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A-to-Z Coffeehouse Manual
What About Decaf?
by Timothy Castle

In planning the offerings of a coffeehouse, decaffeinated coffees are usually an afterthought. It is often assumed that decaf accounts for a small percentage of sales and that, furthermore, decaf drinkers don't really care whether there is a selection of high-quality decaffeinated coffees available to them. (Given they are decaf drinkers, people think they must not care that much about the taste of coffee in the first place!)

   All of these assumptions are wrong, of course, and the would-be coffeehouse proprietor that makes them does so at the risk of losing many true coffee lovers to the competition. Recent research conducted by the management of Swiss Water Decaffeinated has revealed that most decaf drinkers (nearly 65 percent) also drink regular coffee during the day. This means the typical decaf drinker really loves the taste of coffee and wants to keep enjoying it past the point of not wanting any more caffeine. In addition, these dual users, on average, drink more coffee than those who just drink regular or decaf alone, making them very desirable coffee customers indeed. Obviously, most dual users will find it easiest to get their regular and decaffeinated coffee at one location, and the coffeehouse that serves excellent coffee in regular and decaf versions is most likely to earn the loyalty of these customers throughout the day.

   A coffeehouse is also likely to serve more coffee at night—when decaf consumption, on an absolute basis and as a percentage of sales, tends to be much higher. So depending on when you expect high traffic through your store, you could find yourself serving far more decaf than you might have anticipated—and to a much more demanding coffee drinker. "Most coffeehouse operators assume their decaf customers are comparing their decaf to similar products," notes Dan Alvo, marketing manager for Swiss Water. "In reality, though, many of those decaf drinkers were drinking regular coffee this morning, and that's the standard they're trying to match. It stands to reason that the operator who can make the switch from regular to decaf as imperceptible as possible will retain the most customers throughout the day."

   Even among those specialty coffee drinkers who drank only decaf, concerns about quality were foremost when selecting a decaffeinated coffee. Another assumption often made about the decaf sector is that demand is stagnant. Again, while this assumption may have been true in past years, the Swiss Water Usage and Attitude Study indicated that a third of the specialty coffee drinkers surveyed were drinking more decaf than they were a year ago. "What this indicates to us," Alvo observes, "is that there is far more opportunity in this category than many of us have assumed. Further, the key to this potential for sales growth is quality."

   Since many coffeehouse and espresso bar operators do not take their decaf customers as seriously as their regular coffee customers, they often do not take their decaf offerings as seriously. But the same strict standards that apply to your regular coffee should apply equally (if not more) to your decaffeinated coffees. After all, it may be that you can differentiate your business by offering an impressive selection of decafs. In this increasingly competitive and sophisticated market you will need every edge you can get—a great-tasting cup of decaffeinated coffee could be one of them.

Timothy Castle is president of Castle Communications in Santa Monica, Calif., and is a past president of the Specialty Coffee Association of America. He can be reached at 310/479-7370.


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