Economic Crunch: How Will It Affect Our Business? - Barista Exchange2024-03-28T11:18:34Zhttps://www.baristaexchange.com/forum/topics/1688216:Topic:158936?feed=yes&xn_auth=noInteresting thread, kind of l…tag:www.baristaexchange.com,2017-11-26:1688216:Comment:16254182017-11-26T21:50:34.078ZBrian Millarhttps://www.baristaexchange.com/profile/BrianMillar
<p>Interesting thread, kind of like a time capsule. In 2006-7 I observed the beginning of the end spooled from the rise in gas to the $2.00 mark. It shook up everybody's working capitol, from the daily commute to importing/exporting goods, and employers were forced to increase staff pay and lean their operations to include laying off of staff. Materials were now more expensive to acquire, products more expensive to produce and ship, and our cost of living went up everywhere without anything…</p>
<p>Interesting thread, kind of like a time capsule. In 2006-7 I observed the beginning of the end spooled from the rise in gas to the $2.00 mark. It shook up everybody's working capitol, from the daily commute to importing/exporting goods, and employers were forced to increase staff pay and lean their operations to include laying off of staff. Materials were now more expensive to acquire, products more expensive to produce and ship, and our cost of living went up everywhere without anything to compensate. </p>
<p>When the housing market crunch hit, people no longer had their reserves, equity to borrow upon, SBA and banks stopped giving out business loans, and that killed those in my sector that cater to supplying the wares and builds for our clients setting up shop. Luckily for me, my operation of one "even though the public doesn't know it due to what I'm able to produce", I was able to scale back a bit on shop accommodations and diversify my portfolio into different construction and IT related fields to ride out the storm. Well, that was rather more then just a storm, it was a lengthy, years upon years of slow recovery, most of my competitors went belly up because they couldn't adapt or had the flexibility I have to change. It's only the past couple of years where things are starting to resemble somewhat along what it used to be, but by no means what it was in the 90's or early 2000s. </p>
<p>During the darkest times for the average person, as they lost their homes and possessions, went bankrupt, had to survive with less, they filled in the gaps by keeping their creature comforts to make themselves feel better, for at least while drinking that latte, or gourmet meal, they could forget about their struggles and loss for a moment. No longer being taxed with a mortgage or car payment they in the end had more disposable income because it wasn't tied up into those obligations. </p>
<p>There was a change in discernment and quality with their desires, the falling apart bare minimum coffee shops were no longer getting frequented as much, forcing some to upgrade, others to fold, and like my industry leaned out the competition. The big chains did fill in those gaps because they are large enough to ride out the storm, SB for example can keep a cafe open for years without making a profit since it's other cafe's are able to support them. If you look at the lay of the land today, 2017, there are many more chains and big players on the scene then the small mom and pops operations entirely due to the recession. It worked so well in their favor, their foot hold in the best locations firmly in place to this day makes it harder for new single owner shops to start up because the best locations are already taken up.</p>
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<p></p> I just started at a cafe in P…tag:www.baristaexchange.com,2010-08-25:1688216:Comment:9085512010-08-25T02:36:55.355ZAlex Helfenhttps://www.baristaexchange.com/profile/AlexHelfen
I just started at a cafe in Portland, OR. The shop has been in operation since 1991, but the most recent owners purchased it about a year ago. So far I'd say that business is good. I don't have a good idea on exact numbers, but the mornings are pretty busy and the afternoons/evenings are hit or miss.<br />
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The shop I worked at previously in Portland, ME was trending up when I left. I had concern at the end of 2008 when the writing was on the wall but all in all I'd say that we didn't suffer too…
I just started at a cafe in Portland, OR. The shop has been in operation since 1991, but the most recent owners purchased it about a year ago. So far I'd say that business is good. I don't have a good idea on exact numbers, but the mornings are pretty busy and the afternoons/evenings are hit or miss.<br />
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The shop I worked at previously in Portland, ME was trending up when I left. I had concern at the end of 2008 when the writing was on the wall but all in all I'd say that we didn't suffer too much. The customers are loyal and the product ended up not being as much of a luxury item as I thought it would be. I think if a business owner is smart and knows that the economy won't be consistently positive then he or she will have enough savings to cover any losses. Operate within the means and track every nickel because every nickel will count.<br />
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<cite>javaqueen said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/1688216:Topic:158936?id=1688216%3ATopic%3A158936&page=15#1688216Comment873246"><div>It has been several months since anyone last replied...<br/> <br/>
How is the coffee business in your part of the world?<br/>
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What sells now that is different from 4 years ago?</div>
</blockquote> We have had the same experien…tag:www.baristaexchange.com,2010-07-03:1688216:Comment:8775712010-07-03T20:11:38.428ZMelissahttps://www.baristaexchange.com/profile/Melissa58
We have had the same experiences as most everyone else who posted here...large increase in brewed coffee, daily customers have started coming in a couple days a week, etc. However, in the past 6 months sales have started dropping drastically. This could also be due in part to the fact that we are in a resort location and people are cutting back on travel. However, we still provide the best coffee in the county and are willing to do whatever it takes to stick with it. Even if it means moving…
We have had the same experiences as most everyone else who posted here...large increase in brewed coffee, daily customers have started coming in a couple days a week, etc. However, in the past 6 months sales have started dropping drastically. This could also be due in part to the fact that we are in a resort location and people are cutting back on travel. However, we still provide the best coffee in the county and are willing to do whatever it takes to stick with it. Even if it means moving into the kitchen, lol. Just kidding about moving in to the kitchen<br />
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<cite>javaqueen said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/1688216:Topic:158936?id=1688216%3ATopic%3A158936&page=15#1688216Comment873246"><div>It has been several months since anyone last replied...<br/><br/>How is the coffee business in your part of the world?<br/><br/>What sells now that is different from 4 years ago?</div>
</blockquote> It has been several months si…tag:www.baristaexchange.com,2010-06-26:1688216:Comment:8732462010-06-26T05:48:54.746Zjavaqueenhttps://www.baristaexchange.com/profile/javaqueen
It has been several months since anyone last replied...<br />
<br />
How is the coffee business in your part of the world?<br />
<br />
What sells now that is different from 4 years ago?
It has been several months since anyone last replied...<br />
<br />
How is the coffee business in your part of the world?<br />
<br />
What sells now that is different from 4 years ago? Tell me if this resonates wit…tag:www.baristaexchange.com,2009-10-04:1688216:Comment:6447562009-10-04T18:45:45.761Zjavaqueenhttps://www.baristaexchange.com/profile/javaqueen
Tell me if this resonates with what you are experiencing...<br />
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We all still have customers... many of whom still come in every day, but many don't.<br />
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There are those who have changed their orders to regular coffee rather than a specialty drink every day.<br />
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Some of the routine customers have started making their coffee at home rather than coming to the coffee shop and some reserve a trip to the coffee shop for a treat rather than a daily routine.<br />
<br />
Sales continue to be made, but the focus is…
Tell me if this resonates with what you are experiencing...<br />
<br />
We all still have customers... many of whom still come in every day, but many don't.<br />
<br />
There are those who have changed their orders to regular coffee rather than a specialty drink every day.<br />
<br />
Some of the routine customers have started making their coffee at home rather than coming to the coffee shop and some reserve a trip to the coffee shop for a treat rather than a daily routine.<br />
<br />
Sales continue to be made, but the focus is different.<br />
<br />
What do you see in your shops? I heard this the other day. S…tag:www.baristaexchange.com,2009-10-02:1688216:Comment:6424902009-10-02T16:48:41.545ZAaron Chttps://www.baristaexchange.com/profile/ACall
I heard this the other day. Seems timely to this thread's resurrection.<br />
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<a href="http://www.npr.org/templates/story/story.php?storyId=113134753">http://www.npr.org/templates/story/story.php?storyId=113134753</a>
I heard this the other day. Seems timely to this thread's resurrection.<br />
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<a href="http://www.npr.org/templates/story/story.php?storyId=113134753">http://www.npr.org/templates/story/story.php?storyId=113134753</a> So, here it is ONE year later…tag:www.baristaexchange.com,2009-10-02:1688216:Comment:6421122009-10-02T07:03:17.052Zray peckhttps://www.baristaexchange.com/profile/raypeck
So, here it is ONE year later. Were your right with your inclinations? 10-1-09
So, here it is ONE year later. Were your right with your inclinations? 10-1-09 I am reading responses that s…tag:www.baristaexchange.com,2009-07-30:1688216:Comment:5692932009-07-30T05:03:32.728Zray peckhttps://www.baristaexchange.com/profile/raypeck
I am reading responses that sales are up, down and about the same, along with seeing more brew sales than espresso. Does anyone of the Answerer's have hard data? Data would make a difference in what is truly so. Other than that, it is speculative. Maybe someone could make hash marks or something. Does have to be complicated.
I am reading responses that sales are up, down and about the same, along with seeing more brew sales than espresso. Does anyone of the Answerer's have hard data? Data would make a difference in what is truly so. Other than that, it is speculative. Maybe someone could make hash marks or something. Does have to be complicated. Give some background and what…tag:www.baristaexchange.com,2009-06-11:1688216:Comment:5147882009-06-11T18:32:59.197ZAl Sotohttps://www.baristaexchange.com/profile/AlSoto
Give some background and what you think is helping.<br />
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al<br />
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<cite>Alicia Noland said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/1688216:Topic:158936?id=1688216%3ATopic%3A158936&page=15#1688216Comment460291"><div>Personally, even though are shop is still relatively new, our sales have never been higher. hope it steadily continues to rise.</div>
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Give some background and what you think is helping.<br />
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al<br />
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<cite>Alicia Noland said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/1688216:Topic:158936?id=1688216%3ATopic%3A158936&page=15#1688216Comment460291"><div>Personally, even though are shop is still relatively new, our sales have never been higher. hope it steadily continues to rise.</div>
</blockquote> I am a new shop so I started…tag:www.baristaexchange.com,2009-06-11:1688216:Comment:5147862009-06-11T18:32:02.084ZAl Sotohttps://www.baristaexchange.com/profile/AlSoto
I am a new shop so I started with the market already down. Most of my customers will come once or twice a week. I have no Starbucks to deal with so that helps. But it is rough. We have good days and then we have ehh days. But what helps me the most is low overhead.<br />
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Al<br />
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<cite>Calli Costas said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/1688216:Topic:158936?id=1688216%3ATopic%3A158936&page=15#1688216Comment468246"><div>I agree with Brady. We have seen sales go down…</div>
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I am a new shop so I started with the market already down. Most of my customers will come once or twice a week. I have no Starbucks to deal with so that helps. But it is rough. We have good days and then we have ehh days. But what helps me the most is low overhead.<br />
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Al<br />
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<cite>Calli Costas said:</cite><blockquote cite="http://www.baristaexchange.com/forum/topics/1688216:Topic:158936?id=1688216%3ATopic%3A158936&page=15#1688216Comment468246"><div>I agree with Brady. We have seen sales go down a bit, everydayers come a few times a week and been sales have increased. Hopefully everything will improve soon.</div>
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