In the ever-evolving coffee business landscape, where slim margins are the norm, café owners are deploying innovative strategies to balance the books. One such trend gaining traction is a subscription or hang-out fee for loyal patrons who frequent coffee shops for extended periods.
Tim Taylor, owner of Chicago’s Pedestrian Coffee, encapsulates the financial pressure. “To be in a healthy and profitable place financially, we need to do approximately $20 per seat, per day,” he told Slate. While weekend traffic helps reach this goal, weekdays often fall short.
Taylor has floated but not implemented a $20 fee allowing patrons to sit for up to four hours, including WiFi, a drink, and a pastry. This model aims to ensure revenue per seat and maintain availability for other customers.
New York City’s Devoción has adopted a different approach: limited-time WiFi access tied to purchase receipts. This strategy requires additional purchases to continue surfing the web, incrementally boosting sales.
Balancing the roles of a communal hub and profitable business remains challenging. Café owners must navigate the fine line between fostering community and avoiding a room full of patrons buying a single coffee to camp for hours.
Read the full article by Zac Cadwalader on Sprudge.
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