5 minute read

Kicking on with coffee

WITH ALCOHOL CONSUMPTION ON A DOWNWARD TRAJECTORY, SHREWD OPERATORS ARE LOOKING TO COFFEE SALES FOR GROWTH. CRAIG HAWTIN-BUTCHER DOSES UP ON HOW CAFFEINE CAN HELP HOTELIERS HIT THE HIGH NOTES.

The apparent consumption of alcohol per person in Australia has fallen again, and is now at levels not seen since the 1960s, according to data released in September by the Australia Bureau of Statistics (ABS). The main driver has been reduced beer volumes, with an average decline of 2.4 per cent per year over the last 10 years, though there has also been a decline witnessed in wine sales.

With that in mind, is it now time to pay more attention to the opportunities presented by non-alcoholic beverages and coffee in particular? With high margins possible, the opportunity to maximise those morning opening hours and to support or encourage a brunch service and foodservice, for those who get it right, the potential profits are highly attractive.

Coffee in the on-premise is an open opportunity

CAFÉ COFFEE CULTURE

“There is recognition from the on-premise sector that coffee has evolved to an important part of everyday life,” says Michael Taylor, national sales manager at Di Bella, Australia’s second-largest supplier and roaster of specialty coffee.

“Coffee is communal and conversations that may have taken place around the bar over beer or wine now might take place at the suburban café sitting on milk crates over coffee,” says Taylor.

But far from representing a threat, Taylor is clear that mornings represent an obvious opportunity for owners and operators.

“I have supported clubs in the past that have chosen to open early with a full breakfast and high-quality coffee offering,” says Taylor. “Their coffee sales have moved up to volumes seen at some successful cafés. A successful coffee offering can open up a whole new client base not seen during the ‘traditional hours’ and provide a platform to a larger market.” As a result, he says, many hoteliers are upping their game, looking to lure customers back into the on-premise through a quality offering.

“We are seeing higher quality equipment sitting on benches and bars,” says Taylor. “The business may have even built a hole-in-the-wall coffee offering for those important coffee trading hours”.

SOPHISTICATED CUSTOMERS

Such adaptations reflect the realities on the ground around coffee consumption and appreciation in this country.

“The most important part to recognise for service of coffee in Australia now is that the customer base is very sophisticated,” says Craig Simon, former three-time winner at the Australia Barista Championships and fourth-placed at the World Barista Championships. Simon is also Australia’s first certified Q Grade Instructor, a programme that governs the international certification of tasting and grading coffee.

While it’s fair to say Simon operates at the top of his game in the highly specialised world of high-grade, specialty coffee, the relevance to hoteliers of a quality coffee service in pubs isn’t lost on him.

“Customers have been exposed to coffee in high quality specialty coffee cafés – Australia is regarded as the most advanced and sophisticated coffee scene in the world at the moment,” says Simon. “This means that you are going to need to put a little bit of thought into making sure you are serving a high quality, consistent product.”

INNOVATIVELY ENVIRONMENTAL

Not only are expectations of quality rising, the need to entertain and innovate is ever more important.

“In recent years, hotels and pubs have been focused on offering a wider variety of experiences and flavour combinations for their patrons,” says Mitch Monaghan, Nespresso coffee ambassador.

“While we are seeing this in the vast range of different coffee cocktails now on the market, we are also seeing an increased diversity of morning and lunchtime coffee options as Aussies are looking to spice up their beverage routine.

“From iced lattes with cold frothed milk to flavoured macchiato, establishments are experimenting with recipes to bring about a strong and lasting impression to the patron and guest experience,” says Monaghan.

It’s clear that shrewd operators are indeed putting thought and affordable levels of investment into this burgeoning growth area. For operators concerned about spiraling costs to enact a quality offering, Simon has this to say:

“This doesn’t necessarily mean super expensive equipment, coffee and staff, but it does mean making sure you are serving a good coffee rather than just having a machine on the bench.”

In addition to the quest for novelty and the explosion in popularity of espresso martini, environmental awareness is increasingly important to consumers. Here, pubs have a distinct advantage with the provision of ceramic, not paper, cups.

“A SUCCESSFUL COFFEE OFFERING CAN OPEN UP A WHOLE NEW CLIENT BASE NOT SEEN DURING THE ‘TRADITIONAL HOURS’ AND PROVIDE A PLATFORM TO A LARGER MARKET.” – MICHAEL TAYLOR, NATIONAL SALES MANAGER AT DI BELLA ROASTERS.

“We are also seeing the rise of the ‘conscious consumer’,” says Nespresso’s Monaghan. “There is an increasing focus on sustainability across economic, social and environmental factors, which is driving change in purchasing decisions.”

Citing Australian research from last year, Monaghan says: “With 50% of 18- 24 year olds saying they only drink sustainably sourced coffee … eco-conscious millennials are expecting brands to manage their impact across all choices the businesses make.”

TWO TO TRY

The Nespresso Professional Aguila 220 machine has 12 pre-programmed coffee recipes at the touch of a button, with a range of 13 pod coffees available for its Professional machines. Pods are recyclable and hermetically sealed to better ensure freshness while the manufacturer looks to ensure ethical relationships with coffee producers.

The Jura Professional WE8 also has 12 pre-programmed coffee recipes, offering a fully-automated whole bean-tocup provision. A solid build but weighing in at just 10kg and a small footprint, the Jura prides itself on a premium build and offers buyers complete flexibility on where they source their beans from.

AUTOMATE TO INNOVATE

In terms of overcoming barriers, the price of equipment and cup sales are probably going to be hoteliers’ biggest concern, argues Simon.

“Making espresso coffee while not difficult is still an art form,” says Simon, “and having a high quality barista on staff in a pub or bar where coffee sales probably aren’t as high as a café is an expense that doesn’t make much sense for the business owner. Finding a solution that can automate the process of making good coffee is probably the avenue to investigate.”

Fortunately the prevalence of good quality, affordable automatic machines can overcome many issues around consistency of service and training and managing staff costs.

“Nespresso makes it possible for pubs to deliver a high quality, perfectly portioned coffee with just the touch of a button,” says Stefan Vermeulen, head of Nespresso Professional. “Regardless of who makes it, and especially during busy periods like lunchtime and the evening, [automatic] machines help publicans achieve excellent coffee in every cup without the need for a trained barista on each shift.”

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