Attention Seekers
Marketing For Retail Success
By Kate LaPoint

Mellelo Coffee Roasters rewards readers - and builds loyalty

An experienced marketer once said: "When times are tough and you see competitors making cutbacks in their marketing, you need to allot even more resources to your marketing--that is how you get ahead in any business." Agreed.
   But how can an independent coffeehouse owner justify spending time and money on marketing when the prospect of not making payroll looms in the back of his or her mind? As the marketing mentor would point out, this is precisely when a simple, low-cost promotion is worth its weight in profit.
   A unique concept that is well-planned and well-timed can be more effective in promoting one's business than traditional and expensive advertising. What's more, it can be fun for you, your staff and your customers. Any which way the compass points, fellow retailers are marketing with insight and taking ideas for ingenious promotions straight to the bank.

Signage is an important first step in promotion.

As Luck Would Have It
Bob Bernstein is the owner of Bongo Productions, a Nashville, Tenn.-based coffee roaster/retailer with four locations under the Bongo Java name. While one spot may be a "beatnik coffeehouse" and another "more upscale," Bernstein says that Bongo Java appeals to "all of Nashville." He describes the shops' regulars as "suits, students and slackers of all colors, shapes and sizes."
   Bongo Java made history in 1996 when one of its employees found the likeness of the late Mother Teresa in a cinnamon roll. Though not an intended promotion, Bernstein says the now-famous "Nun Buns" have attracted coverage in local papers, on the radio and even television, where viewers of CNN and "Late Night with David Letterman" were introduced to the phenomenon.
   Although the hype over "Nun Buns" has died down a bit, Bongo Java creates a buzz with events rather than traditional advertising. The company's location in Music City helps its stores attract many celebrities. Country singer and political activist Steve Earle is among the regulars. Earle created a theater company, which staged its first and several subsequent productions at the Bongo Java After Hours Theater.
   Bongo Java's most recent and highly successful promotion was called "Start The Year Off Fresh." As Bernstein explains it, "Anyone who had old coffee lying around, or who received 'bad' coffee for the holidays, could exchange it for our fresh-roasted beans." Bernstein points out that this event brought in newcomers who may have never tried the coffee, but read about the exchange in a local paper. "All our promotions are good--some because they directly bring in new business and some because they attract publicity that can create new business," he insists. "We still get people making the pilgrimage to see the [original] Nun Bun."
   What advice does Bernstein share with fellow coffee mavens? "Only do promotions that fit your image, and don't judge the success of a promotion on the immediate impact it has on your bottom line," he says. "Ask yourself: Did customers like it? Are employees still talking about it? If you answer 'yes' to either one, then it was a successful promotion."
   Across the country, the quirky owner of Seattle's Capitol Hill establishment Coffee Messiah, known only as Opus, stumbled upon his most successful promotion. It was Labor Day, and the popular annual weekend-long music festival, Bumbershoot, was underway. "Usually everyone heading to Bumbershoot stops in for coffee on the way," explains Opus. "But I noticed a lot of people waiting at the bus stop near our shop with to-go cups from a nearby well-known specialty coffee corporation, so I decided to go pass out some stickers. [Coffee Messiah's infamous stickers feature a 'Jesus-face' logo as well as the café's address.] Well, I was having a great time with the crowd of concertgoers and tourists, and it wasn't long before they started using their stickers. They put them on the bus pole, their coffee cups, back packs--and the front window of the aforementioned competitor."
   Opus recalls what happened next: "Two cops and a paddy wagon pulled into the competitor's parking lot, got coffee and headed to Coffee Messiah. They passed by me, went inside and asked for the owner where they were directed back to me. They said someone matching my description was caught putting Coffee Messiah stickers on the competitor's window. Then they arrested me."
   Opus spent a day in jail for destruction of property. How did this misfortune turn into his company's most successful promotion? Upon his release, Opus called all the local papers. Stories about his travails were printed--one even made the front page of a local daily. From this exposure sprouted radio interviews and new faces who supported what Opus calls "the local independent coffee shop that fought back against corporate coffee tyranny." Devotees of Coffee Messiah include commuters (everyone from Microsoft employees to waiters, says Opus), tourists and students. The shop boasts an even more varied clientele in the evenings, depending upon what type of live music the café hosts, which can run from experimental and jazz to blues and punk.
   Though Opus may not recommend such radical promotions to fellow coffeehouse owners, he shares Bernstein's philosophy in his counsel: "Follow your heart and don't be afraid to express your personality in your business and in your promotions. As long as you believe in something strongly, the rest will follow."

Meetups create an instant clientele

Community Spirit
In 1992, Sal Mellelo opened a street-corner espresso cart in the southern-Oregon community of Medford. Today, his Mellelo Coffee Roasters employs 30 people at four retail locations and also enjoys a booming wholesale business. Each location has its own unique atmosphere and clientele. The downtown coffee bar is in the traditional Italian style with quick service and a stand-up bar that is popular with the area's businesspeople and commuters, while the roastery offers leather couches and a fireplace to those with a bit more time to linger.
   Involvement in the community is Mellelo's forte, and the basis of the company's best promotions. Recently, in cooperation with local school districts and Medford's new city library building (home to the newest retail location), Mellelo Coffee Roasters is offering incentive rewards to children for every five books they read.
   The "reward" is a free beverage of choice from any Mellelo location. Yes, that includes hot chocolate and Italian sodas--Mellelo insists he's not trying to caffeinate the city's youth. "The idea was based on two things," Mellelo reveals. "First, we feel incredibly blessed to have our business and our customers, so we feel good about giving back. Second, and perhaps more importantly, we want to give children the opportunity to walk into one of our establishments and 'purchase' a beverage based on their own effort rather than their parents' budget."
   Mellelo believes that instilling a sense of pride and accomplishment in children is one of the greatest investments the company can make. Promoting the business is almost an afterthought. Mellelo, a true entrepreneur, will agree however that no effective bit of marketing comes about as an afterthought. "This is definitely our most successful promotion to date, based on the enthusiastic response we've received from the community," he says. "That's why my advice to other retailers is to do a promotion that benefits someone or something in your community. Not only will you feel great about it, but it will help you stay grounded in your community." After all, the surrounding community is your most accurate barometer for gauging the success of a promotion.
   Basing the roots of his promotions in the community is also where Mark Klebeck, co-owner of Seattle's Top Pot Doughnuts and Zeitgeist Coffee Roasters, has seen the biggest pay-off. Listen to one of Seattle's public radio stations such as KEXP (a station that plays an eclectic variety of music including alternative, blues, reggae, country, world music, rockabilly, hip-hop, and experimental), and you'll get an earful about Klebeck's venture. "Listeners support KEXP, and so does Top Pot Doughnuts, serving fresh coffee and hand-forged doughnuts every day," announces the radio. How can a non-profit medium such as KEXP provide an unbeatable avenue for coffee shop promotion? In this example, underwriting works because the station's listeners are loyal. And because Top Pot chooses to support a non-commercial radio station, its message is not drowned out by countless other advertisements. "It has been a great avenue for us and worth every penny," Klebeck says. "We couldn't get nearly the exposure from some of the bigger stations."
   Klebeck remarks that getting Top Pot's name out to a demographic that was larger than the company's original target has been beneficial. "The radio station approached us initially," he says. "Some staff members were big fans of our hand-forged doughnuts and thought other people should know about them. Because the station is something I believe in, it didn't take much convincing to get my support."
   Donating product has proved another pot of gold. "If you have a great product, all you need to do is get it out there," advises Klebeck. "We deliver doughnuts to the radio station for staff and volunteers during pledge drives and provide some type of signage, even if it's a small flyer with our name on it so people associate the great product with where they can go to get more." Klebeck's words of wisdom? "Always assume that you are the 'little guy' and that your goal is to make your name known. Be creative and consistent with your marketing efforts."
   A strong connection with her neighbors drew Mary Buhr into the specialty coffee business. "Through ongoing conversations, I saw there was a real demand for a small neighborhood gathering spot--a place for friends or co-workers to meet for coffee and conversation," she recalls. Customers of Buhr's Coffee Eclectic in Minneapolis, Minn. include nearby residents, some families, students, local businesspeople, and commuters. Her shop location, near a bus stop on the University of Minnesota route, provides her with plenty of foot traffic.
   Open only since December 2003, Coffee Eclectic is finding promotional success as a "Meetup Venue Partner." Meetups are theme-based, face-to-face get-togethers that take place in more than 660 cafés, restaurants, bookstores, and other establishments around the world. Buhr became involved after one of her managers had joined a couple of Meetups and learned that the organizing company, Meetup.com, was looking for venues in Minneapolis. She is finding the partnership to be helpful in attracting new clients from outside the immediate neighborhood. "Meetup makes us known to thousands of its members in the Twin Cities area," explains Buhr. "Not only is the Coffee Eclectic name now in front of a much wider audience, but the meetings are increasing customer traffic during off hours."
   Buhr also receives indirect promotion through Meetup.com and the Specialty Coffee Association of America (SCAA). The two organizations have recently partnered to launch International Coffee Lovers Meetup Day, designed to bring coffee connoisseurs together and to drive new business to establishments like Coffee Eclectic. MVPs who are SCAA members pay Meetup.com a flat fee of $59 per month to be listed. "Those who sign up with us do so because they wish to gain the business of some of the hundreds of different groups looking for a great place to Meetup early in the week," explains Meetup.com's Bill Bicket. Meetups are generally scheduled Monday through Thursday at 7 or 8 p.m. To this end, Buhr believes that word-of-mouth has been the key to building her loyal customer base. She says that a coffee shop must "strive to ensure that every customer receives a quality product, excellent customer service and the respect they deserve."

Promotional pieces urge customers to get involved.

Let's Get Cultural
D.S. Watkins Gallery & Coffeehouse occupies a quaint, historic building in old downtown Kennewick, Wash. Deborah Watkins and her husband, David, are the company's owners and only employees. Complete with a cozy fireplace, interesting rotating art and a warm brick interior, D.S. Watkins has become a favorite meeting place for friends, families, students, businesspeople, book clubs and other special interest groups, as well as art enthusiasts. Watkins says her typical patrons include "a vast and interesting variety of people starved for a little uniqueness and relaxation."
   On the first Thursday of every month, several galleries in historic downtown Kennewick, including D.S. Watkins, open their doors from 6 to 9 p.m. for what is called "First Thursday Art Walk." Every month, a different local artist is featured and D.S. Watkins serves coffee and tea at no charge. "This is our way of bringing in new people to view the art and to sample our unique press pot coffees and teas," explains Watkins. She says the art is a big draw every day, since each artist draws a following that includes relatives, co-workers, friends, and so on.
   The location is a bit out of the way. So how do Watkins and the other galleries promote the event? "We put together a co-op advertising campaign with our local newspaper using all our business names and logos, and our featured artists. With the addition of a flyer/map in each location, and word-of-mouth, the First Thursday Art Walk has been a hit," Watkins says. "We have reached a new clientele that otherwise may not have been interested in traveling to our location or even (believe it or not) in coffee and tea. These people have returned with friends, delighted to show off their new discovery." Watkins believes no coffee retailer should have to go it alone. "Coordinating with surrounding businesses offers the customer, and you, a bigger bang for the buck," she insists.
   Speaking of art, The Canvas is a gallery and café in San Francisco, Calif. Although the concept of art within a café is not new to the area, a space that is a full-time gallery, café and event space is, says The Canvas art director Jenny Hay. She says that in addition to the shop's art exhibitions, its weekly Open Mic Night has been a rousing success. "An outside promoter [who is paid a percentage of bar sales in return] organizes and emcees the event. Musicians, singers, poets, and performers arrive every Wednesday evening to sign up for seven-minute slots," she explains. "The performances begin at 8 p.m. and go until midnight. There is one featured act a week, and if we find someone to be a 'good mic,' we will ask him or her back to headline the next week." This enables The Canvas to accommodate many acts each week--acts who eat dinner and/or have coffee or drinks while they wait to perform. Hay says the event is one of only a few in the city and that word-of-mouth keeps it well-attended. "Collecting e-mail addresses at registration has also provided an easy way to promote upcoming events," she adds. "We are always packed on Open Mic Night."
   The Canvas also offers its customers and performers access to its wireless Internet service. "Many people now conduct their business from The Canvas," Hay says. "The cost to us is nominal and yet it attracts many new patrons and has created a loyal customer base." Because the café is in a prime location near the entrance to Golden Gate Park, walk-in traffic consisting of tourists and people living and working in the area makes up the café's daytime clientele. But the events at night, says Hay, draw crowds from all over the Bay Area.
   Using its Open Mic Night as a model, The Canvas is planning a film night called "Open Shorts." Hay explains: "The night is comprised of eight-minute films produced and directed by local filmmakers. People can bring in the films that night and sign up to have them shown. For each film, we figure there are typically three to seven additional customers." The event will happen two Tuesdays each month, which Hay says is an otherwise "off" time for The Canvas. Knowing which nights are slow and which are busy is key to planning events.
   What has the staff of The Canvas learned from hosting these types of events? "Use the community and allow it to use you," Hay suggests.
   Caffé Trieste, also in San Francisco, Calif. has been serving espresso for nearly half a century. The historic location in North Beach was the first espresso coffee house established on the West Coast. The location has served as a movie set for many films and the walls are covered with framed photographs of celebrities who have visited Caffé Trieste over the years.
   Founder Giovanni Giotta brought his family to America in the 1950s, where they found that "hard work and prudent decisions spelled success," so the story goes. Longing for the coffee bars of Trieste, Italy, Giotta decided to bring the experience to America.
   "Since the beginning, Caffé Trieste has provided a family-type atmosphere," explains John Van Kouwenberg, Caffé Trieste's controller. "People feel at home in our cafés. Our retail locations welcome all ages and for many we're like a living room away from home."
   Van Kouwenberg says that "non-traditional advertising is what we have found works best." The Giotta family shares many passions, among them motorcycles. Giotta's son Fabio, now president of Caffé Trieste, was introduced to motorcycling in 1969 when his brother-in-law, Nicola, arrived from Italy with his Moto Morini racing bike. Nicola competed professionally for many years. Fabio, likewise, developed a passion for motorcycles that came to fruition in 2001 when racing talent Hamid Otsmane, Fabio, and his sister Sonia established Caffé Trieste Racing. Van Kouwenberg says the racing has generated coffee sales in many ways. "It has put our name out there. We sell a lot of Caffé Trieste Racing t-shirts, which means our name gets a lot of exposure. Any way that you can get your name to be seen in public is good."

Class Is In Session
Sue and George Krug are the husband-and-wife team behind Madison, Wisc.-based, Ancora Coffee Roasters. With one roastery and six thriving retail locations, the Krugs have found promotions based around National Specialty Coffee Week to be popular with their patrons, whom Sue Krug describes as "professional, educated, well-traveled, and curious, yet looking for comfort and familiarity in their daily routines."
   "Educating the consumer was our number-one goal," says Krug. "We planned fun events, such as a cupping hosted by our master roaster. Then each day of the week, we would introduce a Mystery Coffee to sample. Those who guessed the origin correctly received a free pound of whole-bean coffee."
   Ancora staff members designed table tents for each location featuring coffee facts and fun trivia. Sue says the promotion brought attention to their coffee as more than just a morning wake-up by inviting coffee lovers to actively participate in specialty coffee.
   The event was so successful that it spawned a program that features a specific coffee for a number of weeks at a time. "These coffees are generally highly sought-after and exceptional in the cup," says Krug. Ancora creates flyers and point-of-sale (P.O.S.) materials to educate its retail and wholesale customers about the featured coffees--information that is supplied by Ancora's master roaster and/or importers.
   Krug says that in addition to regular promotions, the company's "signature" products (its house coffee Ancora d'Oro, and its Ancora Espresso) have been helpful. "We chose to create blends that are distinctive and interesting, but not so unusual that many consumers couldn't enjoy them," Krug explains. "It was important to do this so our company would be recognized and known as one of the only sources for these coffees."
   Krug offers this additional guidance: "Create interest in your business by purchasing and preparing only the finest quality coffees, consistently. Actively engage your customers and they'll spread the word about how great your business and your products are!"

Freebies
Bistro at Postcard from Paris is a coffee shop located within a European interiors market and design firm in Greenville, S.C.'s West End district. When business partners Meredith Kinsey and Linda McDougald expanded their Postcard from Paris operation from 5000 to 15,000 square feet, they believed that the addition of a European bistro would complete their vision. "Our objective has always been to stimulate the senses of our guests," Kinsey says, "from seeing beautiful interiors to tasting outstanding coffees and cuisine to feeling as though they have been transported to another place." Because of its unique location, the bistro caters mainly to shoppers from the furniture store.
   But that's not all. Located across from the Governor's School, the shop also hosts many students on a daily basis. Moe Draz, barista and assistant manager, says the location's most successful promotion has been its coupons for a free drink of choice. Draz explains that the coupons were distributed as inserts in a local weekly paper and were also passed out to students at a neighboring school. "The inserts were sent to businesses and residences in the surrounding area and were extremely well received," Draz says. "The word 'free' is very enticing. The coupons have also provided our business with a tremendous amount of exposure and more repeat business." Coupons such as these encourage people to try a shop's products with no risk involved. If your product is outstanding, the customers will return again and again.
   Draz notes the importance of tracking marketing efforts: "My staff was well informed and was prepared to help by asking customers where they received the coupons," he says. "This enabled us to track the success of our medium, and also helped us collect names and addresses to add to our mailing list."
   Kinsey and McDougald believe strongly in the power of self-promotion. "Marketing is crucial," remarks Kinsey. "When dollars are tight, many people choose to reduce their marketing efforts. We do just the opposite, recognizing that ongoing, consistent marketing is vital in remaining top-of-mind in your community." McDougald agrees, "The good news is you can leverage marketing techniques to educate customers about your business, persuade them to buy your products and enhance their satisfaction without breaking the bank." The success of any coffee shop, she adds, "takes listening to what your customers want and delivering your product with the highest level of customer service possible."
   Whether a fabulous marketing opportunity falls in your lap, comes from your community or leaps forth from your creative imagination, be sure to take advantage of it. By systematically planning and energetically executing your promotional brainstorm, you can assure the success of your specialty coffee business for years to come.