Foodservice Equipment & Supplies

AUG 2018

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AUGUST 2018 • FOODSERVICE EQUIPMENT & SUPPLIES • 75 market spotlight From a food perspective, coffee cafes now tap into the European bakery concept, overcoming past challenges of incorporating the proper equipment and logistics. Starbucks opened its first Reserve store with a Princi Italian bakery concept in February at its Seattle headquarters location. "From an equipment and quality offering, [coffee con- cepts] are moving the needle," says Tristano. "If these opera- tors can incorporate the quality of what they've invested in their restaurants, they can make food quality on par with other cafes and up the price points." The Players Among the changes coffee-concept operators note are more requests for customization with drinks and more advanced coffee equipment, such as equipment that enables operators to brew by batch. To accommodate the greater number of requests for cus- tom drinks, Dutch Bros. Coffee, a drive-thru coffee concept based in Grants Pass, Ore., now offers featured menu items. The menu rotates monthly and showcases nine drinks that highlight flavor combinations from the chain's secret menu, says Rachel Lahorgue, director of operations at Dutch Bros. "There is an increased desire for customization, and we are embracing this by offering a monthly featured menu." A privately held drive-thru coffee company, Dutch Bros. has 300 locations in 7 western states and more than 9,000 employees. Its coffee kiosks serve specialty coffee drinks, smoothies, freezes, teas, a private label Blue Rebel energy drink and nitrogen-infused cold brew coffee. The chain roasts its own beans. Its signature offerings include brewed coffee, specifically Dutch Bros. Private Reserve, a blend of El Salvadoran, Colom- bian and Brazilian coffee beans; cold brew coffee, likewise drawn from the Private Reserve blend, then handcrafted, chilled and packaged in nitrogen-infused cans; and Rebel, the chain's propri- etary energy drink, available in a can or infused in beverages. Dutch Bros. maintains a limited menu — beverages only — and a small profile — locations range from 400 to 600 square feet. The standard equipment package includes espresso machines, coffee grinders, blenders, hot water towers and freeze machines. Technomic data shows chain growth, with an 8.5 percent increase in sales for Dutch Bros. and a 5.5 percent increase in units last year. Another independent, Revelator Coffee Company, finds pour-overs are a growing request. Pour-overs literally mean pouring hot water over the ground beans by hand. It's a method Eden Abramowicz, Revelator's director of coffee, finds increasingly common. "In the last decade, we've seen a move in the industry of cafes offering pour-overs by hand, where they don't have to commit to brewing two gallons but instead can brew by the cup," says Abramowicz. "Now the trend has flip-flopped to batch brewers. Since the equipment technology is so ad- vanced, these units can mimic what baristas are doing." Both a roaster and an operator, Revelator has roughly 20 cafe locations in Birmingham, Ala.; New Orleans; Atlanta; Nashville; and Charleston, S.C. "We balance our production, providing some pour-over beverages by hand, while incorporating brewed drip coffee using automated systems," says Eden Abramowicz, Revela- tor's director of coffee. In addition to batch brews and pour-overs, this chain offers single origin coffee for customers who seek a unique flavor profile, as well as espresso-based drinks. The beans' country of origin defines the coffee selections. Revelator's big automatic brewers have USB capabilities so staff can transfer recipes to any location, allowing the cof- fee to remain consistent. The beverage offer does not change by location, but food offerings vary based on kitchen space. With a focus on drive-thru only coffee service, Dutch Bros. Coffee has more than 300 loca- tions in 7 western states. Growth Chains 2017 U.S. Sales % 2017 % Chain Name ($000) Change U.S. Units Change Scooter's Coffee & Yogurt . . . . $87,100* . . . . . . . 15 . 4% . . . . . . 175 . . . . . . . 12 . 9% Dutch Bros . Coffee . . . . . . . . . . . $235,700* . . . . . . 8 . 5% . . . . . . . . 288 . . . . . . . 5 . 5% Starbucks . . . . . . . . . . . . . . . . . . . . $17,650,000* . . . 7 . 0% . . . . . . . . 13,930 . . . . 5 . 8% Biggby Coffee . . . . . . . . . . . . . . . $132,200* . . . . . . 4 . 1% . . . . . . . . 249 . . . . . . . 0 . 4% Peet's Coffee & Tea . . . . . . . . . . . $284,400* . . . . . . 3 . 7% . . . . . . . . 241 . . . . . . . 0 . 0% *estimate Source: Technomic's 2018 Top 500 Chain Report

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