Takeout
The Profits in Portability
By Nick Obourn

"Would you like that for here or to go?" I uttered that phrase countless times during my stints at coffeehouses and cafés, and every time it was received with a variety of responses. There was the contemplative customer who after being asked, would mentally shuffle through the day's calendar, trying to bump things back or play hopscotch with chores in order to linger in the coffeehouse. One could actually read the schedule reconfiguration happening as their eyes rolled back and they scratched their head. Some customers would say, "For here," then revert to, "To go," then back once again to, "For here." Some would merely look to their kids who pulled on their shirtsleeve with the threat of an oncoming tantrum. The next words would be, "To go!" Other customers also knew immediately, and barely had time to grab their latte before heading for the door. Through my experience I learned that the faces of the to-go business are varied and fleeting, and that a well-run coffeehouse is one that tends to the to-go crowd just the same as the sit-and-sip crowd.
   In recent years, specialty coffee's to-go industry has blossomed as the general public's awareness of high-quality coffee has garnered sophistication. Culture is changing at a breakneck pace, and as members of this booming, technology-based web of connectedness, we have a lot less time to sit and chew the fat. "For something to become an everyday staple, it has to be something that can be enjoyed on the go," says Walter Hasselbring, category manager for Cicero, Ill.-based LBP Manufacturing. "Part of what makes coffee such a great part of that is two things: It's looked at by some as something to keep them going and it's looked at by some as a relaxing moment." This dichotomy has led coffeehouses to be viewed as a place for unwinding, and as the up-and-coming stop-and-go for higher quality products.
   The ramifications of our speedy lifestyle are beginning to peek through; some are detrimental, some beneficial. But it is a reality, whether the cup is half empty or half full, and today's coffeehouse owner is the captain of industry who fuels this expedited workweek. It's in their best interest to cater to this to-go crowd.
   "Part of the reason that we in the United States are perceived globally as a fast-paced nation is that we, as consumers, are marketed to in the vein of how great it is to 'have it now,'" says Aaron Duckworth, owner of Espresso dell'Anatra, a coffeehouse in Kansas City, Mo. "Think about it: A two-liter bottle of Pepsi is often 99 cents. A smaller, chilled one-liter bottle is usually $1.29. Granted, refrigeration is expensive, but not that expensive."
   The idea of "to-go" is heavily rooted in the American tradition of the fast food industry and its push to streamline food service. With the advent of drive-thrus, a concept that has been handily adopted by the specialty coffee industry, customers were spared from even leaving their automobiles-another American standard. Claus Sadlier, president of Insulair Inc., based in Vernalis, Calif., points out that the majority of the profit in fast food comes from the drive-thru lane. Specialty coffee drive-thrus are the direct descendents of their fast food ancestors and some are profiting hand over fist from the foundation built by the fast-food drive-thru. But coffeehouses are tugging at fast food's coattails as well and are benefiting from the to-go mentality. "Specialty coffee has been pretty much in tune with the to-go market most of the time," says Jay Sorensen, president of Portland, Ore.-based Java Jacket. Coffeehouses even have a strong advantage over the McDonalds, Burger Kings and specialty coffee drive-thrus of the world in that they are a place that encourages people to sit and relax, or they can impress their "feel" upon to-go customers with strong branding and proper training. In a fast food restaurant, you are literally a number. In a coffeehouse, you are a person with preferences and tastes. "We know our customers inside and out. We know who has meetings on Tuesdays at 7:15 a.m., or who has to get the kids dropped off at school at 8:00 a.m. sharp and habitually runs late. For these customers, to-go items are a natural fit," says Duckworth.
   The fast-food industry is moving ever further in the automated direction. Talk by McDonalds of phasing out what remains of the personal nature of the drive-thru in favor of creating call centers that take many orders from many locations at once can only help the specialty coffeehouse. You may not offer Big Macs and oversized sodas, but the coffeehouse is one of the few remaining places where takeout can still convey sincere service. Every coffeehouse owner must explore this fine line between assembly-line espresso beverages and the appreciative takeout business. Coffeehouse owners don't have to develop multiple personalities to do this because the root of the coffeehouse business is based on individuality. Personal touches can make all the difference for the on-the-run customer. "We do latte art every time, on every drink possible, just so that our customers know that we took an extra second preparing their drink," says Duckworth. "One thing that I have seen other cafés do is make customers get their own lids so that they can admire their latte art on the way to the condiment bar."
   Chuck Beek, owner of Monorail Espresso in Seattle, is one of the foremost authorities on to-go culture in the U.S. Beek opened the first espresso cart in the country on December 1, 1981, he recalls vividly. It began directly under the city's monorail, then bounced around town as a cart before finally opening in a permanent location in 1995. The permanent location is still a very modest endeavor, and only offers to-go items. "Everything we sell is takeout," says Beek. "We don't have an indoor space. We are taking up one huge picture window and more space behind the window. We have a bathroom and storage and six sinks and it's all in approximately 100 square feet." He reinforces the importance of the personal touch for in-and-out customers. "Most of our employees know our customers and know their drinks and we get them going before they even get all the way up to the bar," says Beek. "We have a punch-card system, and people purchase punch cards and they can punch their own, grab their coffee and they are out of there."

What to Offer
Each year, the National Coffee Association releases its National Coffee Drinking Trends survey to inform the coffee industry about where it's headed on a larger scale. They also assemble the Out-of-Home Coffee Consumption report, a supplement to the larger study. This year's findings are a beacon for the takeout industry. In 2003, 78 percent of consumers drank coffee at home and 13 percent did so at work. Of that 13 percent, 36 percent brought their coffee in to work from outside and 64 percent obtained the coffee at work. A year later, the numbers demarcate a very different picture. In 2004, 19 percent of consumers drank coffee at work. Fifty-seven percent brought that coffee in from an outside source, up from 36 percent the previous year. And 43 percent obtained their coffee from the workplace, down from 64 percent in 2003. These figures show that not only are more people drinking coffee at work but they are getting it more and more frequently from an outside source, i.e. your coffeehouse. To be prepared for this onslaught of working America, there are many options available to coffeehouse owners to appease rushed takeout customers.
   "Specialty coffee is really a customer service business," says Sorensen. "You're not going to get by serving lower grade coffee and not having a barista that's trained. So it starts off by giving them a good drink and then it goes beyond that. You have to take the extra step to make sure that you do everything that you can to satisfy your customers' needs." Part of this is making sure that your takeout customers have everything at their disposal, and it requires a little bit of premonition. Coffeehouse owners should be prepared for what happens after the customer walks out the door. In this capacity, the Java Jacket is one of the simplest yet most effective tools for the coffeehouse retailer. As the first cup sleeve on the market, it's a small recyclable cardboard ring that hugs the to-go cup, protecting the hands of customers and allowing for a better grip while dashing to a meeting or soccer practice.
   LBP manufacturing also offers coffeehouses a variety of takeout-specific items, some of which are geared toward large groups. "We have the Beverage on the Move. It's a bulk beverage carrier that insulates 96-ounces of hot or cold beverages [for] up to three hours," says Hasselbring. The inner bag of the Beverage on the Move automatically inflates when the box is assembled, making it easier for operators to fill. These containers are the perfect addition to an office ready for coffee in the morning. Many coffeehouses ask that customers call ahead at least 15 minutes for an order like Beverage on the Move. "Many others will take the request and say it's going to be about fifteen minutes and often offer that person a complimentary cup of coffee while they wait," says Hasselbring. It's also the ideal product to ally with baked goods. "Beverage on the Move allows coffee shops to introduce new business they otherwise wouldn't have, specifically when it is bundled with bagels or pastries. It's not taking away eight customers for that day, it's adding seven new ones," says Hasselbring. "It becomes kind of a natural. If you're taking 10 cups of coffee back to the office for the Monday morning office meeting, it becomes natural that you take 10 or 12 bakery items along with it," says Sorensen. LBP also offers coffeehouse purveyors a larger catering-size Beverage on the Move, as well as the Coffee Clutch, a hot cup sleeve with heat-activated glue that adheres to the cup.
   The average takeout customer has two arms, possibly a bag of some sort and maybe a car waiting in the wing. Coffeehouse owners should view this as opportunity knocking at the cash register drawer. Most customers will take their coffee or a few coffees for some office buddies, a baked good and maybe lunch for later. But beyond these obvious takeout items, there is also infinite possibility to sell customers products with a heftier price tag. Takeout can be seen as anything that the customer can walk out with, and your customers are more likely to come back if they know you offer a large array of items. Grinders, brewers, containers for holding coffee and even home espresso machines are game for the takeout customer base.
   "We sell both blade and burr grinders, but not espresso machines. In addition to French presses and syrups, we focus on the nontraditional brewers that you can't just go to Target or a department store and buy, such as vacuum brewers, Chemex brewers, Flip-Drip pots and moka pots," says Duckworth of his coffeehouses takeout options. "Plus, they're all non-electric, unlike most espresso machines, which means less headaches for the retailer."
   If one examines what the average coffeehouse customer spends, it immediately makes sense to offer extra items. "Most coffee shops that I have seen run an average ticket of around $4," says Duckworth. "Adding in impulse items like biscotti and small bags of chocolate covered espresso beans is an easy [way] for your staff to increase your average ticket."
   Many retailers sell roasted beans, allowing their customers to expand on the specialty coffee experience, bringing it from the coffeehouse into the home. Couple a pound of beans with a grinder and even a high-quality brewer, and the store's profit margin just jumped.
   The Tin Woodsman Pewter Company, based in Eugene, Ore., is celebrating its 20th anniversary this year. As it rounds the vicennial mark, the company has found new vitality in the coffeehouse industry. "Coffeehouses are one of the biggest selling segments of our business," says Jodi Sommers, marketing director for the company. "It's been a great new market for us." The Tin Woodsman's location in the Pacific Northwest is already the perfect introduction to the specialty coffee industry, and predictably, one of their first products was coffee oriented. "We've been making pewter coffee scoops for 20 years. They were one of our first products, and they've always been one of our top sellers," says Sommers. But the company is branching out now and finding that specialty coffeehouses are receptive to their expansion. Deborah and Jim Chapman, the founders of the company and designers of all the company's products, have found that the new pewter coffee canisters are becoming a popular item for the takeout crowd. "The canisters are basically a remake of an old design. We introduced them in July 2004, and they are quickly becoming one of our most popular products." The canisters also make the perfect accompaniment to a pound of roasted beans. Each canister is made of either porcelain or stainless steel with a lid and a scoop made of pewter. In perhaps the perfect summation of why the to-go industry is booming, Sommers explains her life: "I always get things to go because I am a busy [woman]. I work, and I don't like calling myself a soccer mom, but during the spring season I am a soccer mom. I'm just one of those modern day people who's got tons of things going on."

The Fast Lane
A bit ironically, one of the most in-touch with the takeout industry, Beek of Monorail Espresso, says he lives his life contrary to the on-the-run mentality. But it can easily be argued that because of this he understands it even better. "I think the to-go coffee craze that I had a part in starting took off because it adapted well to our crazed society. And I do not live in that society. I actually run my personal life counter to that." Beek remarks that he prefers a pot of tea with scenic backdrops to the hustle and bustle of the to-go world. But there are also signs that teahouses are not far behind in to-go offerings.
   Teahouses, increasing in numbers, are starting to see the to-go light. Although it is a harder transition because tea lacks coffee's reputation for creating velocity in the working world, there are many possibilities for that industry. "The specialty teahouses are starting to come around," says Sorensen. "When tea first started coming to the forefront, [tea sellers] were adamant about not having a to-go side. They wanted to serve it in fine china."
   There are simple things to always be aware of when boosting your to-go business. Keep the takeout area clean and well stocked. Make sure your customers have all the drink stirrers and sugar packets they need. The to-go station is often one of the sloppiest spots in a coffeehouse. Coffee spills happen at almost the same rate as lane changes on the Brooklyn Queens Expressway, so it's important to keep it wiped down. There are also a series of options on the market when it comes to lids. Be sure to investigate and offer your customer the best sealing lid with the simplest operation.
   As your customers head for the door on their way to business meetings and movies, it's important to remember your to-go customers are integral to your business. Just because they don't have time to strike up some conversation doesn't mean they don't help the bottom line. Ask takeout customers if they would like anything else with their usual. The revolving takeout customer base is chance after chance to tag on add-on sales. "I believe that most coffeehouses couldn't survive on just an in-house service," says Sorensen. "You can't generate the volume. If everybody stayed in your typical 1200-square-foot coffeehouse, pretty soon there's no room."
   It's certain that with time, and given the direction of our culture, the words "to go" will become a more frequently used part of our lexicon, and it's up to the specialty coffee and tea purveyor to recognize, adjust and cater to those brief two words.