cup of coffee served in a diner.
To some extent, this is what happened in the early 90′s. People, forced into cutting back on the larger luxuries, were still able to afford a cup of coffee. And since a cup of coffee or a cafe au lait were two of the few luxuries people could enjoy; and because they were so inexpensive, people increased their weekly indulgence of them. Customers who I was used to seeing only during the mornings, began showing up in the evenings for a decaf au lait. My revenues and profits increased throughout this period; all the while I was putting in extra hours because of the fear of recession.
The Rest of the World in Tough Times
While I had my nose to the grinder, major events were being played out all around me.
In an effort to stimulate the economy, central banks were lowering interest rates. Hoping to save those players that were still in the game as well as attract new players. Interest rates were much lower than when I bought the franchise. On top of that, it seemed that each week brought new announcements of government efforts to help us out. Tax cuts. Small business grants. Subsidies for labor costs.
While this was happening, many of my suppliers froze or cut their prices. Replacing furniture and fixtures became cheaper. As did repairing and replacing equipment. And quite often at terms that allowed as much as 24 months to repay.
And if you didn’t want to deal with a wholesaler, there were always the auctions where prices could be much lower. Our business cousins, the restaurants were falling like flies. Restaurant equipment was everywhere and dirt cheap too.
The Upshot
The recession of the late 80′s and early 90′s was, like all economic bottoms, a time when ‘Cash was King’. If you had cash you could take advantage of the tax cuts, and wage subsidies. You could take advantage of the lower interest rates. You could take advantage of the lower costs and higher unemployment rates. If you were flush, then it was a time for expansion not down-sizing. I expect that this downturn will present the same opportunities. It is a time to be realistic about our personal economic situation and to ignore the negative hype about the economy. I believe that it is a great time to be in(or if you have enough cash, to get into) the coffee business and a time to grab even a greater share of it.
About the Author
I am a former coffee shop owner. I currently consult with small businesses on a wide range of issues, from how to integrate software applications with their business processes, to how set up coffee carts. For more information on the coffee business, please go to:
http://www.92degrees-c.com
Coffee & Coffee Shops : About Coffee Shop Furniture
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Milen Handy Caddy – Black $5.47 As Seen On TV, Handy Caddy, Small Counter Top Appliance Roller Tray, Allows Easy Of Movement Of Coffee Makers, Toasters, Mixers & Other Counter Top Appliances With Out The Hassle Of Lifting & Dragging The Appliances Out From Under The Over Head Cabinets, An Easy Solution To A Real Problem…. |
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Coffee House Cup Java Silhouette Wall Art Metal Mug $10.95 Hang this fun stack of coffee cups in the kitchen for a fun bostro look. Light metal black finish cut out coffee cup design is perfect for a whimsical decor accent. Easy to hang and will enliven any bare spot you have in the kitchen…. |
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Fred & Friends Tank Up $6.37 Running on empty? Well, fill ‘er up with the hi-test beverage of your choice and watch the gauge climb all the way to the Full mark. No it’s not magic, it’s just awesome heat-sensitive printing !… |
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Belkin Mini Surge Protector Dual USB Charger $12.99 Protect your electronic devices while traveling…. |
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Belkin Conserve Socket with Energy-Saving Outlet $24.98 Conserve Smart AV Auto-Off Surge Protector. Now you can automatically turn off up to five entertainment system ponents when you turn off your TV and easily reduce standby power. The Master Outlet senses when your TV is on or off and controls power to five peripheral outlets for your AV ponents. Two outlets stay on for devices that need continuous power like DVRs. Control power to your whole entert… |
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Minwax 63490 1/3-Ounce Wood Finish Stain Marker, Ebony $4.13 Traditional Minwax stain in a convenient marker applicator. Ideal for touch ups on furniture, kitchen cabinets, molding or other interior wood surfaces. Also good for small projects or projects requiring precision or staining in hard to reach areas. 1/3 fl. oz. Exact matches to the 8 most popular Minwax stain colors…. |
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Guardsman Furniture Touch Up Kit $2.99 Nicks, marks, scratches, the inevitable results of living with wooden furniture. But you don’t have to strip and refinish when the damage is minimal. Get out your handy touch up kit and dab the pen along the mark. There are three colors so you’ll be able to get a very convincing match easily…. |
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Coffee Shop Scent – Home Fragrance Oil $10.00 Light up this scent and it’s as if you’ve just stepped into your favorite coffee shop! Espresso, Mocha, Creamy Vanilla and Hot Chocolate combine to make this rich scent. Use in the kitchen or home office to stay revved up and alert all day! Shipping Notes: -Flat rate shipping on your entire order. -Fragrance oils must ship Fedex ground due to U.S. postal regulations on flammable liquids…. |
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OmniMount Echo 50 – 50 Inch Video Table – Espresso $199.95 Acmodates up to 63 flat panels and 65 DLPsOpen area acmodates multiple ponentsComponent shelf supports up to 80 lbs.Open area acmodates multiple ponentsNeatly route and organize wires through cable management channelChrome legs accent dark finishRubberized feet protect floorsComponent shelf supports up to 80 lbs.Chrome legs accent dark finishTop shelf supports up to 150 lbs.50″W x 17″H x 15 D… |
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Linon Sutton Black Media Tower $271.00 Finish:Black Large drawer Ample shelving allows you to store your electronics and media in style Some assembly required… |
