In case you haven't noticed, competition in the retail coffee business is fierce. Chains are expanding into new markets and businesses as diverse as fine restaurants and gas stations are offering espresso. Specialty coffee is everywhere. So, how can you, a specialty coffee retailer, face this challenge?

At Bellissimo, in addition to helping people enter the industry, we help people expand their existing specialty coffee businesses. Because of the ever-changing retail climate, we encourage all of our clients to develop full-blown gourmet beverage programs to broaden their appeal and increase sales. Granitas, smoothies, milkshakes, iced and blended coffee drinks, premium teas, European-style sodas, and, in some cases, beer, wine and liqueurs are finding their way onto more coffee bar menus. Many retailers are also offering light food items meant to compliment this wide array of beverages and encourage add-on food sales.

"Ninety-five percent of my clients have expanded beverage programs," says Bellissimo consultant Ed Arvidson. "I tell all of my clients that even though coffee is the driving force behind their businesses, they really need to cater to a broad range of people and offer beverages that appeal to more than just the coffee drinker." What are some of the most common beverages retailers are adding to their menus? According to Arvidson, we're seeing more cold beverages. Granita is extremely popular, and smoothie programs have become almost standard because they are relatively inexpensive to implement.

Some programs require only a sink, blender and refrigeration. As an added twist, many retailers are incorporating nutritional supplements and green tea into smoothies and marketing them to health-conscious customers.

For retailers with established smoothie programs, milk shakes are also becoming popular, requiring only the addition of an ice cream freezer and dipper well. Some companies even offer an ice cream base that doesn't require refrigeration. As always, check with your health department before adding any new program to your store.

Offering a variety of cold beverages is especially important if your business is located in a warm-weather climate. When it's hot and humid, an iced or blended cold beverage sounds much more appealing than a steaming latte. Other cold beverages found in today's coffee bar are flavored iced teas, iced and blended coffee drinks, and European-style sodas, all of which can generate attractive profit margins.

Innovative hot beverages, including chai, traditional and exotic tea varieties, and flavored hot chocolates are also popular and will appeal to those who desire hot, non-coffee beverages.

Even if you operate a drive-thru, providing quick and easy access to various beverages-in addition to coffee-has the potential to generate significant sales. For years, fast-food restaurants have offered a variety of drinks that draw customers to their windows during off dining hours. Convenience stores have long recognized the importance of an extensive beverage offering.

If you are located in a metro area, you may want to consider courting the after-work crowd with a menu of beer and wine. You only need to look to the Italians to see how successful this concept can be. The addition of wine and beer can attract evening customers looking for a place to socialize and enjoy a drink in a comfortable sit-down atmosphere.
   
If you are located in a metro area, you may want to consider courting the after-work crowd with a menu of beer and wine. You only need to look to the Italians to see how successful this concept can be. The addition of wine and beer can attract evening customers looking for a place to socialize and enjoy a drink in a comfortable sit-down atmosphere. But what food items will you serve with your expanded beverage menu? Add foods that compliment your beverages-pastries, muffins and Danish in the morning. Then after the morning rush, have plenty of impulse items on hand, such as cookies, biscotti, ruglah or caramel-filled wafer cookies.

The only time you will want to stray from "complementing" foods is at lunch. Panini, for example, is a natural. Small amounts of gourmet ingredients keep food costs low, and, best of all, they can be made in advance. In the afternoons and evenings, desserts and cakes are perfect accompaniments to coffee and the many other beverages you may be serving.

A word to the wise: Keep close tabs on the latest trends. Five years ago, when chai was just breaking into the marketplace, retailers had a "wait and see attitude" about the product. Today, it is a staple in many coffee bars. Who knows, maybe bubble tea will be the next must-serve item.

If you are looking to expand your beverage and food menu, Bellissimo has created a new video called "Everything But Coffee." The video will teach you how to maximize your business sales and increase profits by offering many of the beverages and food items discussed above.