How’s it going, coffee crew?

In our last article, we touched on the steep rise in coffee prices and I promised some ideas for mitigating these rising costs in today’s newsletter. 

Here’s the catch: while I don’t have all the answers just yet, the reason is simple—there are so many effective ways to optimize profit that we can't possibly cover them all in one go.

So, welcome to the start of our multi-week journey into saving and boosting your business's bottom line, all while continuing to fuel your community with great coffee!

Today, we’ll dive into 5 WAYS to not only minimize waste, but to also turn those inevitable leftover products into profitable opportunities. Let’s dig in!

To start, it’s only right we begin with the single most expensive product you purchase: coffee beans.

Don’t let beans go bad early.

Proper storage and preservation of your coffee beans CANNOT be overstated. It is key to maintaining their quality and extending their shelf life. A longer bean life can also allow you to buy in bulk, which generally results in noticeable savings.

While there are various methods for storing beans, the general consensus is to keep them in airtight containers in a cool, dry, and dark space. This helps preserve freshness and prevent spoilage.

Some choose vacuum-sealing, others use nitrogen-filled containers, and there's always the simplicity of good ol’ airtight bulk bins (food-grade, of course). Whatever method you choose, minimizing exposure to air, light, and moisture is crucial.

As for freezing, the jury’s still out, but it works best when beans are vacuum-sealed, kept sealed until thawed, and used within a few days of being removed from the freezer.

And a final tip: always follow FIFO (first in, first out), avoid grinding your beans too early, and steer clear of refrigeration!

If you find yourself consistently with a surplus of coffee beans, why not consider offering a coffee subscription program where customers can purchase small amounts of beans? This not only helps minimize waste but also fosters customer loyalty and strengthens their connection to your shop.

Bonus points if you use this as an opportunity to host workshops for subscribers or the wider community on brewing the perfect cup of coffee at home! This not only empowers your customers but also creates an opportunity to build rapport between your team and customers, all while reinforcing a culture that values quality coffee.

By offering a subscription service that connects your customers to your business in multiple ways, you increase the chances of repeat visits and continued support! 

Let’s face it. Pouring that leftover black gold down the drain at the end of the day hurts. When it’s time to close up shop and you find yourself with half an urn (or more!) of drip coffee, you don’t have to let it go to waste!

The possibilities for leftover coffee are as vast as your creativity! Here are some practical and fun ways to make the most of those leftovers:

Food Offerings: Many coffee shops offer baked goods to complement their drinks. Why not incorporate yesterday’s coffee into your pastries, like adding it to muffins or brownies for a little extra kick? Depending on your menu and resources, you could also turn leftover coffee into coffee-flavored ice cream, granola, oatmeal, syrup, or even a unique butter to spread on fresh, toasted bagels!

Coffee Ice Cubes: This is a simple, low-effort idea to create a product that's perfect for smoothies or shakes with a coffee boost. Alternatively, they make great ice cubes for iced coffee that won’t get watered down as they melt!

Cold Brew Concentrate: Leftover coffee makes a fantastic base for cold brew. Just add water, steep, drain, and enjoy! It’s a quick and easy way to offer a popular menu item without any waste.

Fuel for Plants: While this doesn’t directly save you money, watering your shop’s plants with diluted coffee is environmentally friendly. It’s especially beneficial for plants that thrive in slightly acidic soil, like ferns, spider plants, and herbs like mint and thyme. Plus, it’s a great way to minimize waste and keep your space green!

You can’t make coffee without producing grounds. So let’s monetize and build community with our inevitable “waste” product!

Ever heard the saying, "One man's trash is another man's treasure"? Well, I’m pretty sure the author was actually referring to coffee grounds.

Turns out, grounds are more than just the byproduct of your coffee.

Gardeners love them as a natural fertilizer, composters use them to create rich, eco-friendly compost, and they even make a great pest repellent. You can get involved by offering your used grounds to customers or local businesses for a small fee or even as a freebie.

Know any local salons, artisan shops, or crafty DIY enthusiasts?

Your grounds can be turned into coffee-scented scrubs, candles, or even natural hair dye. Even if you choose to donate over charging for the grounds, your coffee shop could get a shout-out on their product labels. It’s a great way to engage with your neighborhood and promote an eco-friendly vibe!

We’ve all been there. You buy too much of a perishable item and the clock is ticking on its shelf life. How can you avoid eating these costs?

Imagine this: You’ve bought a bunch of peaches for a special summer iced tea, but now September is approaching and a few crates are sitting in the back, on the brink of going bad—and taking your profits with them. Sound familiar?

When you find yourself with more perishable ingredients than expected, turn them into limited-time offerings! Create a buzz-worthy item and sell it with style.

For example, welcome autumn with a new peach spiced latte, peach cobbler muffins, or even a peach hot toddy if you’re feeling edgy!

There are endless ways to incorporate surplus ingredients into exciting new drinks or treats. Just make sure to promote them well—whether it’s through social media, a chalkboard outside your shop, or a flyer at the counter—ensure your product is visible, enticing, and impossible to resist!

Before I sign off, I’d be remiss to exclude a few other important strategies. While they aren’t necessarily using your existing product or leftovers, these tips will reduce the incidence of excess waste and product buildup:

Look Internally: Properly Trained Staff

Don’t underestimate the power of a staff that consistently implements FIFO (I’ve mentioned this twice for a reason). By practicing FIFO, you ensure that older ingredients or supplies are used first, reducing the chances of them sitting on shelves until they go bad.

Ensuring the proper measurement of ingredients is another easy way to limit waste. Over-pouring milk, syrups, or coffee grounds can add up quickly. By using the right measurements for each recipe, you'll avoid unnecessary waste and ensure consistent quality. Take the time to train staff to standardize the production of food/drink and consider using standard-sized scoops, pumps, or ladles for ingredients.

These are simple practices, but it makes a big difference in reducing waste and saving money.

Data Driven Product Purchasing and Seasonal Trends

I know, it’s a mouth full, but really it’s all about this: pay attention to what’s selling and how much of it.

Whether it's the winter rush for peppermint lattes or the growing demand for plant-based milk, adjust your purchases to match the trends. Keep an eye on what’s popular and stock accordingly!

You might even want to look into a simple data analysis tool that syncs with your POS system. This takes the guesswork out of your inventory decisions, turning customer habits into actionable insights that go beyond just what *feels* right.

Note the Daily Flow

By paying attention to the daily rhythms of your coffee shop, you can adjust food and drink preparation (and, of course, align staff accordingly—that’s a whole other topic) to avoid overproduction and running out of popular items too soon.

If your croissants fly off the shelf in the morning but barely move after midday, slow down production in the afternoon. If cold brew sales dip on rainy days, make a bit less when you see that storm on the radar. Maybe the Tuesday evening book club consistently orders your scones and iced tea; make extra to prepare for that crowd.

Recognizing patterns throughout the day and week can allow you to make tweaks in production of your menu items, making a big difference in keeping waste—and costs—low.

That’s a Wrap!

And there you have it, folks—some simple but effective ways to reduce waste and maximize the profits of the products you already have. By applying these strategies, not only can you save money, but you can also build a stronger connection with your community and foster a more sustainable coffee shop environment.

Remember, small changes lead to big results, so start tweaking your processes one step at a time, and watch how it pays off in the long run. Stay tuned for more tips in the next issue—we’ve got a lot more to cover on this money-saving journey!

Until then, take care and keep brewing up success!

✌️,

Coffee Shop Keys