3 helpful tips to get more Hispanics into coffee shops.
Hispanics love coffee. It is part of their culture. Whether for breakfast, after lunch, a long night studying or mingling with friends, a nice “Café con Leche” or “Cortadito,” keeps you warm, energized and gets your day going.
Based on research from the National Coffee Association (NCA), coffee consumption is stronger among Hispanic Americans than non-Hispanics. This market report reveals that 74% of Hispanic Americans drink coffee daily. That’s a full 12 percentage points ahead of non-Hispanics.
This market trend has been an eye-opener for well-known brands such as Dunkin Donuts, Starbucks, Denny’s and more. They have been very proactive responding to this demand. However, there are still some decision makers that are thinking about it.
I had the opportunity to share current market research with the president of a coffee store in the Orlando market. He owns 4 stores and has good brand recognition. Even thought the Hispanic market in Central Florida represents 27% of the population, he still feels that it is not an opportunity to grow his business because he doesn’t have a store in the Miami market. What strikes me the most is that after pulling the demographics of his stores through Geoscape, 3 of his 4 locations are in an average density area of 50% Latino. The question is, how much profit is he missing out on?
The NCA report also shows that 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%).
Since the Hispanic market is growing so rapidly, there is a big business opportunity waiting for coffee shops. Here are 3 helpful tips that can help you fill your bottom line:
1) Research your store’s demographics: Find out what percentage of Hispanics live within a 5 miles radius from your shops. If it is over 13%, it will definitely make sense to attract this community. Knowing your store’s demographics will enable you to gain more clients.
2) Make it 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.
3) Understand their consumption habits: Coffee shops have to be family-friendly. Hispanics tend to go out with their children and stay longer compared to non-Hispanics. Therefore, there is an opportunity to up-sell kids’ menus, pastries, juices, etc. Make sure to train your servers well. Larger tables mean bigger checks and better tips.
If you want to significantly boost sales, it is very important to be aware of the quality of service Hispanics will expect from you, 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 some pretty amazing results.
