FEDA News & Views

FEDAMayJune2015

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Several of the bean-to-cup machines were developed with a side-brewing arm that allows brewing into a thermal carafe in order to provide a reserve during high-volume periods. This reduced the need for two separate brewers, a real value for operators with limited space. Bean-to-cup equipment changes the economics of the coffee roasting busi- ness and how suppliers distribute brew- ing equipment. It's now less likely for coffee roasters to provide the "free" equipment that made it easy for custom- ers to pump out and waste as much as 50 percent of all the coffee they brewed. Coffee roaster companies are already refraining from providing "free" machines, and major chains are buying or leasing their brewers. Large brewing equipment manufacturers now have a motive to re- invent their brewers for the marketplace without worrying about coffee vendors that provide "free" equipment and main- tenance. The Win-Win Choosing to move into the coffee equipment business creates a need to educate DSR and service staff. There may be pushback from some customers because of the traditional habit-forming methods of the past. Roaster companies aren't big fans of bean-to-cup pressure brewing since it cuts down their sales. In addition, whole bean coffee pricing is cheaper than ground coffee, so roasters total revenue will decrease. To counter that mindset, prepare documentation that shows the payback of buying equip- ment and using whole beans. Make sure the data is relevant to the potential cus- tomer with respect to sales volume and quality of product. All in all, these changes are a win for everyone. Roaster companies can get out of the equipment business they really didn't want to be in; FEDA dealers can sell coffee equipment without compet- ing against "free equipment." Customers can offer a better quality product to patrons, and everyone gets a better cup of coffee. 8 Trends that will Impact the Beverage Equipment You Sell Over the Next Five Years Coffee beverage volume continues to expand, and customer expectations for high-quality fresh-brewed coffee will grow with it. Cold coffee drinks are now growing faster than hot coffee drinks and account for more than 25 percent of all coffee sales in the U.S. New equipment offerings can cold-brew coffee onsite, eliminating the need for concentrates or coffee extracts. Peet's Coffee recently announced a major initiative in this area. The new industry standard is for coffee to be made by the cup in all but the busiest times. Holding coffee for hours in insulated metal containers or glass decanters will be mostly history in all but the lowest end of the market or high-volume banquet service. Coffee lovers should rejoice. The majority of coffee equipment will be sold either by kitchen equipment or coffee suppliers, not leased or rented. Major hotel and restaurant chains (Darden is an example) have stopped using coffee-roaster-supplied equipment and now purchase the brewers just as they would any other type of equipment. As operators adapt to bean-to-cup brewing, the trend away from roaster-supplied brewing equip- ment will accelerate. Bean-to-cup machines for both espresso and coffee easily adapt to self-ser- vice applications. Offices, automobile service waiting rooms, and hotel/ airline lounges commonly have them. Self-service coffee equipment makes quality coffee available to more customers in more points of service and the product is easily customized. Someone will be selling these machines to your customers. Why not your company? When brewing equipment is sold instead of rented, service will shift from the coffee vendor to more traditional foodservice industry service agen- cies. The latest equipment has built-in diagnostic systems that allow the operator to resolve basic problems onsite. The equipment also communi- cates online with the brewer manufacturer and service providers to supply critical information for a more detailed diagnosis. This includes informing the service agency what components need to be replaced, which avoids a follow-up service call. Coffee equipment has become more aesthetically pleasing. Grinders are integrated into brewers creating a cleaner look. As a result, more equip- ment is moving to the front of the house. Equipment vendors are following the same playbook as espresso machine vendors, designing cool-looking equipment with touch screen interfaces instead of mechanical switches and knobs. of the equipment business they really didn't want to be in; FEDA dealers can sell coffee equipment without compet- ing against "free equipment." Customers can offer a better quality product to patrons, and everyone gets a better cup ment is moving to the front of the house. Equipment vendors are following the same playbook as espresso machine vendors, designing cool-looking equipment with touch screen interfaces instead of mechanical switches and knobs. May/June 2015 23

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