Not offering a 20oz?
Replies to This Discussion
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Permalink Reply by Bob Casalegno on
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I have a drive-Thru we offer 8,12,16,20,24 and 32 oz. We sell a lot of 32oz. cups of just coffee.
Brady said:
Seems like it would be straightforward for a currently-operating shop to do a what-if. Just take last week's data and replace all of the medium and large drinks with small ones. Use your current COGS for the smalls to work the cost number. Fixed overhead remains unchanged.
If you've priced your drinks correctly, your COGS percentage should be the same across all sizes. If it is, your net profit should be reduced by the elimination of the larger size.
If your COGS is out of whack and your margins are lousy on the larger size you might see no change or even an improvement... but you'd be better off by correcting your pricing.
Jason Shipley said:
Has anyone doe analysis on what eliminating the the larger sizes does to ticket average and how it affects net profit. From a quality standpoint it makes great sense but from a net profit standpoint does it hold up?
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Permalink Reply by Jay Caragay on
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Jason-
The move to eliminate 16/20z cups was predicated by a thorough analysis of our costs and profitability.
Quite simply, the 16z and 20z lattes were KILLING us on margin and profitability. Based on the quality of the ingredients and their costs, a 16z latte would have to be priced at $6.25 to make sense. Anything less would be throwing money out the window.
Once I did a thorough analysis, it made the decision to eliminate the sizes very easy.
Jason Shipley said:Has anyone doe analysis on what eliminating the the larger sizes does to ticket average and how it affects net profit. From a quality standpoint it makes great sense but from a net profit standpoint does it hold up?
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Could you offer a 16oz max latte and then a 20oz for brews or would people who know you have the 20oz cup want a 20oz latte?
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Permalink Reply by Greg Hill on
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our hot drinks are available 8, 12, and 16(to go only). our cold drinks are in 16 and 24(to go only). fortunately our 24 oz cup melts under heat, so that rules out the off-menu ordering of 24 oz lattes.
Chris said:
Could you offer a 16oz max latte and then a 20oz for brews or would people who know you have the 20oz cup want a 20oz latte?
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Thanks! I was going to offer something similar but just 12 and 16 on hot and then 16 and 20 or 24 on the cold stuff. Are your Capps 12oz?
Greg Hill said:
our hot drinks are available 8, 12, and 16(to go only). our cold drinks are in 16 and 24(to go only). fortunately our 24 oz cup melts under heat, so that rules out the off-menu ordering of 24 oz lattes.
Chris said:
Could you offer a 16oz max latte and then a 20oz for brews or would people who know you have the 20oz cup want a 20oz latte?
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Permalink Reply by Jonathan Aldrich on
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I work at a shop that offers 12/16 coffee, chai, hot chocolate, iced coffee and iced tea.
Everything that has espresso in it is one size. That means 12 oz. lattes, 9 or 10 oz. americanos in 12 oz. cups, 6 oz. double caps, 3 oz. machs and straight shots. No exceptions, no allowances(though we're more than happy to make something a little short) If someone brings in a bigger size of their own to go cup, we use the same amount of milk we would have anyway. If someone wants a 16 oz. latte, sorry, we only do one size because that's what we feel tastes best. Maybe one person a week has a problem with this, and they usually end up going with the 12 oz. anyhow.
It's your menu, do what you will with it and be firm about it and you won't lose customers just because you won't give them a little more milk.
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Permalink Reply by Margie Parrillo on
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This is a great question. When we opened our shop, we decided to definitely use 2 shots per drink, and that we would only offer two sizes: 12 and 16 with those two espresso shots. When people ask (and they do) we then get the opportunity to explain and nicely educate about espresso. I'll say something like: "When we went to Italy, they only serve you in a 8-10 ounce cup, we want our espresso to be as authentically Italian as possible. We don't want the milk to overpower the taste of the espresso." Most people are so thankful you took time to explain. If they want a 20 oz (we do sell 20 oz drip coffee) we encourage them to get a triple or quad of espresso with it. It seems to work. Enjoy!
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We do offer 20 oz drip...but say that our latte/capps max is 16 oz and explain why. If they say Medium, they get 16 oz if they ask for large latte, they get 16 oz. People seem to appreciate explanation and education as long as we're not condescending.
Chris said:Could you offer a 16oz max latte and then a 20oz for brews or would people who know you have the 20oz cup want a 20oz latte?
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Permalink Reply by Benjamin on
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At my shop we only offer 8 and 16 oz to-go cups. We generally put a single shot in the 8oz cup and a double in the 16oz. This ensures the same proportion of espresso to milk in every drink, no matter the size. Until about a year ago we offered 12 and 20 oz options, and hardly any of our customers griped for long when we changed it.
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Permalink Reply by Mike McGinness on
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Whatever you decide for drip coffee, espresso based beverages hot or iced please please do not offer 12 or 16oz cappuccinos. Offer a 12 or 16oz latte fine, but not an Americanized oversized cappuccino.
Chris said:
I was thinking of offering a 12 and 16 for brewed coffee. A 16 for lattes and a 12 or 16 for cappuccinos
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Permalink Reply by Tommy on
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I think maxing out at 16 oz is a good idea. One method I'm using is: 8oz 12oz and 16oz for to-go, and for in-house cup, a 12-oz mug. This way, your inventory control/operation is easier to manage, you are able to keep low inventory overhead & easy to monitor cup-status and re-order when you're running low on cups. Do your best to serve high quality drinks..every now and then you will get customers ask for a larger size cup..but if you strive to serve high quality drinks..regardless of the sizes of the cup..people will buy them.....that is what's important.. Best wishes, and success to you..and your endeavor!!happy new year!!!
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Yeah the inventory piece definitely is another good reason to max at 16.
I was probably not going to even offer an 8oz.
What size does everyone use for macchiattos and con pannas?
Tommy said:I think maxing out at 16 oz is a good idea. 20 oz is simply too much, and it will effect your operations via efficiency flow (too many cups..), For example what I do is 8oz 12oz and 16oz for to-gom, in-house cup (I utilize a 12-oz mug option). This way, your inventory control/operation will run smoothly, and by having a managable cup size selections, you are able to keep low inventory overhead & easy to monitor for re-ordering too..As long as you serve high quality drinks..that is what's important.. happy new year!!!
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