FIVE OBVIOUS THINGS FOR CAFÉ OWNERS TO DO RIGHT NOW, AND FIVE NOT SO OBVIOUS THINGS FOR THEM TO DO…

As a specialty coffee supplier to over 350 cafes across Australia and beyond, we’ve got a front-row seat to the challenges café owners are facing right now. The cost-of-living crisis is hitting consumers hard, and it’s showing in their spending habits. From where we stand, we reckon people are drinking around 20% less coffee than they were just a year ago.

For cafes, that 20% drop in foot traffic and sales can be a painful blow to cash flow and profitability. Sadly, we’ve seen too many cafes struggling—closing their doors, selling out, or worse, going bankrupt.

But it’s not all doom and gloom.

We’ve also witnessed something extraordinary: cafes that are bucking the trend. Last week, I spoke with a café owner who told me she had just experienced her best week since Covid. Incredible, right? So, what’s the difference? What are these thriving cafes doing that others aren’t?

At Zest, we’re constantly learning from our partners and seeking to pass on what we observe. Because their success is our success. And right now, we want to offer some insights that could give café owners hope, determination, and a roadmap for navigating these tricky times.

THE BIG OPPORTUNITY:

Even if the average consumer is drinking fewer coffees per week, the overall pool of coffee drinkers in your area is enormous. The key to success isn’t just to ride out the storm but to claim a larger share of that pool. If you’re down 20% in sales, you need to attract 20% more customers to make up the difference. Every additional cup you sell doesn’t just restore your revenue — it propels it forward. The potential is there. Believe it.

FIVE OBVIOUS THINGS CAFÉ OWNERS SHOULD DO:

1. AMAZE WITH SERVICE

In times of stress, people need connection. A smile, a warm greeting, a bit of extra attention—these small gestures can turn a routine café visit into a moment of refuge. Amazing service isn’t about lavish gestures; it’s about creating a space where people feel safe, seen, and appreciated. From the barista to the manager, your team needs to radiate positivity. If you can build a reputation as the café that lifts people’s spirits, you’ll give customers a reason to return—especially when life feels tough.

2. LOOK AFTER YOUR ‘A’ PLAYERS LIKE GOLD

Your best employees—the ones who share your values, have a great attitude, and give customers the best experience—are your most valuable asset. They’re the people who help you thrive. Resist the temptation to cut costs by letting them go. Instead, nurture them. Offer incentives, make them feel included, and keep them invested in your success. A top-notch team will elevate your café far beyond what new, inexperienced hires could.

But on the flip side, if you have staff who are draining your team’s energy and culture, now is the time to address it. Give them the chance to step up, but if they’re not aligned with your goals, it might be best for both parties to part ways.

3. BUILD YOUR BRAND

Building your brand doesn’t have to cost the earth. Your brand is more than just your logo or your signage. It’s the experience customers have when they walk through your door, from the taste of your coffee to the vibe of your space. Think about every touchpoint: your food, your music, the way your staff talk to customers, the cleanliness of your space, the comfort of your seating. These elements make up the essence of your brand, and it’s this essence that will keep customers coming back for more. Especially in tough times, people seek familiarity and comfort.

4. CONSERVE CASH

Now is not the time for major expenses unless they’re essential to growing revenue. Delay asset purchases or big refurbishments. If you’ve been paying extra on loans, consider reverting to minimum payments for now. Cash flow is king when times are tough, so every dollar saved could be what keeps you afloat.

5. TRIM THE FAT

When times are good, it’s easy to overlook unnecessary expenses. But in a crunch, those costs can weigh you down. Take a forensic look at your overheads and cut non-essential spending. That could mean cancelling subscriptions you don’t use, reducing overstaffing during slower periods, or cutting non-performing menu items. Every dollar saved here is a dollar that can keep your café moving forward.

FIVE NOT SO OBVIOUS THINGS CAFÉ OWNERS SHOULD DO:

1. PROMOTE LIKE NEVER BEFORE

Now is not the time to go quiet. You don’t need a big advertising budget to get your name out there. Social media, especially Instagram, is a free tool that allows you to stay connected with your customers. Share stories, post updates, offer promotions. Sites like the Australian Good Food Guide (AGFG) are low-cost and can drive traffic to your café. Bundle your best-selling items into attractive deals that give people more value for money. Smart, creative promotions can go a long way.

2. DON’T BE AFRAID TO RAISE PRICES

It feels counterintuitive to raise prices when customers are already feeling the pinch, but holding off could hurt your bottom line. Your costs are going up—supplies, utilities, rent—and your prices need to reflect that. It’s not about gouging customers; it’s about staying in business. Customers who love your café and value your coffee will understand the need for a slight price increase, especially if you communicate it well. You’ll lose more by not raising prices than by losing the odd customer who baulks.

3. DOUBLE DOWN ON QUALITY

When money’s tight, customers become more discerning. They’re not going to waste their cash on average coffee or mediocre food. Make sure what you’re offering is top-notch. Invest in quality ingredients, deliver exceptional flavour, and create an experience that leaves no doubt in the customer’s mind that your café is worth every cent. If anything, now is the time to raise your game, not cut corners.

4. TIGHTEN YOUR FINANCIAL CONTROL

Now is not the time to fall behind on payments to suppliers. We’ve seen many cafés crumble under the weight of mounting debt. Keep your accounts in order and your suppliers paid. They are your lifeline—without their products, your café can’t run. Set clear budgets, know your numbers, and track your financials regularly. If you’re struggling to make payments, be open and upfront with your suppliers; they’d rather work with you than see you fail.

5. LOOK FOR OPPORTUNITIES

While many café owners are hunkering down, those with an eye for opportunity are positioning themselves for future growth. Good second-hand equipment, for instance, may be available at lower prices as other businesses shut down. Some cafes may even be looking to sell at a bargain. If you have the resources, this could be the time to expand your footprint or snap up a deal that sets you up for future success. Stay alert and keep your ear to the ground.

In challenging times, it’s easy to focus on survival. But the cafes that truly thrive are those that see opportunity in adversity. They innovate, they adapt, and they stay laser-focused on delivering a standout experience. If you’re willing to adjust and embrace new strategies, you might just find that your café isn’t just weathering the storm—it’s growing stronger because of it.

Remember, at Zest, we believe that the heart of a thriving café is exceptional coffee. But just as important is the mindset of the café owner. Stay positive, stay creative, and keep pushing forward. The potential is there. Believe it.

FOR THE GOOD OF ALL COFFEEKIND