Shari’s Restaurants Perks Up Coffee
Shari’s new premium coffee program satisfies customer cravings and management’s bottom line.
Sherry A. Hatlestad -- Chain Leader, 8/1/2007
Flowing with the tide of so many other restaurants, Shari’s Restaurants too is serving a better cup of joe.
Not any easy decision to make, it was a necessary one: Coffee sales were down, and customer expectations were up, says Kevin Bechtel, senior vice president of purchasing, R&D and menu development for the family-dining restaurant chain. Shari’s systemwide sales were $157.2 million in 2006, on an average check just under $8.
Last October, the 98-unit chain based in Beaverton, Ore., upgraded its coffee program not only with a better bean but with new equipment and branding to boot.
From Farm to Cup
The new coffee program rollout encompasses both back- and front-of the-house improvements. Shari’s upgraded its coffee bean from Robusta to 100 percent Arabica. It installed all new brewing systems with insulated urns that keep the coffee hot without sitting on heating elements that adversely affect the flavor of the coffee.
Shari’s also revised its service method, adding insulated stainless steel carafes and china mugs with the Arosta logo, created to brand the upgraded coffee choices. In all, the cost—equipment, training and upgraded product—totaled $300,000, according to Bechtel.
“We spent about 18 months in evaluation of product, equipment and manufacturer that we would partner with,” Bechtel says.
The risk seems to have paid off. “We believe customers have responded favorably based on our coffee growth and the fact that we have reversed our trend of a 3 to 4 point decline in beverage incident,” says Bechtel. In addition, sales have improved by about 6 percent and margins by 2 percent.
Customer Choice
Shari’s offers two blends of coffee: the Traditional Roast, a smooth, medium blend with a hint of sweetness; and the Barista Bold, a dark-roasted, full-bodied coffee. Bechtel says, “Our goal was to provide a coffee to meet all of our guest expectations.” The Traditional represents about 65 percent of coffee sales, the Barista about 20 percent and decaf 15 percent.
And for the socially conscious coffee drinker, all the blends include beans purchased from Rainforest Alliance Certified farms to support sustainable farming practices. (Read “Fair Trade Coffee Basics” for more information.) While offering fair trade coffee may enhance the overall image of the chain, “I do not believe that it will be a point of difference for our restaurants,” says Bechtel.
Practice and Promotion
The rollout required training on all levels from the executives and corporate staff, to hourly employees and even customers. Vickie Irish, Shari’s vice president of training, worked with the manufacturer to develop a training program adaptable to all levels. It centered on coffee history, product, equipment and sales tactics.
The end goal was to develop and educate the customer, increase customer satisfaction and improve sales.
The coffee and service upgrade was supported with a major marketing push. David Archer, vice president of marketing, hyped the new program with menu promotions and descriptions, newspaper articles and press releases. A television campaign ran in the restaurant’s major markets—Oregon, Washington, California, Wyoming, Idaho and Nebraska.
In addition, Shari’s places a great emphasis on in-house marketing such as staff promotions and contests, and a branding program that included retail coffee and travel mugs. (Read “Marketing a Successful Coffee Menu” for more information.)
And while Shari’s is far from a specialty coffee chain, it does have a bit more in common by way of its coffee. This summer it rolled out Arosta iced coffee and iced mocha, and it is currently evaluating some seasonal blends to keep the buzz alive.
Sherry A. Hatlestad is a Chicago-based freelance writer. She was formerly managing editor of Chain Leader and editorial project manager on Café Cuisine magazine.