Post on 09-May-2015
description
Coffee Shop Software:Making It Pay Off For You!
CoffeeFest Seattle 2014www.coffeeshopmanager.com
Kim HojaboomCoffee Shop Manager
Agenda
CoffeeFest 2014www.coffeeshopmanager.com
When is it time to purchase Coffee Shop Software?
How Can You Get the Most ROI?
Tips for Choosing the Right System
Technology Evolution
CoffeeFest 2014www.coffeeshopmanager.com
From Cash Register To Point-of-Sale System• Ring up orders• Give Customer A Receipt• Minimal Reporting• No Management Tools• Separate credit / gift• No customer data• Inexpensive
• Much easier to ring custom orders• Extensive reporting and analysis• Integrated credit, gift, loyalty• Sophisticated customer tracking• Employee timeclock & scheduling• Inventory tracking• Many management tools
Does Your Shop Need A POS?
CoffeeFest 2014www.coffeeshopmanager.com
Main Reasons Owners Buy POS:• To Improve Accuracy• To Reduce Costs • To Increase Profitability• To Improve Customer Service• To Implement Marketing Initiatives• To Better Analyze the Business• To Gain More Time• To Manage Remotely• To Manage Multiple Locations
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Improved Accuracy:• Easy to ring orders correctly• Ensure all upcharges get charged for• Ensure that discounts are applied correctly• Accountability process – no orders made without a ticket
Example: • Susie forgets to charge for caramel flavor ($.30) on average 3 times per shift.• 5 Susies per day = $4.50 per day = $31.50 per week = $1638 per year
Example: • James wants to be nice to his favorite customers, so he applies the senior discount every day – not just on Tuesdays.• 10 discounts per day = $4.50 per day = $31.50 per week = $1638 per year
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Reduced Costs:• Printed tickets for baristas; cup labels ensure no orders made incorrectly. • Inventory tracking – “Cup count” report reveals uncharged items; Retail inventory tracking• Improved management processes cut down on manual paperwork & managerial time
Example: • Rob heard “non-fat” instead of soy latte. Have to remake it. Cost: $.75• 2 Robs per day = $1.50 per day = $10.50 per week = $546 per year
Example: • Mary compares the cup count report and finds that 5 grande size drinks were not rung up today. She meets with the staff & behavior improves.• 5 Grandes per day = $22.50 per day = $157.50 per week = $8190 per year
Example: • Mary has to stay late to catch up on paperwork reconciling the old cash register to the credit card machine, counting up time sheets, etc. • 3 hours overtime = $65 per week = $3380 per year
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Increased Profitability• Strict cash management controls reduce theft• Integrated timeclock to manage labor• Reorder reminders keep you from running out of items• Integrated credit card processing more secure / less costly
Example: • It’s a slow day – Mary checks sales and labor reports and decides to send one barista home early.• 3 labor hours = $34.50 per day = $103.50 per week (3x) = $5382 per year
Example: • You ran out of Organic Orange Juice bottles and won’t get more for 3 days. Poor inventory controls means this happens monthly with one item or another.• 10 juice sales missed = $35 per day = $105 per incident = $1260 per year
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Improved Customer Service:• Speed of service• Track customer accounts• Integrated pre-paid / gift cards• Integrated mobile / online orders
Example: • Customers buy your Pre-paid card special “Free Latte” with $40 card fill. • 100 cards sold: Your $35 card cost plus $75 cost for the lattes• $100 in processing fees saved when customers use cards instead of credit• 5% of card value are never redeemed ($200). Your Net: $190. Repeat weekly for $9880 per year savings
Example: • You implement a mobile ordering app to give customers easy ordering on-the-go and the chance to skip the line.• 100 regular customers order one more time per week because of the convenience• Weekly revenue boost: $450 Yearly: $23,400
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Improved Marketing Initiatives:• Integrated customer loyalty • Track discounts and promotions• Use gift cards promo to attract new customers
Example: • You implement a loyalty program and start communicating with and rewarding your best customers. 500 customers join and increase average frequency from 3 visits a month to 4.• 500 Additional Visits = $2250 per month = $27,000 per year
Example: • You issue 500 $5 gift cards in the local community to attract new business.• Your cost is $175 for cards and $375 in product = $550• 5% (25 customers) become once-a-month regulars: $1350 per yr.• 3% (15 customers) become once-a-week regulars: $3510 per yr.• 1% (5 customers) become 3x a week regulars: $3510 per yr.• Total new business value (after promo costs): $7,820 per year
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Better Business Analysis:• What menu items sell the most• What hours are unprofitable• What employees are most effective
Example: • You find that Cake Pops are outselling brownies 3 to 1. You decide to dump the brownies and add Chocolate Fudge Cake Pops instead. • Increased Sales = $8.85 per day = $61.95 per week = $3221.40 per year
Example: • For the past few weeks you realize that sales from 4-5 pm are not covering labor costs. You decide to close an hour earlier. • Labor Savings = $23 per day = $161 per week = $8372 per year
Example: • You decide to hold sales contest to see who can sell the most pastries. The staff gets excited about the competition and sales triple! You decide to implement a different contest each month.• Increased Pastry Sales = $30 per day = $210 per week = $10,920 per year
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
Gain Time / Manage Remotely / Multiple Shops:• Quality time outside the business• “Eyes” at the shop when you aren’t there• Access remotely • Keep prices consistent across multiple shops• Export data to Quickbooks / Payroll / Accounting
Example: • After years of being tied to working daily at the shop, you go on vacation to Hawaii for a week. You log in daily to your POS system to check the #s.• Relaxation with the family: Priceless!
ROI of POS Software
CoffeeFest 2014www.coffeeshopmanager.com
POS Return on Investment Yearly Savings
Forgotten Upcharges $1638
Inappropriate Discounts $1638
Mistakes – communication to baristas $546
Items not run up $8190
Manager overtime for paperwork $3380
Extra labor hours when not busy $5382
Running out of profitable items $1260
Pre-paid card usage $9880
Mobile app boosts frequency $23,400
Loyalty program boosts return rates $27,000
Gift card promo brings in new customers $7820
Focus on most profitable items $3221
Eliminate unprofitable open hours $8372
Sales contests among staff $10,920
Grand Total: $112,647
Paradise Here We Come!
Choosing A POS System
CoffeeFest 2014www.coffeeshopmanager.com
• Bar code entry• Retail item sales• Not fast
Retail Systems Restaurant Systems• Touch screen• Food ordering• Little Retail
Coffee Shop Systems• Touch entry• Retail & Food• Specialty Coffee Features
What Makes Coffee Specialized
CoffeeFest 2014www.coffeeshopmanager.com
• Easy Drink Builder with sizes, flavors, upcharges, modifiers• Cup labels• Cup count inventory reports• Mixed retail (barcode) with food• Easy interface for whole bean sales• Customer pre-paid gift card accounts• Customer loyalty programs
POS Considerations
CoffeeFest 2014www.coffeeshopmanager.com
• Tablets are a hardware option• Popular for image , mobility, price• Software functionality is critical• Mobile Line buster or Fixed on counter? • May be limited in credit processor choice• Require enclosures / stands – increases costs
Tablet POS
POS Considerations
CoffeeFest 2014www.coffeeshopmanager.com
Cloud POS• Your data primarily resides off site, on POS co. server• PRO: Data is not lost during hardware failure• CON: Access can go down – either your internet fails or a cloud outage. • Consider: Do you have access to export/store data?• Subscription cost – ongoing – as long as you want to access the historical info.
Average yearly unavailability of cloud services (in hours)7.5 Average yearly unavailability of
electricity (in minutes)15
Source: http://statspotting.com/cloud-statistics-outages-cost-more-than-71-million-usds-since-2007/
POS Considerations
CoffeeFest 2014www.coffeeshopmanager.com
“Traditional” POS• Data & Software resides in your store• Typically uses Windows-type workstations• May have option to run on tablets• Many available peripherals• Full-featured systems
POS Considerations
CoffeeFest 2014www.coffeeshopmanager.com
POS-Enhancers• Online & Mobile Ordering• Credit Card Processing• Gift Cards & Pre-Paid Cards• E-mail & Text Marketing• Loyalty Rewards• Enterprise reporting• Enterprise System Management• Accounting & Payroll integrationConsumers surveyed have used
mobile internet to place a food order69%
Have downloaded at least one branded, individual restaurant app
50%
Consumers age 18-30 are “happy” to receive offers via SMS (text)
50%
Of text messages are opened; 83% within 1 hour 95%
Consumers estimate their visits increase once they join a restaurant loyalty program
35%
Say they recommend to friends more often if restaurant has a rewards program
65%
How Will You Pay for your POS?
CoffeeFest 2014www.coffeeshopmanager.com
• Cash• Credit Card• Lease• Subscription Plan• Credit card royalty Plan
TIPS: Selecting Your POS
CoffeeFest 2014www.coffeeshopmanager.com
• Identify key features for your business - checklist• Choose software first• Look for industry-focused solutions• Hardware is a commodity – purchase from 1 source• Look for expandable features for your growth• Look for PA-DSS Certification for your security• Consider recommended credit processing partners• Contact references• Consider company’s character – it’s a long term relationship!
TIPS: Negotiating Your Purchase
CoffeeFest 2014www.coffeeshopmanager.com
• Buy hardware & software from one vendor for the best deal• Want a deal? Focus on software “modules” that can be discounted more easily than hardware• Timing: Ask for the show special• Negotiate your credit card processing as part of your purchase.• Explore payment options – lease vs. buy vs. SAAS (rental/subscription)
TIPS: Getting The Most ROI
CoffeeFest 2014www.coffeeshopmanager.com
• Don’t skimp on training – be sure you learn how to use your new system.• Assign a staff member to become an expert• Go beyond the basics & use the tools:• Inventory• Scheduling• Marketing / Loyalty• Stay actively involved with your vendor.• Attend ongoing training / courses / seminars • Keep software updated & supported
CoffeeFest 2014www.coffeeshopmanager.com
Thank You!About Us:Coffee Shop Manager is a leading technology provider to the coffee industry. We offer point-of-sale with integrated online, mobile and self serve ordering, as well as a robust loyalty marketing solution. Please visit us in Booth #327.
View slides at: http://www.coffeeshopmanager/softwareROI