Hispanics love coffee. It’s part of their culture. Today they are helping to drive the growth of coffee sales. It is estimated there are more than 31.3 million Hispanics who drink coffee in the USA. They represented a growth of 13% between 2010 and 2014 and also contributed 10% of the total U.S. coffee market ($831 million) according to Simmons NCS/NHCS Spring 2014.
Coffee is not just for the “Abuela,” the grandmother, anymore. Younger generations are becoming key consumers in this industry. 41% of Hispanic coffee drinkers fall within the Millennial group (ages 18-24) compared to 26% of non-Hispanics.
Based on research from the National Coffee Association (NCA), coffee consumption is stronger among Hispanic Americans than non-Hispanics. Hispanic Americans appear to drink more premium coffee types than non-Hispanics (46% drink gourmet coffee beverages daily versus 29% of non-Hispanics). Also, daily espresso consumption is higher among Hispanics (32% versus 11%).
Coffee is ingrained into Hispanics’ daily routine. Brand and taste are key to them. According to a report from Mintel Oxygen, “Coffee: US 2013,” some of their favorites within the coffee house brand category are: Bustelo, Folgers, and Maxwell House, followed by Starbucks and Dunkin’ Donuts.
Since the Hispanic market is growing at such a fast pace, it has opened up a big business opportunity for coffee brands and shops. Think for a second: If you haven’t engaged this community in your marketing efforts in the past, how many cups or pounds of coffee are you still not selling to them even though they are driving the growth of coffee drinkers in the USA? You could dramatically increase your sales if you started paying attention to this audience. But you must take the right approach by crafting a culturally relevant strategy and deploying an ongoing initiative as part of your marketing efforts.
If you really want to take the lead in the coffee house industry, here are 4 helpful tips that can help you keep refilling your bottom line:
Know your community: Research your store’s demographics. Find out what percentage of Hispanics live within a 5 to 10 miles radius from your shops. What percentage are your current clients? How can you shorten the gap? What type of coffee do they buy? Where are they located? How can you attract them? Knowing your store’s demographics will enable you to gain more clients.
Embrace their culture: Speak their language. Whether you reach out to them in English or Spanish, you must have a culturally relevant campaign that speaks to their needs. It is the only way to achieve success and generate greater ROI. Even for bilingual Hispanics, do not assume that your Anglo campaigns will resonate with them just because they were born in the USA. This is one of the most common misconceptions that will waste a lot of your money.
Make them feel welcome: Create a pleasant, relatable experience. Hispanics like the “entire cultural experience” when they go out. Having a bilingual welcome sign, menus available in Spanish, and bilingual staff are investments that will pay off significantly.
Embrace the family: Understand their consumption habits and how important family is to them. Hispanics tend to go out with their children and stay longer compared to non-Hispanics. If you make their experience a family-friendly one, it will open up a greater opportunity for you to up-sell items from your menu to the rest of the family, including the kids (sodas, sweets, pastries, etc.). That translates to greater sales and bigger tips.
To significantly boost sales, it is also very important to be aware of the quality of service Hispanics will expect from you, as well as the customs they exercise, the flavor and food ingredients they prefer, and the cultural traditions they embrace. If you do it right, these simple investments will brew up some pretty amazing results.
