All right. Hang onto your cups of Joe. I’m human.
And I want to tell you this story despite how incriminating it is. So get off your Judge Judy bench, admit that we’re all just bumbling about on this merry journey and let me off the hook.
It’s the morning I’m supposed to drive from our headquarters in Oakbrook Terrace, Ill., to La Porte, Ind., where Gus Olympidis and his team at Family Express, which is based in Valparaiso, Ind., are set to meet me. It’s the photo shoot for our cover story on coffee, and Gus’ team is about to roll out a fantastic new coffee system: the “Lamborghini” of coffee makers, right out of the manufacturer’s box and ready to let customers make their own hot or cold espressos with their choice of milk, syrup or foam. No barista needed.
The hour-and-a-half drive goes awry from the beginning because I wrote North instead of South on my directions. My GPS takes me into the middle of a cornfield. And it’s 9 a.m., right when I’m supposed to be at the Family Express store. Totally confused, I pulled to the nearest intersection and looked up to see what corner I was on. I kid you not: Fail Road.
I took a picture as proof of what the universe was telling me.
After I made calls and pleaded for help, I got back on track and arrived at the site 45 minutes late. Gus and his team were gracious and flexible with their time. The photographer had just finished setting up lights for the shoot, and I got there in time to help orchestrate the proceedings.
During the shoot, Gus made the case for his premium investment. That when it comes to coffee, the industry is not following the customer. He says the Starbucks- style drink is where millennials and female customers are headed. Even as the industry is cursing McDonald’s and Dunkin’ Donuts for stealing our business, he says customers have already left for this “new frontier.” (Click here to read more.)
As the photographer was taking a group shot of the leadership team, he was trying to get some genuine laughter and smiles going. So he said, “OK, everybody, think about how this machine is going to make you lots of money. Say ‘Money!’ ”
At least that’s the hope. And priced at upwards of $30,000 a system, this device may prove an expensive test for this 60-store chain—potentially an epic fail.
But there’s data to back up this hunch. NACS numbers show the industry’s hot- dispensed sales are off, falling 3% from the year prior. Other numbers show optimism among cross-channel competitors for specialty coffee drinks, and little sunshine from c-store retailers.
That’s not to say that hot-dispensed is dead. Far from it: Hot coffee accounted for $46,000 in average per-store sales last year and makes up 77% of hot-dispensed sales, according to the NACS State of the Industry Report of 2013 Data.
But declining numbers are declining numbers. And whether because of cross- channel competition, shifting tastes or bad weather, the industry has a responsibility to react. Which it will.
Even in a time of consolidation, in which financial motives drive every decision, the innovators will be up for the challenge. They bank on their instincts and aren’t afraid to take calculated risks. When they break new ground and succeed, it’s almost its own reward.
Family Express is not alone. Our recent reporting has found that both Kwik Trip of La Crosse, Wis., and San Ramon, Calif.-based Chevron’s ExtraMile chain are both actively developing similar programs.
The channel has always been shy about labor-intensive opportunities. But our industry is already attacking foodservice with renewed vigor. While the answer for many won’t be Family Express’ elaborate device, it could be a person creating the drinks that people want.
I told Gus’ son Alex about my trip to Fail Road, and he said the company has a store there. And when staff started calling it the Fail Store, Alex said to them, “Fail is so negative. Maybe we could call it the Below Average store.” And they said maybe they could rename the road Below Average Road.
Sometimes it’s difficult to be above aver - age. Or to come from behind. But it’s more exhilarating to keep pushing, even though you’re late—or latte—to the party.
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