Slowing customer spending – Smart moves for cafe owners

Understanding the shift in cafe spending

Across the cafe sector, customer spending has taken a hit. Rising inflation and the broader economic climate make people rethink their discretionary spending, impacting many small businesses directly. Customers are often opting for lighter snacks over full meals or reducing the number of cafe visits per week. We’re seeing customers opting to reduce the number of coffees they have per day. Instead, they are often choosing to spend more on premium coffees and coffee experiences. We explore this factor a little further on.

In times like these, doubling down on your strengths and unique value can make all the difference. Are you known for top-notch customer service, lightning-fast order preparation, or exceptional product quality? What sets your venue apart from others on the street?

Here are some actionable ideas to enhance customer value and boost sales, even during tough economic times:

Offer added value thoughtfully

While the classic 'Would you like fries with that?' feels overused, there’s a smart way to add value and make the customer feel appreciated. Offering a small sample of your batch brew or an in-house baked cookie can introduce customers to something new without the pressure of a hard sell. This not only creates a positive experience but might also connect customers more deeply with your offerings. Check out our Boosting cafe retail sales and elevating customer experience article for some more practical tips on connecting with customers.

Improve customer comfort and experience

Step back and assess your venue from the customer’s perspective. Are there elements that might detract from the dining experience, like uncomfortable seating or a crowded menu layout? These seemingly minor details can influence customer satisfaction and impact their likelihood to return, especially if they’re looking for a comfortable place to relax or work. If dine-in customers are more valuable to your business due to multiple purchases per visit, a few adjustments can make a noticeable difference.

Highlight premium offerings

In a rush to offer low prices, many businesses risk squeezing their profit margins. However, customers still seek premium products and unique experiences, even in tighter economic times. Instead of competing on price, highlight indulgent snack options or high-quality coffee choices, like a Single Origin coffee at a higher price point or perhaps the top-shelf Expedition offering. A premium product allows you to offer an experience, not just a quick caffeine fix and distinguishes your cafe as the place to enjoy a memorable cup, not the cheapest cup on the street.

Embrace social media with authenticity

Promoting your cafe on social media doesn’t need to consume tons of time or money. A genuine presence on platforms like Instagram, Facebook and TikTok can help potential customers get a feel for your brand and venue before they even walk through the door. Avoid chasing every trend—like the latest TikTok coffee craze (they are not all great)—but focus on sharing your venue's unique story, values and offerings. We wrote about jumping on TikTok trends: Should Your Cafe Follow Every TikTok Trend?

Lastly, lean on partnerships for support

At P&R, we’re proud to support and help our wholesale partners grow their customer community and, most importantly, their profitability. I’m Martin, a business specialist at P&R. I love to help our partner venues thrive despite the economic times we’re in. Are you interested in finding out more about becoming a wholesale partner? Reach out to us here and together, we can explore how we can help grow your business.