CASE STUDY: A Coffee Ship with a Kick Part 1–A Job Well Done

In previous case studies, I said that I wouldn’t call out the name of any businesses that I named in my Case Studies.  I said that because I do not wish to inadvertently harm any businesses that I discussed.  I am about to break that rule, however… but for a reason.  I am naming this business because I think they are doing so much right, they deserve the accolades.  However, no matter what business you are in, there is always room for improvement.  So today, I will name this business, point out everything they are doing right, and then make recommendations on how to make their business even better. 

AND THE “AWESOME JOB AWARD” GOES TO… JAVA JOE’S

Today’s case study is a little coffee shop in Ventura, California named Java Joe’s (www.MyJavaJoes.com).  Located right off a freeway exit, they are in a shopping center that thrives on “turn over” (i.e., people coming and going in relatively short periods of time) and on the Century 16 movie theater a mere 100 feet from their doors. 

One of the things that makes this coffee shop so special is the themed interior.  It is an “Artsy-Fartsy” type of coffee shop (an official term) that works hard to create a relaxed atmosphere which soothes the more creative souls.  The walls are painted in exquisite detail to give the feeling of being in a garden somewhere in Mexico.  There is also artwork on the walls from local artists, everything from paintings to photography, and yet the walls are not overwhelmed with this art.  To make it even more soothing, the coffee shop plays anything from light jazz to samba music (and other “cultured tunes”) depending on who is the barista of the day. 

“And the coffee ain’t bad either…”

Actually, the coffee is top notch, as are the teas that are offered.  The food selection is your usual carb-loaded pastries, but they are gourmet pastries that are obviously cooked and brought in from whoever the cook is.  (In other words, the food here does not come from plastic shrink wrappings.)  And the price – from the coffee to the pastries – are all affordable, yet still in line with their competitors.  This coffee shop has been in business in the same place for 18 years, so they must be doing something right. 

But what this coffee shop has done best is to identify it’s core customer (the artists and the movie-goers) and it’s gone out of it’s way to attract and satisfy that clientele.  This one strategy alone is a brilliant way to keep a business going. 

What They are Doing Right

Besides the themed atmosphere, there are many things that this shop is doing very well in order to ensure the longevity of their business and their attractiveness to their customers.  These things are:

1. A Small Stage:  While this place is not very large, it has still managed to squeeze a small stage into one corner (with microphones, speakers and lighting) for the use of local performing artists.  They even book events almost every night of the week.  This stage is a very intelligent move for the business for three very simple reasons: 
   1. The stage in no way detracts from the feeling of being an Artist’s hangout but instead adds to the theme. 
   2. The FREE nightly “mini-concerts” that happen at this coffee shop are loud enough to be heard at the movie theater’s main entrance only 100 feet away.  That means that patrons leaving the theater can hear the music, and are more likely to be enticed to come and listen instead of heading straight home.  Once in the doors, the odds that they will buy something increase dramatically.
   3. By having a stage that hosts local artists, those artists actually unwittingly do the advertising for the coffee shop.  The musicians and poets want their friends and family to come hear them play, so they tell everyone they know to come to the coffee shop the night they perform.  The coffee shop in turn gets an increase in product sales while the performing artist is on stage.  It’s a win-win situation.
2. A Boutique Shop:  Since the coffee shop caters to an artistic demographic, they further provide for their client’s needs by offering a good selection of clothing, jewelry, pins, magnets, etc… all tailored to the artistic eye.  Furthermore, since they recognize that artists are not necessarily prone to spending lots of money (i.e. the term “struggling artist”), the prices are incredibly reasonable.  Rings, necklaces, magnets and pins range in price from $1 to $20 with the average item being around $3 to $5; Clothing items are less than $20; Bags are $5 and up.  The shop also sells promotional mugs and even offers Artistic Bamboo Coffee Sleeves for $7.  It is a great way to up their sales, and since every time I visit the shop, I see that the inventory has completely changed, I can safely assume the sales are working. 
   1. A Quick Note:  One of the things that make this boutique truly remarkable is that the items are all one-of-a-kind items.  It is very rare to find a duplicate of anything in the store.  This is another draw to the artistic clientele since artists tend to shy from the idea of being like everyone else.  It is another way that this shop is catering to their customers’ needs and wants. 
3. Free Internet and a Pay-by-the-Hour Computer to Access:  While it is common practice nowadays for coffee shops to offer free internet access, not every coffee shop offers a computer for the customer to use that internet access.  It is a smart practice for this coffee shop because while the coffee shop can draw in another type of artist (the writers like myself), the shop recognizes that not everyone has their computer when they visit, or that not all of their patrons have either a computer or internet access.  (I know… it boggles the mind that not everyone automatically owns a computer.  I mean, “how do they live!?”)  And the cost to access the computer is only $2 for 15 minutes, which is a very reasonable price in their local area.  (However, if they did want to draw more people to their coffee shop, they should offer use of this computer for free.)
4. Artwork for Sale:  Again, the artwork adds to the overall feel of the coffee shop, but it is smart for another reason.  Since the artist wants to sell their artwork, the coffee shop does not have to pay to add decoration to their walls.  They allow local artists to show their work for free, and they get unique artwork that is constantly changing.  Plus, the artwork is not expensive, so the likelihood that the store will help local artists make money is much higher.
5. A Credit Card System that Allows for Tips:  In my experience, service jobs that allow for tips often have more satisfied employees than service jobs that do NOT allow for tips.  The reason for this is simple… the tips go to the employees; the employees make more money and thus, they employees are more likely to work at that business longer.  Most businesses accommodate this employee-keeping strategy by tossing a tip jar on their counter.  This is fine for all of the customers that pay cash, but more and more people nowadays pay with a debit / credit card.  Not only that, but debit / credit card customers are more likely to spend MORE at a business if they can use their card instead of cash – even as much as paying 25% more.  Yet since most coffee shops do not have a line for tips on the credit card receipts, the opportunity to tip an employee with a credit card disappears… as does the potential income for the employee.  Thus, adding a tip line actually increases the money the employee will make and thus keeps them longer.  Again, another strategy that ensures the employees give their very best in customer service while also paying they what they are worth. 
6. A Movie Board:  (Personally, I think this one is a stroke of genius…)  Since this coffee shop is so close to the movie theater, the baristas were constantly being asked if they had seen particular movies and what their overall opinion was.  Since the baristas couldn’t see every movie in the theater (after all, there are 16 individual theaters), they found a way to answer their movie-goers needs by posting a white dry erase board that lists all of the movies currently playing at the theater.  They then attached a dry erase marker to the board, and put up a rating system…for the customers.  The customers can then rate the movie they saw on that board whenever they wish.  The biggest benefit here is that the customer’s become a little more emotionally involved with this shop (since they are now “shop movie critics”), and they can see how other locals are rating movies they might wish to see.  It is a big draw for anyone leaving the movie theater to “pop over”, rate a movie, and then grab a coffee before heading home.  It answers their needs on a logical and an emotional level.
   1. An Even Bigger Bonus:  While the bonus to the patron and the business owner are obvious (answers for the first and money for the second), there is another benefit here for the business owner.  That bonus is a demographic snapshot of who their customer is.  In other words, with just a glance at this board, they can see how many movie patrons are coming to their theater in any given time period, and then compare it to their sales to see what percentage of their customers are movie patrons.  If they visually see that the number of ratings are dropping on the board, they can run an ad in the movie theater to up their patronage in any particular time period, and especially during sales slumps.  All they would need to do is write down the numbers at the end of a given time period (like weekly or monthly) and then compare it in the next time period to see if their movie patrons have dropped or increased.  They can then build a marketing campaign based solely on the movie theater and this movie ratings board.  Business is down – run a movie ad.  A Blockbuster is coming out this weekend – pull the ad.  (Like I said… genius.)

Come back tomorrow to read the article (CASE STUDY: Coffee Shop with a Kick Part 2–What They Can Do Better) on what they could be doing better, and how you can apply these lessons to your business.

Originally posted 2011-05-29 14:33:49. Republished by Blog Post Promoter