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Presented By: Kerry Group

Text of Church Cafes

  • H E L P I N G L E A D E R S B E C O M E B E T T E R S T E WA R D S .

    Presented by: Kerry Group

  • CHURCH EXECUTIVE C H U R C H C A F S2 churchexecutive.com

  • C H U R C H C A F S CHURCH EXECUTIVE 3churchexecutive.com

    Table of ContentsWHY A CHURCH CAF? 4It isnt difficult to make the case for a caf in your (or any) church. From fellowship to ministry-supporting revenue potential, if done right, many churches have discovered a recipe for success.

    To set the stage, our team surveyed dozens of church caf managers, as well as the specialty beverage experts at my company, Kerry a global leader in food and beverage products and technologies. Their tried-and-true insights are integral for setting up coffee shops in houses of worship.

    By Jim Wendt

    BEST PRACTICES: PURCHASING AND SUPPLIES 7There are three ways to make money from a caf: sell more, raise prices, or lower costs. While selling more is always worth pursuing, raising prices can be tricky.

    So, the fastest way to make your church caf more profitable is to lower costs.

    By Levi Andersen

  • CHURCH EXECUTIVE C H U R C H C A F S4 churchexecutive.com

    WHY Achurchcaf?

    By Jim Wendt

    It isnt difficult to make the case for a caf in your (or any) church. From fellowship to ministry-supporting revenue potential, if done right, many churches have discovered a recipe for success.

    To set the stage, our team surveyed dozens of church caf managers, as well as the specialty beverage experts at my company, Kerry a global leader in food and beverage products and technologies. Their tried-and-true insights are integral for setting up coffee shops in houses of worship.

    Praise the latteIt helps to first understand the caf landscape and marketplace. Long gone are the days of simply ordering a cup of coffee. Consumers

    including the people who attend your church want greater variety, flavors and options than ever before. The Specialty Beverage industry was borne of this consumer demand. Today, latte and frappe menu items far exceed coffee options.

    Increasingly, more people are seeking out healthier alternatives to coffee. The increasing variety of formats and flavors in the U.S. market has proven effective at attracting younger consumers.

    More consumers are seeking out coffeehouse treats. This trend supports the 16.5-percent growth in coffeehouse sales from 2008 to 2013, which reached $28 billion in annual sales!

    Forward-thinking churches have clearly adopted these trends, offering everything from coffeehouse drink stands to fully constructed and branded cafs on church premises.

  • C H U R C H C A F S CHURCH EXECUTIVEchurchexecutive.com 5

  • CHURCH EXECUTIVE C H U R C H C A F S6 churchexecutive.com

    Focus on: church caf operatorsIn an effort to better understand our church customers, we surveyed

    dozens of church caf operators. Membership in these houses of worship ranges from a few the hundred to several thousand. Heres what we found: Nearly one-third (27 percent) of their cafs have been open for two yearsor less. The rest have been in operation between three and six years.

    More than 70% serve beverages that include lattes, blended frappes,blended ice coffees, coffee and hot teas. One respondent noted thathis churchs caf serves specialty drinks created by the teens in themembership.

    More and more churches are expanding their beverage offerings toappeal to consumers broader tastes. To this end, 56 percent now serve chai tea lattes and fruit smoothies. Additionally, some churches (50 percent) now offer iced teas and 27 percent offer lemonades.

    Only 13 percent of churches offer Sunday-only beverage service; 69 percent open their cafs in conjunction with other weekly events andactivities. And, 19 percent of these cafs mostly in larger houses ofworship are open every day.

    Driven by community and fellowshipWe asked caf operators in houses of worship a critical question:

    Why do you offer caf-style beverages at your church? The vast majority (82 percent) said that creating a pleasant atmosphere for parishioners was very important or critical. But with a 100-percent response rate the overwhelming motivation was to encourage fellowship and a sense of community.

    Additionally, encouraging young people to attend was a primary consideration for 93 percent of respondents. And, as Kelly White, lead pastor at Horizon Church in Victorville, CA, points out: It gives our teens job experience that they need.

    What about planning?Beverage product selection topped most respondents lists when

    planning their church cafs. Its no wonder, then, that these forward-thinking church cafs offer so many drink options. For Carlene Boldizar, a manager at Central Church in Collierville, TN, Big Train Chai and DaVinci syrup and sauces are proving very popular.

    The old adage location, location, location! rings true at churches, too; 81 percent said the caf location was very important or critical to its success. Accordingly, most churches (75 percent) picked locations where a large number of people could gather, and 44 percent chose locations that were previously underused. We created a fun visual look, as well as plenty of seating to promote places for people to connect, explains Horizon Churchs Kelly White.

    Additionally, 100 percent of respondents were concerned about resources, and 94 percent considered costs to run the caf. Electricity availability (to operate blenders and other equipment) and proximity to a kitchen or back office area also weighed in.

    When it comes to keeping operational costs in check, 93 percent of respondents said they use volunteers to man the barista stations. Others (20 percent) pay support staff. And, others (7 percent) use existing church staffers to help with the administrative tasks for purchasing and setup.

    Revenue buildingAlthough most respondents indicated profit was not a factor in setting

    up a church caf, one still must consider the price-cost model to gauge the potential for church fundraising.

    According to our survey, the average cost of a specialty drink to the church ranged from $.30 to $1.75. To the customer, specialty drink prices ranged from $3 to $4. By keeping overhead low and staffing primarily with church volunteers, church cafs can generate healthy margins of $1.25 to $3.70 per drink. This can add up quickly: respondents in our survey serve between 100 and 1,000 drinks per week! With some

    quick, back-of-the-napkin math, thats a monthly revenue increase between $500 and $16,000 vital funds for supporting existing church ministries or funding new ones.

    No barista neededAs with any operation, quality is essential to a successful church caf

    in particular, great-tasting offerings. When asked to rank their selection criteria for specialty beverage products, church caf operators cited flavor and taste as No. 1.

    Food safety concerns (which makes recognized brands preferred) was also very important, followed by customer service especially, accurate and fast shipping (before-Sunday delivery) and the ease of purchasing online.

    Ease of use and preparation weighed in heavily, too. In this respect, Big Train a leading specialty beverage powdered mix brand has supported churches for decades. Many churches like the just add water approach to making gourmet drinks, explains Levi Andersen, Kerrys Beverage Specialist and former coffeehouse owner. [Churches] like beverage mixes from brands like Big Train and DaVinci Gourmet, because anyone can learn quickly, including church volunteers.

    And, for Karen Maitoza, who represents Summit Christian Church in Sparks, NV, the types of products she likes to purchase come down to a few key criteria: shelf-stable; no refrigeration space needed.

    Easy preparation is also important for large-scale events such as pancake fundraisers and church-wide breakfasts. To this end, Goldendipt a brand with a 50-year history offers churches a wide variety of baked good mixes in large-quantity bulk bags: gourmet pancakes, waffles and more.

    All in a nameTo name, or not to name, your church caf that is the question. Creating a brand name can create some excitement and intrigue while

    keeping parishioners coming back. Respondents shared some of their own cafs clever names, including: Intersection Caf at New Castle Bible Church (Mackinaw, IL) Crosswalk Caf at Central Church (Collierville, TN) Grace Caf at Grace Christian Church (Sterling Heights, MI)

    What do they all have in common? A focus on fellowship and faith.

    Whatever you end up naming your caf, focus on building a greatgathering place where a growing population of drink enthusiasts will want to congregate. Select easy-to-make products your volunteers can quickly master. And, pick diverse products that taste great to keep the fellowship strong.

    Jim Wendt has more than 20 years of experience in marketing, sales and business development. He is the eCommerce Marketing Manager at Kerry, responsible for digital marketing for Kerrys North American Food and Beverage Brands, including Big Train, DaVinci Gourmet, Oregon Chai, Goldendipt (griddle, baked goods, batters and coatings products) and Golden Ladle (soups and culinary sauces).

  • C H U R C H C A F S CHURCH EXECUTIVE 7churchexecutive.com

    PRACTICES:BEST

    PURCHASING AND SUPPLIES By Levi Andersen

    Tried-and-true strategies for keeping caf costs in check

    So, youve opened your church caf and youre ready to show off your operational excellence. Keeping costs down is key not only in the name of good stewardship, but also to maximize your cafs fundraising potential.

    There are three ways to make money from a caf: sell more, raise pric