Heat up the offer

Hot drinks market warming up, firms say

AS high margins go, it’s hard to see past hot drinks. And with demand high, firms specialising in hot beverages say there are several ways licensees can tap into this potentially lucrative revenue stream.

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Justin Stockwell, director at Caffeine Ltd, said that as customers become more aware of what’s on the market, “there is a greater demand for a variety of good quality coffees, including iced coffees and flavoured coffees”.
Stockwell said that modern bean-to-cup machines “are responsible for the expansion of good quality coffee into outlets where previously it was a no go”, offering an ideal solution for some venues “as you can get close to barista quality using relatively unskilled staff”.
The demand for quality coffee was also recognised by Russell Jenkins, managing director at Thomson
“It’s all about quality of the product; with consumers’ increasing appetite for carefully sourced craft products behind the bar this is naturally extending into a need for operators to complement their drinks selection with a quality coffee and tea offering,” said Jenkins.
There is a “huge opportunity in speciality coffee”, according to Jenkins, who reckons there is scope for many on-trade operators to up their game.
“In cafés on the high street the bar is constantly being raised in terms of fresh speciality grade coffee sourced from local roasters,” he said.
“As a result consumers are becoming more discerning about the coffee they drink and will seek out operators doing it to the highest standards.”
Coffee isn’t the only hot beverage presenting a high margin opportunity.
Allan Pirret, sales director at Novus Tea, reckons there is an “untapped tea market” with potential for profit, but only if the offer is given at least the same care and attention as coffee.
“Operators need to get their offer right by serving a tea on par with the very best artisan coffee,” he said.
“It’s important to choose a market-leading, premium brand capable of delivering the quality, taste and support their customers will demand.”

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Taking tea to the next level

“The UK, which already has the highest per capita consumption of tea in the world, is seeing a huge growth in sales of premium teas.
“Licensed trade operators are in a great position to cash in on this growing demand.
“Here’s how:

• Work with a willing supplier
• Select the finest teas
• Choose a sensible menu
• Serve with style and expertise
• Promote your offering

“These steps will help you create great value and unrivalled customer satisfaction.
“Not only will your customers keep coming back for more, they’ll also tell their friends about the experience you offer; a sure-fire recipe for success.”

– Allan Pirret
sales director
Novus Tea