June / July Topic

HOT & COLD BEVERAGE TRENDS IN THE RESTAURANT INDUSTRY

Here is some information to help independent restaurant owners compete:

Hot and Cold Options:

When cold, chilled and iced versions of beverages (not including carbonated) are aggregated, Cold Beverages have a greater menu presence, with 58.1% of menu listings, but there is a net loss of 3.5 menu share points when compared to a benchmark MenuMine survey conducted in 1996. Hot Beverages, with 41.9% of menu listings, have shown a 3.5 menu point share gain.

Coffee;

Specialty coffee now accounts for over half of all coffee on the menu. Currently, 55% of all coffee menu listings are specialty coffee varieties. Regular and decaffeinated coffee, account for 31% of menu listings and chilled or iced coffee 14%. Any restaurant that does not serve a Specialty Coffee is locking itself out of a profit bonanza. At an average menu price (median) of $2.95 the market for Specialty Coffee will bear a price that is double that of Regular Coffee at $1.45. Selling Chilled or Iced Coffee is an even better idea, because there is a willingness to pay a premium price ($3.55) that is almost two and one half times more than regular hot coffee.

Coffee Type - Menu Items - Menu Share - Average Price:

Coffee, Hot (reg and decaf) 682-31%-$1.45
Coffee, Hot, Specialty 1197-55%-$2.95
Coffee, Iced/Chilled 294-14%-$3.55

Specialty Coffee:

Specialty Coffee is really any coffee other than normal-typical-regular (or decaffeinated coffee). Flavors and types abound and overlap, but there seem to be eight definable groupings of Specialty Coffee.

1. Espresso
2. Cappuccino, which is a shot of Espresso with steamed and frothed milk is very popular on menus. Cappuccino makes up one of every four specialty coffee menu listings (24%).
3. Mocha, or chocolate flavored espresso, adds up to 22% of all specialty coffee menu listings.
4. Lattes have a little bit more steamed milk and more froth and account for 19% of all listings. For those consumers preferring a more subdued espresso, the
5. Americano
6. Machiato is recommended for those who like caramel flavoring.
7. Cafe Au Lait is made more with brewed than with espresso.
8. Flavored, the most popular seem to be French Vanilla, hazelnut, Almond, Almond Mocha, Mint, Butter Pecan, Cinnamon, Mocha, Chocolate and Mint.

Coffee Share:

Cappuccino - 24%
Mocha - 22%
Latte -19%
Espresso -16%
Flavored - 8%
Americano - 4%
Machiato - 3%
Au Lait - 4%

What Chains Are Doing?

Chains have reasoned it is best to be prepared when it comes to satisfying specialty coffee tastes.

Specialty Coffee on the Menu:

Flavored Cappuccino at Tim Hortons Caffe
Machiato at Il Fornaio
Mint Condition at Caribou Coffee
Double Espresso at Panera Bread
Pumpkin Spice Coffee at Gloria Jean's
Mocha Latte at Mimi's Café
Caramel Machiato at Barnes & Noble
Steamers at Borders Books Café
Caffe Espresso at Olive Garden
Flavored...Javahh at Breugger's Bagel Bakery
Caramel Mocha at Cosi
Nescafe Cappuccino at Target
Cool Mint Mocha at Champagne Bakery
Cappuccino at Krispy Kreme
Macciato at Caribou Coffee
Cappuccino at Le Petite Café
Mocha at Pret a
Manger Espresso Coffee at Samba Room
Espresso at Landry's Seafood
Cafe de Olla at Frontera Grill
Caramel Swirl at Dunkin Donuts
Espresso at Lawry's Prime Rib
Cappuccino at Chicago Chop House
White Chocolate Mocha at Ghiradelli

Iced/Chilled Coffee:

There are now three times as many chains offering Iced/Chilled Coffee on the menu as there were when tracking began in 1996. ( Almost half (47%) of these beverages use the term Iced). Other popular terms are Mocha (15% use), Latte (10%), Cappuccino (9%), Cool (9%), Espresso (5%), Chill (5%) and Drink (5%).Iced/Chilled Coffee on the Menu:

Iced Caffe Machiato at Barnes & Noble Cafe
Caribou Coffee Cooler at Caribou Coffee
Mocha Freeze at Borders Book
Cafe Iced Cappuccino at George Webb Restaurants
Iced Coffee Toddies at Cafe Brazil
Iced Coffee Mocha at Cheesecake Factory
Frozen Latte at Corner Bakery
Coffee Coolata at Dunkin Donuts
Mint Arctic Mocha at Cosi
Vanilla Espresso Chiller at Gloria Jean's
Iced Cappuccino at Daily Grill
Iced Jumpin Java at Manhattan Bagel Co
Cool Mint Mocha at Champagne Bakery
Iced Cappuccino at Mimi's Café
Gingerbread Latte at Starbuck's
Iced Cappuccino at Tim Horton's
French Vanilla at Shari's
Thai Iced Coffee at Stir Crazy Café
Cafe Frio Mocha at Seattle's Best Coffee
Iced Coffee Concoction at Samba Room
Iced Caffe Mocha at Panera Bread
Iced Mocha at Peet's Coffee & Tea