Boost Your Cafe’s Revenue

OUR PROVEN TIPS TO HELP YOUR BUSINESS THRIVE

With the rising cost of living and increasing prices across Australia, it’s more important than ever for cafes to find ways to boost their revenue and manage costs effectively. Customers are becoming more selective with their spending, and cafes need to deliver not only great coffee but also exceptional value and experience to stay competitive. By making some strategic changes and focusing on quality, you can navigate these challenges and keep your business thriving.

Here are some actionable tips and tricks to help you increase your cafe’s revenue.

1. set up a retail coffee space.

Selling coffee beans, brewing gear, and merchandise adds a profitable revenue stream and elevates your cafe’s brand. It also adds to the overall customer experience & establishes your cafe as the go-to for coffee lovers in your area.

Here’s a few tips to help you get started:

CREATE AN INVITING DISPLAY: Ensure your retail section is visually appealing. Use inviting lighting, shelving & signage that aligns with your cafe’s brand, and an uncluttered arrangement to draw attention.

KEEP IT STOCKED: Make sure your coffee offering is fresh & your shelves are well-stocked. Bare shelves don’t look overly inviting! Our singles & limited-edition coffees come pre-packed. We can also pre-pack our blend coffee tins but consider buying the empty tins instead to fill straight from your hopper as required. This keeps coffee fresh, minimises wastage and can give you more margin on the retail coffee.

CONSIDER YOUR RANGE: Think outside the square. Coffee is a no-brainer but consider expanding beyond coffee beans to include brewing gear, keep cups or merch. That delicious chilli oil you use, sell that too! Alt milks, tea, hot chocolate, or matcha – anything that you already source for the cafe, can also be sold as a retail product.

BUNDLE PRODUCTS: Encourage customers to purchase by offering bundles: a bag of coffee beans paired with a reusable cup or brewing equipment.

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MERCHANDISING MATTERS: Keep your retail shelves tidy, well-organised, and clearly labelled with prices. There are many creative ways to display pricing: stickers, magnetic tiles, display stands, hand-written signs, etc. Consider what you’ve already used for your display cabinets and whether that same signage could work here. Make sure your display is well within reach of the customer too – people love to touch & feel products before they purchase. If they have to ask a staff member for pricing or need the products passed to them, they’re more likely to walk away instead. Try to remove as many barriers to purchase as you can.

HIGHLIGHT THE EXPERIENCE: Customers often want to replicate their cafe experience at home. Offer suggestions, brewing tips, and recommendations for grinders and accessories – in some cases, the same gear your own baristas use.

ENGAGE YOUR STAFF: When it comes to coffee, your staff should know what each of the different coffees taste like, their origins & what makes them unique. That way they can actively promote retail items by sharing their personal favourites or offering advice, in the same way they would with the menu items. A friendly recommendation can go a long way in building trust and boosting sales.

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EDUCATE YOUR CUSTOMERS: Use signage, QR codes, or brochures to share brewing tips, coffee origin stories, or details about flavour profiles. Educated customers feel more connected to their purchases. Locale offers tasting cards with our blends & single origins featuring plenty of info about the coffee & farm, and QR codes that link to the product page for more info & suggested brew ratios.

PROMOTIONS & DISCOUNTS: Run limited-time promotions. Discounts on second purchases or seasonal specials can increase sales while adding a sense of exclusivity. We also encourage offering $1 off the original price of our retail blend tins if the customer brings in their own tin for refill. Not only is this better for the environment, it also saves you on the cost of the tin & increases your margin on the coffee.

ROTATING SELECTION: Keep your retail offerings fresh by rotating single origins and adding seasonal or limited-edition items. Locale has an excellent single origin program, with new & exciting coffees hitting the rotation regularly. Some customers will come for their trusty blend each week, but others will return to find something new to try.

2. master the art of upselling.

Upselling is a simple yet effective way to boost your average transaction value. Your team should feel confident enough to:

Suggest an extra coffee or pastry at the end of the meal.
Encourage add-ons like “an extra shot for just $1 more.”
Suggest premium options such as single-origin espresso or alternative milk.
Recommend specific specials or products that have a little extra margin.
Ask whether they’d like to take home a retail tin of the filter coffee they just had & loved in store.

3. signature offering.

Consider what makes your cafe stand out from the rest. Do you have unique drinks or food specials that customers come in specifically to enjoy? Think about:

In-season produce: Use fresh, seasonal ingredients to create specials that align with the time of year. Highlighting these on your menu or on socials adds variety and keeps customers curious.
Presentation matters: Invest extra effort into the presentation of your signature drinks or dishes. Beautiful plating or a visually striking drink can become a social media sensation.
Premium pricing: Customers are often willing to pay a bit more for something unique and well-executed. Signature offerings with thoughtful touches can justify a higher price point.

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4. reduce wastage.

Reducing waste is not only better from an environmental perspective, but it can also have a significant impact on your bottom line.

Milk management: With the price of milk going up exponentially, and the added workflow of all the different alt milks, getting a handle on your milk wastage is more important than ever. Many milk-based coffees have a higher milk to coffee ratio – roughly around 3-1 for your typical latte, flat white or capp. Your baristas should be properly trained to steam only the amount needed for each order. We can assist with any staff training required. Ask your rep about our handy waste calculator, it’s a great tool for you to see what a difference this can make.
Coffee calibration: Likewise with coffee, your barista should be regularly calibrating the grinders to ensure consistent dosing and reduce overuse of coffee.

5. thoughtful price increases.

FINDING THE RIGHT BALANCE

The coffee industry is facing unprecedented challenges, with green coffee prices reaching their highest levels in decades. And that’s only one part of the equation. As cafe owners, you’re also juggling the rising cost of milk, produce, wages, rent, insurance and more.

Adjusting prices can feel risky with many customers also struggling with the rising cost of living. Yet, when cafes keep prices low, it often comes at a high cost—undermining quality, cutting staff hours, or sacrificing your own livelihood.

Consumers are typically willing to pay more for the vibe, higher quality coffee & menu offering, and overall experience they get at a specialty venue—so price accordingly.

Coffee: We believe a regular coffee (made with specialty beans) should be up around the $5.50 mark – but this is obviously dependant on your individual business. If you’re well under this currently, set a goal and make small, incremental increases across the year until you reach your target price. There will always be people that are happy with a cheap $2.50 coffee, but they aren’t your target market as a specialty venue.
Milk: Reflect the rising cost of milk and alternative milks in your pricing. If your alt milks cost 20% more per litre than cow’s milk, add 20% to the cost.
Food: Small, regular increases on menu items can significantly impact your revenue.

6. leverage the power of social media.

Social media is a cost-effective way to attract new customers and keep your regulars engaged. Your social media should feel like an extension of your venue.

Here’s how to make the most of it:

Post consistently: Share daily specials, new menu items, or behind-the-scenes looks at your cafe.
Engage your audience: Respond to comments and messages promptly. Encourage customers to tag your cafe in their posts.
Use local hashtags & geotags: Tap into local communities by using hashtags specific to your area (e.g., #SydneyCafes). Or tag your location so people in your area can find your content.
Collaborate: Partner with local influencers/bloggers to reach a wider audience.
Engage with us: We love being tagged in your coffee posts and are happy to feature our cafe partners on our Instagram. Make sure you tag us @localeespresso so we can share the love.
Resources: We have some fantastic resources for getting the most out of your social media, including an easy-to-use guide and content library of info & images for you to share. Contact your rep if you aren’t sure how to access this.

7. build your community.

REWARDING CUSTOMER LOYALTY

As we know, customers are the heartbeat of any great hospo business. Rewarding your regulars can help to create a loyal community around your cafe, ensuring they come back again & again.

Loyalty cards: Offer a free coffee after every 10 purchases.
VIP discounts: Give exclusive perks to your most loyal customers, such as early access to new products/deals or an ongoing percentage discount on retail purchases.
Digital solutions: You can also use apps to track loyalty and send reminders or offers if you don’t like the thought of having printed cards.

If a structured rewards program isn’t for you – don’t underestimate the power of the out-of-the-blue freebie. You know who your regulars are, and how often they’re buying a coffee. Saying “this one’s on us” could make someone’s day and go a long way to fostering the same loyal community around your cafe.

8. maximise your space.

Do you have unused areas in your venue? Consider other ways to make them profitable:

Host events: Think coffee cuppings, latte art classes, or even local community gatherings – events could have a cover charge or simply be a way to get more people in the door. If the cost of the event is low, consider using the cover charge as prepayment ($5 to attend the event, get a free coffee)
After hours: Could your venue double as a restaurant or wine bar after hours? You’d need to factor in extra staffing & food costs but it’s a potential added revenue stream if rent costs are increasing. Or you could even consider hiring out your venue as a blank canvas for external events.
Eat Club: An app designed by restaurateurs to help venues fill tables at off-peak times by offering diners last-minute deals & discounts. The app now includes cafes, restaurants & food chains in most inner-city suburbs.

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9. educate yourself & your team.

Empowering yourself & your team with knowledge can only be a positive thing. Keep your cafe ahead of the curve by staying informed about industry trends. Here are some resources our team enjoyed for you to check out:

PODCASTS: ‘It’s Just Coffee’ (for Australian coffee industry chats) and ‘Australian Business Podcast’ (for small business owners) are both really insightful listens.

BOOKS: ‘The World Atlas of Coffee’ by James Hoffmann and ‘The Professional Barista’s Handbook’ by Scott Rao are must-reads. For the cafe owners, we loved ‘What I Know About Running Coffee Shops’ by Colin Harmon and ‘Count More Beans’ by Nadi Elias.

COFFEE BLOGS:

- Sprudge: A leading source of coffee news, featuring articles on brewing methods, cafe culture, and industry trends worldwide.
- Perfect Daily Grind: A resource for coffee professionals and enthusiasts, covering topics like sustainability, coffee science, and market insights.
- Barista Hustle: Free barista training resource (as well as a separate paid version) from a team of baristas, educators and product designers. Highly recommend their newsletter too.
- Basic Barista: An Aussie-based blog with recipes & brew guides, coffee industry takes & product reviews.

YOUR LOCALE REP: Sometimes you can be so hyper focused on your own venue you don’t get a chance to see what’s happening in the rest of the industry that may be of value to you. Your Rep knows the industry, and is well aware of what’s working for others, both in their own state and around the country. They are one of the greatest resources you have at your disposal!

Australia’s cafes are at the heart of our vibrant community culture. By embracing innovation, educating your team, and staying committed to quality, your cafe can thrive even in challenging times. Remember, every small change you make today builds a more sustainable and successful future for your business. Let’s work together to ensure Australia continues to lead the world in exceptional coffee experiences!

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