Hey, team!

In this week’s edition of finding ways to offset those high coffee prices, we’re diving into the art of diversifying revenue streams.

Let’s face it, relying solely on coffee sales can be tough for coffee shops to stay profitable. So today, we’re going to explore some creative ways to expand our offerings and open new revenue doors!

Okay, we know this may not be the most groundbreaking idea, but hear us out—it’s one of the easiest and most effective ways to increase your bottom line. By adding food items and non-coffee beverages to your menu, you not only provide more options for your current customers but also attract a wider audience, including those who may not be coffee drinkers (yes, they do exist!).

From fresh-baked pastries to artisanal sandwiches, food is a natural complement to your coffee offerings. Adding a variety of food items to your menu helps attract customers who might not have been planning on a coffee run but are looking for a tasty snack or meal, boosting your sales potential throughout the day.

Food also tends to have solid profit margins—especially if it’s made in-house—helping to stabilize your income and create consistent traffic. Even better if you can offer a signature product that becomes synonymous with your shop.

Imagine being known for the best cinnamon rolls in town—who wouldn’t stop by for a Saturday morning coffee and a sweet treat? Or a post-work combo of a specialty drink and a fresh salad? The right food pairing can do wonders for attracting more customers and setting your shop apart from the competition.

Teas, matcha lattes, turmeric drinks, smoothies, and fresh juices—there’s a world of non-coffee beverages waiting to be added to your menu! These options not only cater to those looking for a caffeine-free alternative, but they also open your shop to an entirely new customer base.

The best part? These drinks often have great profit margins. With lower base ingredient costs compared to traditional coffee drinks, you can offer high-quality beverages at a price that benefits both you and your customers.

It’s highly likely that a large portion of your customers have kids, pets, or—if you’re lucky—both!

More and more coffee shops are tapping into the growing trend of catering to our four-legged friends and little ones with menu items like “puppuccinos” (whipped cream for pups) or “babyccinos” (steamed milk with a dusting of cinnamon or squirt of chocolate).

These low-cost, low-maintenance items can be a game-changer in building customer loyalty. Whether it’s a child-friendly drink or a special treat for your furry companions, these options are easy to make, budget-friendly, and can go a long way in building a loyal, diverse customer base.

How about something that can really set your coffee shop apart: experiences! Beyond just serving food and drinks, offering fun, engaging activities can turn your shop into a local hangout spot, a place where people not only grab a coffee but come to connect with their community. These experiences don’t just bring in extra cash; they also help build loyal customers and attract new ones!

We all love our regulars, but let’s be real—it’s hard to expect customers to buy their favorite $8 specialty latte every single day. That’s where you can step in to fill a knowledge gap in an exciting way!

Why not offer brewing classes? Customers can learn how to perfect their at-home cup of coffee through various extraction methods or even try their hand at latte art or pulling espresso shots!

You could also host coffee tastings where people can explore different beans and roasts. These events are not only super fun and educational, but they also help deepen your connection with customers, heighten interest in coffee, and make your shop the place to be for coffee lovers!

Who doesn’t love a good trivia night or themed event? These are perfect for turning your coffee shop into a lively social hub. You can host everything from book clubs and game nights to coffee-themed discussions.

It’s a great way to get people to hang out, enjoy a good time, and—let’s be honest—spend a little more while they’re at it. You could charge a small entry fee, entice attendees with food and drink specials, or simply enjoy the extra revenue from a larger crowd.

If you can, make these events a regular thing—maybe weekly or monthly. It’ll help you build a loyal customer base and make your shop the go-to place for community hangouts!

Live performances – local bands, open mics, or slam poets—are a fantastic way to draw in a diverse crowd and engage your community! 

Bringing in local talent for performances attracts fresh faces and gives your regulars something new and exciting to look forward to. You could lean into your city’s culture and choose events that reflect what your community loves. Plus, it creates a fun, welcoming atmosphere where people are more likely to spend time and money.

If it’s an evening event, consider offering a specialty cocktail menu (if local laws allow) to add some extra flair and make it even more special.

Feeling stressed? Chances are, your customers are too.

Wellness events are a great way to tap into this and create something meaningful. Think about offering yoga classes, mindfulness sessions, or even more unique experiences like art therapy or tea ceremonies.

Imagine a group of people jumpstarting their day with power yoga and a refreshing cold brew—or winding down with meditation and a calming cup of herbal tea.

These events not only bring in more revenue but also contribute to a healthier, happier community that sees your coffee shop as a place of relaxation and rejuvenation.

Like I mentioned before, it’s hard for customers to sustain $5-10 per day on coffee. So help them recreate their favorite coffee drinks at home! Offering DIY coffee kits or a subscription service can provide an additional revenue stream while also expanding your brand’s reach beyond your physical location.

Build-your-own coffee kits are a fun, interactive way to get customers excited about their coffee at home!

These kits can include everything from coffee beans, syrups, and spices to milk frothers and even brewing equipment. You could let customers customize their kits based on what they love—whether it’s a bold espresso or a creamy latte.

These kits work great as standalone purchases, or they can be packaged as gift sets for holidays and special occasions. And to add even more value, consider pairing the kits with that brewing class we talked about earlier to help customers make the most of their new gear!

Coffee subscriptions have really taken off, and for good reason! Many customers love the idea of having their favorite coffee shop’s beans available in the comfort of their home. Plus, as we mentioned in the last newsletter, it’s a perfect way to make use of extra beans in your storeroom.

Consider launching your own subscription service where customers can receive a regular supply of beans, handpicked by your shop. You could offer different subscription tiers, like a monthly selection of single-origin coffees or even exclusive limited-edition roasts to keep things fresh and exciting for your subscribers.

What’s a coffee shop without that cozy corner full of your shop’s swag, local goodies, and coffee accessories? It’s time to get a little commercial and offer some physical products for sale!

Coffee lovers love to show off their favorite spots, so why not give them the chance to rep your shop with branded items?

Think mugs, apparel, tote bags, stickers, and even cool coffee accessories. These products not only bring in extra cash but also double as marketing tools when your customers wear or use them out and about—spreading the word about your shop wherever they go.

And don’t underestimate the power of the gift card! They’re a great way to bring in upfront cash, attract new customers, and encourage people to spend a little more. Plus, we won’t complain about those unredeemed balances.

Another great way to mix things up is by selling locally crafted goods, like artwork, candles, jewelry, or even gourmet treats.

Not only does this give your customers something unique to take home, but it also supports local artisans and strengthens your connection to the community.

People love buying one-of-a-kind items, and this approach fosters a deeper sense of connection between your shop and the neighborhood.

Coffee shops are known for their cozy, inviting vibes—so why not make the most of that and rent out your space? It’s a great way to increase your revenue while turning your shop into a true community gathering spot.

With so many people working remotely these days, offering your coffee shop as a coworking or meeting space during slower hours can bring in some extra cash.

A quiet spot for freelancers, remote workers, or small business meetings can attract a steady flow of customers who appreciate a peaceful place to work—plus, they get to enjoy quality coffee while they’re at it.

Think about hosting private events—birthday parties, business meetings, networking events, or even a bridal or baby shower! You can double down on your earnings by offering your menu items or even creating a custom experience, like a coffee bar for the event.

And hey, why keep it all in your shop? Take your coffee to go!

Serve it up at your local church’s after-service coffee and donuts, bring it to morning meetings at the law firm down the street, treat your district’s teachers to a much needed pick me up. Feeling bold? Try catering to bigger events like conferences or setting up your own stand at the farmers’ market. Taking your coffee outside your shop is a great way to get your brand in front of new faces, expand your reach, and of course, make some extra cash.

There you have it! I hope today’s newsletter has demonstrated that mixing things up and adding a few new revenue streams can really help boost your coffee shop’s income and build an even stronger bond with your community. Whether you’re adding food and drinks, hosting fun events, or renting out your space, there are tons of ways to get creative and make your shop the go-to place for more than just a cup of coffee. So, don’t be afraid to try new things—expand your offerings, experiment with fresh ideas, and watch your shop grow into something even more amazing!

Until next time!

✌️,

Coffee Shop Keys