COVID CRISIS 2020 | Vol. XXXIII No.4 www.coffeetalk.com
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COVID Q-Class 10 COFFEE SERVICE CORNER Emerging from the Darkness 12
During a Global Pandemic 14
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Contents
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The View
Visit http://coffeetalk.com/forms
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Behind the Mask 2020
Can't Touch This
8
How the Coffee Industry is Dealing with Covid-19
10
Roasters Rock
Tales from the First Covid Q-Class
WHO WE ARE Phone: 206.686.7378, see extensions below Publisher Kerri Goodman, ext 1 kerri@coffeetalk.com Administrative Director Laurie Veatch, ext 4 laurie@coffeetalk.com Web Design Justin Goodman, ext 6 justin@coffeetalk.com
Coffee Service Corner
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Emerging from the Darkness
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Economic Implications of COVID-19
The Obstacles and Opportunities During a Global Pandemic
15
Advertiser Index
Feature
Behind the Mask 2020
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THE VIEW Kerri Goodman
— COVID STYLE
“We have this critical moment in time not just to survive, but to live and be our best selves every day.” “Now more than ever, a company’s culture can make a difference... help [your employees] feel connected ad important.” “Our industry is a resilient and adaptive one.”
W
ow! I can honestly say I never saw this year coming. This was initially scheduled to be the “SCA/NAMA” issue distributed at the two most significant conferences in North America for coffee professionals. Personally, I had not missed an SCA(A) Annual Expo since 1992. But the COVID crisis has forced all of us to change the way we do business. Nothing is the same. Challenges abound, and every day brings the opportunity to learn, grow, and adapt. As hard as it has been, I believe it has also offered many blessings. We realize we are far more resilient than we ever thought we could be. We are challenged to change. More than ever, it is critical we come together as an industry to conquer the crisis! The only guideline given to our contributors for this issue was to relate their editorial in some way to COVID. It was fascinating to me to see the commonality through each story: Community is key! I took just a few words from each article “We are all in this together.”
“Keep in mind that disruption always brings opportunity along with challenges if you choose to seek them out and embrace them. We are stronger together.” Creating and strengthening coffee community connections has always been CoffeeTalk’s core strength and value. There are numerous individuals and organizations that have been and continue to make our industry stronger and in this time of crisis, it is crucial we focus on recognizing the positive things that are happening. To those who are leaders, innovators, visionaries, advocates, and humanitarians, our next issue is dedicated to you! We are forming an industry council to help create eligibility requirements and a panel of judges to recognize the leaders, legends, and luminaries amongst us. Thank-you to the dedicated industry professionals who have already taken the time to give feedback in creating these new industry Awards. If you are interested in joining as a judge, sponsor, or a part of the Award Eligibility Council, please let us know at https://form.jotform.com/202080894777869! Soon the nomination form will be public and all finalists will then be profiled in our Making a Difference: Champions of Coffee issue. The time is now to reconnect with our coffee community. We are stronger together!
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4 Covid Crisis 2020
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Behind the Mask 2020 by Scott Strader, Lotus Energy Drinks
I
n her 1970 hit Big Yellow Taxi, singer-songwriter Joni Mitchell famously noted, “You don’t know what you’ve got ‘til it’s gone.” More and more, this is how America is feeling when it comes to Life in the Time of COVID. The little daily pleasures and rituals we once took for granted we now view as rare luxuries and wonder if they will ever return. This includes everything from attending major sporting events to taking a simple trip to the local coffee shop. March 10th, 2020 Javits Center, the site of New York City Coffee Fest 2020. My company, Lotus Energy Drinks, was preparing to participate in CoffeeFest, a major java festival held annually at the sprawling Javits Center on 11th Avenue on Manhattan’s West Side. As I sipped my morning coffee and read The New York Times — full of conflicting viewpoints and speculation about the virus – life still seemed relatively normal, the threat still distant and amorphous. The festival was still a “Go,” which filled me with confidence. If New Yorkers were not afraid, why should I be? They had been through 9-11. Then I heard that some of our competitors had bowed out. Ever the optimist, I saw this as a golden opportunity to really stand out in the crowd, to make my mark on the Big Apple! On my flight back to California , I felt an eerie feeling as if I had run the gauntlet. Seven days later, the Javits Center would be facilitating a makeshift emergency hospital as the new epicenter for worldwide pandemic Covid 19, in the United States. New York businesses were ordered to shutter indefinitely in hopes of containing the deadly contagion. Fear quickly spread across the country like a raging wildfire, evident by panic shopping from coast-to-coast as people scrambled to buy up all the fresh meat, bottled water, canned goods and toilet paper they could get their hands on. It was like the entire United States was preparing to confront the Zombie Apocalypse. Even Lotus’ own supply chain was impacted, as we found ourselves unable to get the bottles, pumps and labels necessary to fill orders for our energy drinks. It seemed all of our suppliers had converted, virtually overnight, to producing the most valuable commodity in America: hand sanitizer. The effects of Covid-19 have been particularly brutal on the coffee industry. The monetary loss for coffee farmers, roasters, baristas and business owners
totals in the tens of millions of dollars. To comply with community-mandated safety and social distancing standards, coffee shop owners have had to find ways to space out tables and install dividers that inhibit viral spread. The result is that the close, intimate, community-like atmosphere that makes a good coffee shop attractive had been destroyed in favor of a sterile, clinical environmental suggests a hospital ICU more than your local Central Perk or Cheers bar. Especially in urban areas, coffee shops are more than just a place to grab a quick morning caffeinated beverage; they’re the community’s beating heart – our gathering spot – our mobile office, a place for locals to congregate and enjoy each other’s company, however briefly. Now they’ve taken this away, and our lives are missing something because of it. The reality is, uncertainty, doubt and panic about the future is always part of life. The corona virus is exposing this in the most acute way. We are all in this together. What is happening is a marker of where we are as a worldwide community and a reminder of our fragile humanity. But again, I’m an optimist. I see this crisis as a chance for us to recognize how important community is, and why it’s important that we do all we can to preserve it. We should not let fear and panic separate us; instead, like the British during the Blitz in World War II, adversity should bring us together. It’s the only way we’re going to beat COVID-19. And it’s the only way we’re going to successfully rebuild when it’s *finally* gone. Coffee is the perfect conduit that helps create that interconnection at our social meeting spot. More than just a morning buzz, it makes life feel normal. We take the simple things for granted - the relationships we have the ability to nurture and most importantly, how valuable our freedom really is. I will take time during my next cup of coffee to reflect not on the painful present, but on what will certainly be a better, more grateful future. This will definitely make my visit to my local brew that much better. My very best, Scott Strader
6 Covid Crisis 2020
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Can’t Touch This by Jen Stone, Licensed Q Grader / Coffee Specialist Consultant
How the Coffee Industry is Dealing with Covid-19
F
Gratitude for contributing is extended to multiple coffee industry manufacturers and to Félix-William Trépanier, President of JA Coffee, an importer of Jamaica Blue Mountain, among other exclusive coffees along with Kyra Kennedy, Co-Founder, CEO & Culture Champion, Baratza.
rom basic survival to creative innovations, we are here, in a new era, from sanitizer on every corner and lonely lunchrooms to MASKS of every kind (wear one). Time spent hypothesizing a new app for your business seems frivolous, as now, the critical need is to make decisions and transactions not as touchy, but still feely in a new world where we can’t see one another’s smile. Here is an industry round-up of actual experiences from coffee-related businesses, roasters, retail cafés, and how we are finding blessings in disguise in the direst circumstances. Coffee Industry – Manufacturers & Importers Safety Response: • Amped up cleaning protocols in warehouses • Reduced hours of operation • Use of powerful UVC lighting in downtime
JA Coffee and their Stay at Home campaign
Unexpected Challenges: • Problems with supply chain, from closed ports to suspended air cargo • General delays at origin, due to reduced staff and hours • No face to face sales or trade shows • Fast-tracking plans and costly innovations Silver Linings: • Fear and hustle have resulted in increased sales to existing customers • Online sales increased – secondary channels like direct to consumer have been surprisingly significant • Customer communication has been relegated to phone and digital-only – people are much more available as they have to stay in place • No travel (depends on your relationships, how you view this) • Increase in demand for limited-touch automation of bean to cup coffee brewers and superautomatic espresso machines • Increase in sales of professional equipment (grinders, espresso machines) to use at home I recently received an announcement about fascinating development in coffee servers – HANDS-FREE dispensing. FETCO announced that their new 1- and 1.5-gallon servers have a coffee release handle turned to the bottom. This is great for many reasons, considering the hours I have spent filling cups of coffee. Simply press a cup against the handle to activate a hands-free dispense. Plus, the handle is made with antimicrobial Omni Pro Armor* at the FETCO facility in Lake Zurich, IL, in the United States. Other coffee/espresso machine manufacturers are currently working on “touchless” options like ordering apps, QR codes, and antibacterial screens. While the lead time required to troubleshoot innovations like these as well as work with national partners presents the typical hurdles, and all initiatives appear to be fast-tracked.
Coffee Roasters Safety Response: • Mandatory daily temperature logging • Masks in all common areas • Reduced seating in break areas • Schedule adjustments • Gloves and multiple hand sanitizer stations • New policies & procedures created and enforced such as waiting 30 minutes after eating, drinking or exercising before temperature logging • Closed to walk-ins Unexpected Challenges: • Massive, day-long cleaning services in response to Covid-19 exposure in facilities • Lax Accounts Receivable practices from the past are now resulting in severed customer relationships and loss of cash • Immediate 80% - 90% drop in sales • Layoffs, furloughs • Pivots to aggressive e-commerce focus • New capital investments in customer equipment met with zero ROI • Office clients now working from home Silver Linings: • E-commerce – massive shift to online sales (quadrupling online business) • Adding new channels such as retail grocery • Staff and Management more aligned than ever • Primary focus on the customers • Ability to say goodbye to some legacy customers that were not making the company money • Available time for new initiatives in training information thereby adding value for customers • Culling of product offering, reducing SKUs, other projects that kept getting delayed that are helping profitability • Payment of 100% of Health insurance, instead of the usual 60%
8 Covid Crisis 2020
cont. on page 9
Can’t Touch This • Bringing the inside-outside – a creative use for a container created spacious outdoor facilities • Increases in bulk coffee sales
I would like to thank Jonathan Del Re, CEO, Lacas Coffee Co., LLC in Pennsauken Township, NJ, and Sean Harwin, Director of Operations of Caffe Lusso Roasting Company in Redmond, WA for sharing your experiences. Cafes & Coffee Bars Safety Response: • Giant plastic shields between cashier and customer • Supplying masks to customers when needed • Taping off floor sections 6 feet apart • Reducing seating and closing off difficult to monitor areas of café • Participation in contact tracing
A shipping container is modified to create a compliant space at Torrefactorie in Montreal, Canada FDA resource While we have much we can learn from each other; the Ultimate Authority remains the FDA for our industry as it relates to safety. Now available - Best Practices for Re-Opening Retail Food Establishments During the COVID-19 Pandemic Food Safety Checklist. https://www.fda.gov/food/food-safety-duringemergencies/best-practices-re-opening-retail-foodestablishments-during-covid-19-pandemic
Unexpected Challenges: • Hostility from customers about wearing masks • Additional paperwork • Phases of opening, now closing again Silver Linings: • Selling food and supplies as groceries instead of prepared items
We have grown even more sensitive to each other’s needs during this time and hope the worst has passed. The Silver Linings List will continue to grow, and we have this critical moment in time not just to survive, but to live and be our best selves every day, all in the name of a great cup of coffee.
Jen Stone
RoastMaster™ series, a new dimension in flavor creation Bühler’s RoastMaster Series delivers the full flavor potential of any coffee blend. Whether you’re an artisan shop or small industrial operation, using traditional or multi-step roasting, RoastMaster provides the consistent roasting profiles for the flavors you seek.
Have a question? Let’s talk about it. buhler.minneapolis@buhlergroup.com
Innovations for a better world.
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Roasters Rock
by Rocky Rhodes
COVID and Q Grading Tales from the First COVID Q- Class
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ou can be a good roaster without being a good cupper, but you will never be a great roaster without being a great cupper. Cupping is the tool great roasters use to evaluate and create the perfect roasts for worthy coffees. The industry standard for cupping protocols is the CQI Q grading system. It is not the only cupping methodology, but for a roaster working to source green coffee, build profiles or maintain consistency, it is merely the best one. This is why many great roasters are also Q-Graders. Cupping is sometimes a solitary effort, but more often it involves a group. It could be a QA/QC team, green buyers, or the roasting staff. Cupping together builds calibration within the team, which is crucial for several job functions. The question with COVID 19 in our lives is, “How can we be safe and still cup together?” That is indeed a tough question. The answer involves exploring two other issues. 1) What protocols can I change to maintain a safe environment? 2) What is my fear tolerance? Possible Protocol Changes There is a lot of stuff out there through the SCA, CQI, and NCA that talk about different cupping protocols. Most involve gyrations around a personal rinse cup for your spoon and a shot glass to transfer the coffee. The goal of these changes is to isolate or put a gap between you and the other cuppers when dealing with coffee from the same cup. It can be done. It feels weird at first. And if you can maintain a 6-foot distance at the cupping table while enacting the new protocols, you can be reasonably safe. It does, however, create a fundamental question around the cupping table: Do we really need to be cupping this, or can we do something else that is simpler? For many of the functions of a roasting company, a tasting is just not going to work. For some, it might. Green coffee buying, blend component replacements, and profile development may not work well as a tasting. Cupping, whether with original or new protocols, is the right tool. This brings us to our second question. Fear Tolerance It is not being suggested that anyone should stick their head in the sand or be glib about the safety of the people in the company. Still, certain precautions and personal responsibility can mitigate risk to a reasonable level. Being symptom aware: Ask employees to stay home if they are showing any signs. Checking temperature before entering the workplace or at least the cupping room is a solid idea. Get tested: Many areas offer free testing. A nasal swab will let you know if you are currently infected. An antibody test lets you know if you have been infected in the past. If you think you have any symptoms, then you need to be tested. Both of these tests give you results in two to three days. Enhanced cleaning of the lab: Have hand sanitizer for entering the cupping area. Wipe down surfaces between cuppings. How to run a safe Q class in a COVID world A Q class just ran in the Los Angeles area. Before holding the course, a long debate was held wrestling the two questions above: ‘Should protocols be adapted?’ and ‘What is the fear tolerance of all involved?’ For those unfamiliar, a Q-Class involves six days of training and testing where students are in class together for 8-10 hours per day. They are in both
a classroom and a cupping lab. There are meetings at the cupping table 12 different times. The goal is to get all of the students calibrated on grading coffee, so they have to cup from the same coffee sample. At the end of the debate, the following was decided: A) Because the global effort of the Q grading system is to calibrate cuppers worldwide, much effort is put into teaching and learning protocols that will be strictly followed by all Q Graders. To change the protocols for the US, or any other country would mean having to adapt and retrain over 8000 Q Graders on any new protocols. B) It is somewhat unrealistic to think that a class of this duration, in close quarters, and needing to sample from the same cup, that protocols or classroom behaviors that would keep an infection from spreading to all students over a six-day course. – If someone has it, then everyone is going to get it. So now it is up to the teacher and the students to understand their personal responsibility and fear threshold. The instructor sent out an email to all students that signed up for the original class that was to be held in March but postponed three times. The email laid out the situation and basically said the following, “If you are showing any symptoms, don’t come! If you are healthy and willing to come, realize that if one person in the class has it, we will all get it. We will not be changing any of the classroom protocols for the training. We will, however, be isolating our work in the lab from the rest of the company. Just because we are willing to take the risk does not mean we should risk infecting others.” It turns out students were pretty eager to sign up. There were six new students, one recertification student, and three retake students. Add in the Instructor and the Assistant Instructor it was a group of 12. Prior to the class, the instructor got tested. The results arrived the day before class – negative for COVID. Another student took personal responsibility because they participated in the BLM rallies. They took two tests and received two negative results prior to class. The class went well. The group isolated from the rest of the company with a separate bathroom, lunch area, and lots of hand sanitizer stations. The instructor waited until five days following the class and got both the Antibody test and the nasal swab. The instructor did not have antibodies AND was negative for COVID 19 currently. It would be reasonable (but not 100%) that if the instructor did not pick up the virus during the class, then the students didn’t either. Personal responsibility, combined with proper respect for the reality of the disease, can create an environment where life can go on, Q Classes can run, and cupping can just be cupping. Rocky Rhodes is an 18-year coffee veteran, roaster, and Q-Grader Instructor, and his mission now is to transform the coffee supply chain and make sweeping differences in the lives of those that produce the green coffee. Rocky can be reached at rocky@INTLcoffeeConsulting.com
Photo by Trish Rothgeb
10 Covid Crisis 2020
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Coffee Service Corner
EMERGING FROM THE DARKNESS
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n my previous article, penned the week of March 16, 2020, we were in the early stages of this pandemic. Operators and suppliers serving the Coffee Service classes of trade were just beginning to comprehend the devastating impact to their businesses and personal lives (self-included). At that time, the DOW was at 19,500, and there were 250,000 COVID–19 cases worldwide. To keep things in perspective, today, June 26, the DOW is north of 25,000, and we are approaching 10 million COVID cases worldwide. For this article, I reached out to a number of my operator friends and associates for their perspectives. Also, I participated in NAMA’s 6/25/20 OCS webinar “Navigating the New Landscape of Office Coffee Service” during which several industry experts offered insights. Typically articles and stories have a beginning, middle, and end…in that order. Today, let’s begin with the article’s conclusion: Our industry is starting to show some signs of a comeback. However, for the vast majority of operators, the improvements are modest, and most everyone does not foresee anything close to a full return of revenue to pre-pandemic levels anytime soon. Many businesses remain closed. Others that have reopened are doing so with significantly reduced staff. Working from home assignments are being extended, some permanently. Many workers no longer have gainful employment. What are some of our more progressive operators/leaders experiencing today and anticipating nearer-term through the end of the calendar year 2020? Revenue and Expenses – The overwhelming majority of operators reported current sales volume being below 50% of pre-pandemic levels. The volumes reported ranged from a low of 10% to a high of 60% (very few). Recognize that these numbers come from a relatively small sample size. Geography served as well as an urban versus rural customer base are impacting results. Sales are trending northward to varying degrees according to most. Many costs, however, are static. Says Steve Brehm of Berry Coffee in Minneapolis, “We are doing everything possible to conserve cash flow and have downsized our staff in an effort to keep the ship afloat while we navigate these rough waters. We have also put a freeze on any unnecessary expenses, including equipment, parts, and trucks. As if the pandemic wasn’t bad enough, then the riots and civil unrest hit many communities very hard. As you tragically know, Minneapolis was at the eye of the storm that set off much of this worldwide unrest. We are only halfway through the year, and we still have a presidential election to get through, so who knows what’s coming next”. “In the Northern California region, the government is being very cautious. Businesses and individuals are in agreement that we shouldn’t rush things.” Says Tom Steuber, President of Associated Services based in San Leandro, California. “There is not much improvement in sight. We haven’t seen a lot of offices open so far, especially in the downtown area and in the high-tech business sector. We hear from our customers that they are looking at having some employees back in their offices in September, perhaps January. Even that is very tentative. They just have no definite plans, and there is no urgency to bring people back into offices. As a result of this pandemic, our business is down almost 80%.” Terminations of long term employees at all positions are painful but necessary since there is no incoming revenue to fund the jobs nor work activity to warrant them. Social media is awash with these stories.
12
by Ken Shea
Machines on Location – There are two different schools of thought regarding assets on location. While some operators have chosen to retrieve their assets, others are opting to leave the brewers and water appliances on location in anticipation of a resumption of business. In either situation, these assets are not producing revenue other than some rental charges. These machines, however, are not available for redeployment elsewhere. Most operators continue to engage their account decision-makers and explore future expectations. “Touchless, touchless, touchless.” is the most common brewer and water appliance request, according to Bryan Hicks, National Director of Coffee Service for American Food & Vending. “Our manufacturers have been extremely inventive in getting touchless equipment to market in record time. Utilizing the smartphones we all carry, customers are now able to order in seconds from their phones without ever touching the machine. This has been the only indisputable solution to the current crisis.” AF&V is a highly successful vend, micro-market, OCS, and dining services operator serving more than thirty-five metro markets in nineteen states. Judson Kleinman, CEO of Corporate Essentials based in New Jersey and serving metro New York and beyond, reports similar experiences. “We have offered Scanomat’s “Top Brewer” for some time and are well-positioned to meet the evolving demand for touchless brewing. These systems allow custom orders to be created through a phone app and can deliver two custom drinks per minute. But most importantly, we view that it is our duty to help office personnel and our own employees, be less afraid, and encouraging the practice of practical safety measures. Providing meaningful brewer solutions is an essential part of the process.” Operator Evolution – Office Coffee Service has always been a dynamic industry, adapting effectively and rapidly to evolving demand and changing market conditions. We have moved from glass bowls to thermal decanters, then to brew by pack systems, and now a migration to bean to cup system preferences. Market share migrated to the more progressive, and it will continue to be that way. Judson, recognized for his employee-centric philosophies and practices, continues. “Now more than ever, a company’s culture can make a difference. Convenience Services operators can and should support their clients’ efforts in maintaining a nurturing environment. I believe that pantries should come back stronger than ever. Keeping employees in the office will make a difference regarding safety. Why not offer free lunches? Some are considering office servers to minimize break station traffic. The bottom line, be a valueadded partner with your customers, not simply a service provider. In the meantime, while many of your own employees work from home, help make them feel connected and important.” Bryan Hicks offered a similar partnership perspective: “As we navigate these uncharted waters, we are finding that every customer has a unique idea of safety; this varies not only by state or region but office to office. Now more than ever, we are focused on creating an experience that gives our partners a true sense of safety and comfort. Our top priority is helping customers come to a solution that fits their new and evolving needs.” As Berry Coffee migrates through these times, Steve Brehm notes changes to his company’s product mix: “We are doing our best to provide our customer base that is back to work with protective gear and sanitizing products. We have also sourced many COVID-19 products like wrapped cutlery and stir sticks. This was met with great appreciation from our customers as they were having a tough time sourcing what they need to reopen their office and foodservice operations.”
Covid Crisis 2020
DiscountCoffee.com’s Kirby Newbury adds a word of caution regarding some of the new products: “Some of the new sanitization products have been reported to contain harmful components, some life-threatening.” Kirby also opined, “It’s interesting to see some roasters extending their shelf life declarations. Obviously, this is a tactic to help them manage inventories and their supply chains.” Kirby has successfully served his client base for more than 25 years. He notes that he is now delivering to a growing residential base. Other operators with pick, pack, and ship capabilities have expanded their offerings for at-home consumption. But not every operator is making this move. “We aren’t looking to branch into home delivery” says Tom Steuber “We feel like business to business is where our expertise lies.” Closing Thoughts – While we are slowly emerging from the darkness, the Coffee Service Industry is not close to being out of the woods. COVID cases
are on the rise, and we do not yet have a vaccine nor an arsenal of effective treatments for this virus. Some operators are exploring divestiture. A few are actively pursuing acquisition opportunities. Undoubtedly our industry will look significantly different in the future from market share mix and total annual revenue perspectives. Thanks to everyone who provided input for this article. Though the business recaps were bleak, to a person, the spirits were positive. Our industry is a resilient and adaptive one!
NewsBites AeroPress, Inc. and Cookies for Kids’ Cancer Announce New Research Award NEW YORK CITY, NY − Cookies for Kids’ Cancer, a nonprofit dedicated to raising funds for childhood cancer research, has announced a call for proposals for the Innovative Translational Research Award. This new grant of up to $100,000, fully funded by AeroPress, Inc., will support research into novel, less toxic treatments for childhood cancer. Young investigators from seven world-class childhood cancer centers have been invited to apply by August 14th. The award recipient will be announced in November. Pediatric cancer is the number one cause of death by disease of children in the U.S., and more than 13,000 children are diagnosed with cancer every year. Founder and President of AeroPress, Inc. Alan Adler says funding the award is a natural fit for his groundbreaking company, whose AeroPress designs are a breakthrough in coffee brewing technology. For more information about this award, please visit https://aeropress. com/cookies-for-kids-cancer-award/. Nuzee Responds To Covid-19 NuZee, Inc. (OTCQB: NUZE) announced that it is offering 100 independent roasters affected by COVID-19 up to 500 Coffee Blenders’ t-bag style, singleserve pour-over coffee pouches, free of charge. The offer is open to the first 100 roasters to contact NuZee, complete the necessary fields found in the link below. This service is
being offered by NuZee at absolutely no charge including shipping and with no obligation. Details and the form can be found: https:// pourovercopacking.com/corona-freesamples-offer/. “We are committed to supporting our industry colleagues at this difficult time,” said Travis Gorney, President & COO. “These pouches will be manufactured at our production facility in Vista, California which operates with Level 2 SQF Certification by the Safe Quality Food Institute, assuring that our products are produced, processed, and handled according to the highest standards. On behalf of everyone at NuZee, stay safe and stay healthy.”
Cafection | Evoca Launches Contactless Coffee Ordering Technology Sophia Touchless Solutions becomes the new way to order a cup of coffee Cafection | Evoca unveiled its latest IoT technology, making it possible to order a cup of coffee without ever touching the brewer. Sophia Touchless Solutions allows the clients to scan a QR Code with their cellphone, giving them access to the exact same drink selection as the machine screen. Sophia Touchless Solutions uses Cafection | Evoca proprietary Sophia platform, an online technology developed seven years ago which connects coffee machines in real time to a server through a cellular network. With a simple upgrade, OCS operators can enable contactless ordering on their brewers in less than 15 minutes. With the ongoing global situation and the growing demand for cleaner and safer solutions, Sophia
Touchless Solutions is more than welcomed in the coffee industry, greatly affected by the pandemic outbreak.” New Coffee Honors Rick Peyser, Coffee-Farming Families, Food Security Food 4 Farmers is proud to release Roasted Rick’s, a limitededition coffee honoring the work of Rick Peyser and the farming families at the heart of the coffee industry. Peyser is co-founder of Food 4 Farmers and has been advocating for equitable livelihoods for coffee farmers and their communities for 30 years. All proceeds from Roasted Rick’s will fund Food 4 Farmers’ food security work in Latin America. Visit bit.ly/ RoastedRick for more information and to donate. Special Offer of Support for Roasters CYA is Asset Tracking and Service Management Software is designed for Coffee People by Coffee People. As a way to build future value in the midst of this unprecedented global pause, we are offering Roasters and Service Companies the use of CYA Basic Software at no charge to clean up your list of capital assets, survey your deployment and plan for greater efficiency when your business ramps up. We’ll help you clean up and load your assets, provide barcode tags for scanning, and video training. You’ll start to build searchable and verified
Ken is President of Ken Shea and Associates, providing specialized solutions to operators and suppliers in the Coffee, Tea and Water Industries.
data about your assets, a large source of company value, and the engine of coffee sales. Free through June 30th. After that, we hope you’ll stay with us. Either way, we’ll provide you with your asset list. First come, first served. Let’s talk! TEXT or Call us: 224 600 3264 https://www.cya.coffee/
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Economic Implications of COVID-19 by Kirsten Nelson, TBO Marketing
The Obstacles and Opportunities During a Global Pandemic
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he coffee industry has not been immune to the far-reaching effects of COVID-19. We are experiencing global impacts on both supply and demand sides of the economic equation. We find ourselves with obstacles and opportunities as participants in the coffee community as we learn to navigate the significant challenges of a world filled with unknowns. Which Way Will the Economy Swing? Economists, including Leslie Lipschitz and Susan Schadler, are keeping a close eye on indicators for inflation and deflation. [link: https://www.barrons. com/articles/this-is-no-textbook-recession-51590065124] Either direction will present businesses with significant challenges. Lipschitz and Schadler caution that inflation will increase the pressure on already tight profit margins by increasing the costs of inputs and supplies. Similarly, deflation will put pressure on profit margins by affecting profit due to a decrease in demand as consumers buy less in response to shrinking discretionary income. Potential Impacts and Indicators of Inflation In general, inflation creeps in as prices of goods and services increase, causing the purchasing power of the dollar to decrease. This creates a gap between supply and demand, where customers scramble to purchase from a limited supply of goods (think toilet paper shortage in the U.S.). Supply shortages cause the price of goods to increase. While charging more for a cup of coffee sounds excellent, each cup of coffee you produce will cost you more to make, too, putting a tighter pinch on already tight profit margins. Supply chain interruptions are likely to continue to occur as outbreaks of COVID flare-up in different parts of the world. Challenges and expenses of getting your finished products into the hands and coffee mugs of your customers are likely to increase as COVID continues to affect the entire global supply chain. It is critical for business owners to keep a close eye on inventory and suppliers to manage any shortages or surpluses swiftly. Critical Considerations for Potential Inflation • Managing profit margins and cash flow is crucial. • Many consumers are experiencing pent up demand after staying home to slow the spread of COVID. • It may be challenging to keep up with demand while managing profit margins pinched by the higher cost of inputs into your final product, which can be further complicated by supply chain interruptions. Potential Impacts and Indicators of Deflation The U.S. Great Depression is a classic example of an economy experiencing deflation. When deflation is present, banks, businesses, and consumers show signs of being hesitant to lend or spend as interest rates drop and unemployment rates climb.
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Businesses have begun to reopen and produce goods and services. However, consumer demand is still lagging behind production levels. Many people are still unemployed across the world. Others are again staying home and aren’t able or willing to go out in public and to stores yet and risk exposure to Coronavirus. This decrease in consumer demand causes prices to fall, tightening the pinch on profit margins.
Critical Considerations for Potential Inflation • Profit margins are under pressure due to falling prices for goods and services, while any payments to lenders remain the same. • Work with your lenders to negotiate interest rates or payment plans. • Keep an eye out for government and other small business grants that are available to help businesses weather this economic downturn. Smart Strategies to Make Your Business Model Pivotable Whether we are dealing with inflation or deflation, COVID-19 has made it abundantly clear that we are indeed a global economy. Just because coffee is a commodity and an essential part of millions of people’s daily lives does not exclude us from resulting fluctuations in supply and demand. Adopting a smart, strategic approach to adapt to uncertain times proactively can make all the difference. Here are a few ideas you can address in your own business to make your business model more adaptable to economic uncertainties: • Look for efficiencies and optimization opportunities to streamline your business. Manage inventory levels carefully. Cancel unneeded expenses. Eliminate product offerings with low-profit margins are all ways you can preserve cash flow. Take advantage of government grants and small business resources wherever possible. • Connect with your customers. If you don’t already do so, an email newsletter and strong social media presence are excellent ways to stay in contact with your customers and get input and feedback from them to help guide your business decisions. • Set customer expectations to adapt to supply disruptions. Keep in touch with your customers. Update your hours and contact information on your website and make it easy for your customers to reach you. Let them know if they should expect any delays or changes in your products or services. • Make your products available in different channels. Online consumer spending is climbing. If you don’t already, consider selling your products online for curbside pickup or delivery. • Expand your product offerings. How can you fill a different demand with your current infrastructure? Are there new customer needs created by COVID you can fill? Look for creative ways to expand what you offer to add value to the customer experience. • Collaborations and alliances. How can you expand on what you already offer? Look for potential partnerships and collaborations with other companies to boost your capacity in a crunch or to provide new products or services to serve your customers better. The unknowns of what will happen next as we move forward in uncertain times can seem overwhelming. Keep in mind that disruption always brings opportunity along with challenges if you choose to seek them out and embrace them. Be proactive in taking steps to keep your business agile and to make weak areas secure. Rely on existing strengths and grit to expand resilience. Engage with your customers. Participate in the global coffee community. We are stronger together.
Covid Crisis 2020
Kirsten Nelson
Advertisers Index Company....................................................... Phone......................................................... Website............................... Page Add A Scoop / Juice Bar Solutions Inc...................................... (415) 382-6535................................................................addascoop.com.....................................................16 Aeropress Inc.............................................................................. (650) 493-3050...........................................................aeropressinc.com.....................................................14 Cablevey Conveyors................................................................... (641) 673-8451................................................................... cablevey.com...................................................... 5 Costellini’s................................................................................... (877) 889-1866................................................................ costellinis.com.....................................................14 COVID Relief Fund -for Guatemalan Street Cleaners............... see web............................................... https://youtu.be/3PHH1k5_0zY......................................................11 Don Pablo Coffee Roasting Company...................................... (305) 249-5628..................................................... donpablocoffee.com......................................................11 Fres-co System USA Inc............................................................. (215) 721-4600.......................................................................fresco.com...................................................... 2 Grounds for Health.................................................................... (802) 876-7835.....................................................groundsforhealth.org.......................................................7 Huhtamaki.................................................................................. see web................................................us.huhtamaki.com/comfortcup.....................................................16 International Coffee Consulting................................................ (818) 347-1378................................................. intlcoffeeconsulting.com...................................................... 9 Java Jacket................................................................................. (800) 208-4128...............................................................javajacket.com......................................................11 Primera Technology Inc............................................................. (800) 797-2772...........................................................primeralabel.com.....................................................14 Texpak Inc | Scolari Engineering............................................... (856) 988-5533................................................................scolarieng.net..................................................... 17
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