JDBC Quiz 2 | Englishfreetest.com

Entrepreneur News-Times April 23

What Café Owners Should Know...

By Kayla Leitch

- Those who run an independent café will soon find that their decision on how much to charge for their offerings will have a major effect on profits. Because there is much competition among cafés, it is important to determine the optimal prices for products and services.

- When I first opened Café Connective nearly 10 years ago, I aimed to charge the same prices as the major coffee shop chains while providing superior service. This strategy succeeded in attracting customers, but it did not result in decent earnings. After my first year in business, I commissioned a market research study and found that most customers already perceive independent coffee shops as offering higher levels of service and product quality. With this in mind, I began to serve higher-quality, more expensive gourmet coffee products.

- To further justify my higher prices, I have made efforts to carve out a niche for my café as a neighborhood meeting place. Every month, I hold fun special events, such as brewing workshops or coffee tasting sessions, for customers. These gatherings have had a positive impact on my establishment's image.

- It is, of course, possible to charge lower prices than the competition, but this may not bring in enough additional sales to ensure profitability. Independent café owners have, after all, invested a good amount of money in equipment and inventory, so they must maximize their returns.

About the writer: A native of Dee City, Ms. Leitch runs a successful café there, and just last week her online resource for café and tea shop owners worldwide, www.cafe-owners.com, went operational.