How to Revamp Your Coffee Shop Menu to Make More Profits

Revising Your Coffee Shop Menu (To Make a Profit)

Revising Your Coffee Shop Menu

(To Make a Better Profit)

When you open your coffee shop, you do so with the hopes of making a profit. However, many coffee shop owners struggle to cover the initial costs of starting a coffee shop. 

Sluggish sales can worsen the problem of reaching your coffee shop break-even point any time soon. The excitement of starting a coffee shop can hit a wall when customers are overlooking your menu items and not finding anything that interests them.

There is no doubt that you can certainly be leaving money on the table by simply not exciting the willing customer. If you’re seeing low ticket numbers and inventory not being sold, this is when you know you have a menu problem. And as you may already know… menu problems always equal a profit problem.

So, let's talk about your coffee shop menu.

Taking a Look at Your Coffee Shop Menu

If you are concerned about your coffee shop revenue, specifically, how much money you are making – there are a few ways to focus on developing your profits through your coffee shop menu.

For example, you have a couple of ways to develop your coffee shop profit:

• Increase the number of sales
• Increase your price per ticket (receipt)

Of course, this means you will charge more beyond your costs for each item and thus, increasing your profit margin.

Your coffee menu items should be both appealing for your customers and competitively-priced to propel enough purchases for you to reach your daily sales goals and profits.

Yet, this balance is often hard to achieve for several reasons. Today, we’re going to take a quick look at a few elements that revolve around your coffee shop menu board, your profits, and how to improve them. 

Further Reading: Improve Coffee Shop Revenue Streams with Food Offerings

Using Available Data to Streamline Your Coffee Shop Menu

To make immediate improvements to your coffee shop menu, you have to start with what you know.

What’s selling at your coffee business? What’s not?

One way to determine what’s making you money is by accessing the data often delivered through your coffee shop's Point-of-Sale system. Your Coffee Shop POS system is one of the best ways to determine what is selling and what is not.

If your POS system cannot provide this basic inventory information, consider reading our recommendations for the Best Coffee Shop POS systems and decide on a Coffee Shop POS system that does.

Creating Your Coffee Shop Menu

For those of you who are just opening your coffee shop – and are putting together your coffee shop menu for the first time…

You will want to determine:

• Who is your target market?
• Your target market determines your menu and pricing.

For example, if your target customer base is bustling college students, your items may need to be tailored to be quick and “ready to go” – with your menu items being moderately priced.

If you plan to serve coffee in an upscale business area, your pricing will be slightly higher than average – but the emphasis on quality, uniqueness, and ambiance should also factor into your pricing.

Knowing who your target market is will develop an appealing coffee shop menu list and competitive pricing.

Let’s get more specific on how to create your coffee shop menu.

• Take the time to analyze your target market. You should ensure that your concept and menu meet the demands of the local demographics.

• If you are unfamiliar with the area where you are setting up your business, try your best to learn about what your average customer lives in your coffee shop's vicinity. Visit local coffee shops and see or ask what their best-selling options are.

• Consider your unique sales proposition (UPS) and see how you can embed it into the realities of your locale and market base.

• Design your coffee shop menu board in a way that’s clear, informative, and easy to read. Choose the menu outlook that fits your vision and overall idea. Categorize your coffee shop menu choices logically, such as espresso-based drinks, seasonal drinks, teas, other drinks, pastries, and brew bar options (if you have one).

If you suspect that your customers may not find your coffee shop menu appealing, you will quickly run into problems. This is where you need to “go back to the drawing board” and determine what they actually want.

Consider the following short story:

I know a coffee shop owner who went around the neighborhood with various pastries – she asked neighboring business owners and employees which baked goods they loved the most.

She experimented with different types of offerings. She told me that she was surprised at the choices her neighbors made and the feedback she received.

When she finally opened her café, she was confident that what she offered for sale that her neighbors would buy.

What are other coffee shops providing?

You have to be willing to take a moment to analyze your competitors as well.

Visit neighboring coffee businesses and figure out what their coffee shop menu and their pricing strategies are. Take mental notes on what customers are responding to and what their price points are. Where do you stand in terms of the value you are providing your customers versus what your competitors are getting?  

Some Common Coffee Shop Menu Issues

Your Coffee Shop Menu Is Too Long

Too many options can be paralyzing. The same can be true for coffee shop menus.

Very often, aspiring coffee shop owners create a menu too long. This stems from the desire to match all tastes and needs that often arise without doing much research. You want to be everything to everybody. For example, serving sushi, fried chicken, and espresso may be a bit too much.

Offering too many choices can often be the wrong approach. The more items you add to your menu, the more inventory items you will need – and the more expenses you’ll incur.

Avoid Overwhelming Your Customers

Look at your coffee shop from the customer’s perspective. For many first-time customers, it’s hard to make a choice when they find themselves in front of a long menu board.

The pressure of an overwhelming menu while a line builds up behind them doesn’t sit well with most customers.

Instead, what they will do is get what they know you have: a cup of coffee.

Of course, you have a barista to help the customer, but customers often want to feel that they are in charge of decision-making. Too many menu items bring more confusion rather than satisfaction.

A Coffee Shop Menu Is Too Short

While people don’t want to be overwhelmed with a menu, customers also really want choices.

Now, it’s okay to have a minimal menu. If coffee beverages are your only real offering, that’s okay, too!

However, you can still add to your coffee menu. For example, consider adding seasonal or signature espresso drinks.

If you offer higher quality syrups and several dairy-free options, this will automatically increase the customer options (and price points of such drinks).

Coffee Shop Menu Development Requires a Pricing Strategy

You cannot ignore that your price is essential to your menu development. If you are revising your menu, you should increase your prices to align with your financial goals.

What margin do you need to make to cover the cost of coffee, pay your taxes, invest back into your business, and make a profit? Making money as a coffee shop business owner should be your top priority. 

Take Your Time to Change Your Coffee Shop Menu

You may need time to experiment with your menu. This can be a challenging but fun opportunity to bring in your customer’s perspective.

If you are experimenting with a new cheesecake or batch of cookies – why not offer samples? Ask your customers which cookies they like best and why.

Use the opportunity to offer samples as a way to connect with your customers and find out what they want.

Just like our illustration above, sometimes going right to your customers is the best and most effective option for learning what they need from your coffee business.

Take your time, listen to the feedback you get, and build out your menu with your customers' help.

Barista Training Matters

Your coffee menu board may be posted. But it’s really this is your baristas who need to work to sell your coffee shop menu items.

Your barista should never stand in front of your customers with a blank stare, waiting for a decision (as if he or she were an employee at McDonald’s!).  

Rather, your barista should help usher a purchase, and then they should upsell on that purchase.

And…. They should make the customer feel good about it! In other words, your baristas should help your customers buy from you. In short, barista training matters.

Your customers are coming into your coffee business expecting to buy something. They want to buy something. Help them!

Your barista should know what items need to be moved or sold – and offer those menu items to your customer.

Additionally, your barista should be making a connection with your customers – finding out what they like or what they are “in the mood for” and then helping them determine what they would want.  

Like your customers, your baristas can also be a good source of information. Have them share with you what customers are asking for. Together, your baristas, your customers, and your coffee shop POS system can be a powerful way to gather information on your coffee shop menu.

Marketing Your New Items

Once you decide to change your menu, you need to promote it relentlessly to your customers. Market what you are offering by creating new menu boards, pushing your new items with the help of interior and exterior signs, and especially with your baristas' help.

Utilize your social media accounts to promote your new coffee shop menu items and offer special discounts. You might decide that you want to serve alcohol at your coffee shop. If this is the case, consider what events or times would promote your drink specials. For example, you might have an open-mic night or a poetry reading where you intend to serve wine and cheese. Any event provides you the ability to promote your new menu items.

Reanalyzing Your Data Constantly

Constant analysis of your data will be important for you to tweak your menu and your inventory. For example, people may love your chocolate chip cookies, but it’s the ginger snaps that are flying off your display case. You’ll want to make sure that you have the ingredients to make those ginger snaps always available.

Certainly, everything starts and ends with your menu.  If you are getting started, consider checking out our 30 Tips to Starting a Coffee Shop in our coffee business blog.

Are You Ready To Get Started?

Let's Start Your Coffee Shop Planning

There are a few things you can do right away to improve your menu options. The first is to talk to your customers. Ask them what they would like, start experimenting, and get their feedback.

If you haven't started your coffee shop, develop your coffee shop business plan, and make sure that your menu is the foundation of your entire coffee business. Consider getting our Complete Coffee Shop Startup Kit – we talk about coffee shop equipment and how to start a coffee business. This will help develop your coffee shop business concept and help you save money, too. 

Are You Ready To Get Started?

Unlock Your Dream Coffee Shop Business with Our Exclusive Coffee Shop Startups Kit!

Ready to transform your passion for coffee into a thriving business? Look no further! Our Coffee Shop Startups Kit is your key to brewing success. Here's why you can't miss this opportunity:

35-Lecture Coffee Shop Business Course: Our kit provides a comprehensive A-to-Z lecture series that covers what you should know and how to plan your coffee business. No more guesswork – follow our proven roadmap for success.

Comprehensive Coffee Shop Business Guide: Our kit includes a detailed, step-by-step guide that takes you from creating your concept to your grand opening.

Expert Interviews and Insights: Benefit from insider tips and industry secrets that successful coffee shop owners and experts share during one-on-one interviews. Learn from the best to stay ahead of the competition.

 Business Essentials: We provide business plan templates, checklists, and resources to streamline your startup process. From permits to menu planning, we've got you covered.

Cost-effective Solutions: Save time and money with our expert advice and budgeting tips. Maximize your ROI and minimize headaches.

 Adaptable to Any Setting: Our kit is designed to suit various locations and customer demographics, whether you're eyeing a trendy urban spot or a cozy corner in a suburban neighborhood.

Includes Exclusive BONUS Material!

👉 Order Now and Begin Your Journey!

Don't let the complexities of starting a coffee shop overwhelm you. Our Coffee Shop Startups Kit is your ticket to entrepreneurial success. Take the first step towards owning a profitable and fulfilling coffee business today.

Join the thousands of successful coffee entrepreneurs who started with a dream and a great plan. Your journey to coffee shop greatness begins right here!

Comprehensive. Proven. Affordable.

The Complete Coffee Shop Startup Kit

(Instantly Delivered To You)

Complete Coffee Shop Kit Sales Graphic

Coffee Shop Startups

Based in Seattle, Washington, USA, Coffee Shop Startups is dedicated to providing you with the most relevant information on how to start a coffee shop business successfully. Over the last 11 years, we've helped thousands of aspiring coffee business owners worldwide. We harness the experience, wisdom, and knowledge of many successful coffee shop owners to help you increase your chances of success and profits. We support business owners who want to start a coffee business by providing them with valuable information on starting their coffee business successfully.