Five possible risks in the coffee industry
KNOW YOUR RISKS
You can only prepare for risks if you know what they are. Take time to think about the potential risks you may encounter in the course of your business. Some risks don't even occur to us. So don't forget your employees, family and friends. Talking to your employees and customers can give you important feedback.
Create a crisis plan that youcan refer toduring a crisis. This will give you a head start on others who are just beginning to deal with a crisis situation.
DON'T TAKE INSURANCE LIGHTLY
When the word insurance is uttered, many people just imagine a bunch of wasted money with no benefit. But don't take it lightly. Because if something goes wrong, it can be many times more expensive than one insurance policy. It is advisable to have a personal insurance adjuster to suggest and recommend what to do and how to do it.
Don't be afraid to ask for help or ask about something you don't know.
5 POSSIBLE RISKS YOU MAY FACE
1. LACK OF STAFF
Are you still having employees quit and you don't know who to hire? Before you start looking for faults in others, try looking at yourself first. Are you too demanding? Is there a good atmosphere in your café? If you don't create good working conditions for your employees, then it's understandable that they don't want to do that job.
Don't just look for qualified employees. Above all, look for those who are eager to learn something new. After all, most things can be learned on the fly. If you're short staffed, pare your requirements down to the most basic. You may be pleasantly surprised at where diligence and ambition will take some people.
2. TERMINATION OF LEASE
This is a situation that no one who is running a nice business at any given time wants to experience. Your lease agreement needs to be clear about when the contract runs until. However, if you don't pay your rent, for example, the landlord can terminate your lease early. Maintain a good relationship with the landlord. You never know when they will come in handy. Feel free to invite him or her in for coffee or dessert on the house occasionally.
3. A NEW COMPETITOR IN THE MARKET
Competition is a thing you simply have to reckon with. However, you don't have to view your competition as a necessary evil. Try to see it as a means to take you a step further. Learn from the mistakes others have made before you.
Try playing the customer of your competitors and go to their café. Sit back, order a coffee and explore. How is your competition better than you? Where does it fall short? Write down all these insights and try to be better.
Check out their website and social media. Get inspiration from them and stay one step ahead. Check outour competitor analysisarticle , after which you'll know exactly where you stand among your competitors.
4. THE ECONOMIC CRISIS
When the economic crisis hits, everyone feels it. You couldsay that thecoffee industry is the first to get hit. People will start making coffee at home just to save money on their favourite flat white.
In a crisis, of course, it's all about the money. You still need to pay rent, energy, pay staff and order from suppliers. The important thingis to build up financial reserves. Grit your teeth, hang in there and don't give up.
In the inevitable case, consider laying off some redundant staff. Expect to have tostand behind the bar yourself. Trim your expenses to a minimum. For example, do you have a wife at home who bakes delicious cakes or pies? Put her to work and save money on orders at the cake shop. Every penny counts.
5. CUSTOMER DISINTEREST
Are you not getting enough customers and not getting the turnover you would like? There could be a number of reasons why this is the case. One possible answer is that they just don't know about you. Managing and improving your communications is an ongoing process that you must constantly test. It's important to constantly look for new and better solutions and evaluate what worked and where you can improve.
This will create an environment of trust for everyone involved and ensure that your café remains a popular place for people to work and visit for years to come.
There are two different ways to communicate with your customers and encourage them to visit your café.
PERSONAL CONTACT
When a customer visits your café, it's up to you how they feel and what the atmosphere is like. Be smiling, friendly and provide the service you would expect.
SOCIAL NETWORKS
Answer honestly. How are your Facebook and Instagram? Are you creating interesting and meaningful content? Are you gaining new customers through your content? Remember, you need to pay attention to social media. Entice your customers to want to come to you to taste your irresistible cappuccino and banana bread that is famous all over Instagram.
BELIEVE IN YOURSELF, DON'T BE AFRAID OF CHANGE, CREATE
Running a profitable business is never easy, but managing costs, staff and risks properly will definitely make it easier. The moment you sort out these niggling issues, you can finally focus on the things you really care about - whether that's great coffee, changing the way people think about their coffee or running a socially and environmentally sustainable café.