10.31.11
Michael Szyliowicz

For an industry obsessed with sustainability and conservation, specialty coffee shops are among the most wasteful I have ever seen. For all the talk of environmental protection and safeguarding precious natural resources, that seems to fly out the window, or, more accurately be poured down the drain, when making a single cup of coffee.

I frequent a popular café that serves a famous national roaster’s coffee by the cup in Denver and was just honored by the local paper as having the best coffee in the city. Their coffee is served by the cup only, and they have expanded their menu to offer several different coffees daily, all made using single brew methods such as pour overs, chemex, and siphons. Every time I order a cup and stand by the bar to watch it made I cringe.

The barista first fills a long handled pot with hot water; then he or she places the filter in and adds water, which flows through into the carafe below and is then thrown away. Next, the filter is filled with grounds, and water is poured in to make the coffee.

As the coffee is brewing, more hot water is poured into the mug, ostensibly preparing it to receive the sacred brew. When the coffee is ready, the water in the mug is poured down the drain. The coffee is then poured into the mug, and the remaining water from the long stemmed coffee...

10.24.11
Michael Szyliowicz

I am a big believer of innovation and am continually frustrated by the lack of innovation in the specialty coffee industry. There have been no significant new product introductions for years, and every trade show I visit has the same roster of exhibitors showcasing the same products for beverages.

At long last, there is a product that is taking the industry by storm, and I see it popping up in many cafes. And it isn’t a drink—it’s breakfast.

Oatmeal has burst on the scene in the last several years and has become the must-have menu addition. Stores are embracing it as consumers ask for healthier and protein filled options to accompany their morning drink. Distributors are selling it both on its own merits and as a way to sell other items to cafes that are seeing increased sales.

One coffee roaster told me that his coffee sales increased because his customers now want better coffee to wash down the oatmeal. I never expected innovation for specialty coffee to be steel cut, but at last something is spurring new ideas in an industry starving for new ideas.

10.10.11
Michael Szyliowicz

For years fizzy drink sales were the rule—not the exception—when eating out.

QSRs and fast food operators relied on sodas for both easy sales and high profits. Lately, though, that trend is changing. Fewer fizzy drinks are being sold, and there is a simultaneous rise in specialty coffee and tea beverages.

Just check out this recent study by The NPD Group, which examines how soft drink sales have diminished drastically over the years. The chart on the right side of this post shows how iced tea and specialty coffee have really surged in the past year. 

One astute operator I spoke to has showcased different flavors of iced tea next to the soda dispenser and watched sales increase fivefold. Other players are featuring higher ticket and higher margin coffee drinks to accompany their hamburgers and salads. Drive-thrus are no longer the sole province of soda pop. Like drinks that are left out too long, carbonated beverage sales are flat. Consumers have been trained to expect more variety, and successful operators are those introducing the unusual, interesting, and differentiated drinks. Unusual teas. Iced coffees. Flavored lemonades. Energy drinks.

That just scratches the surface, and I’m looking forward to seeing what bubbles up next…