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Some good news: Recent data from Technavio found that the market size for specialty coffee shops is expected to grow by $39.17 billion by the year 2027. However, fluctuating coffee bean prices means that the margins on coffee itself will be unreliable. This has inspired many independent coffee shops to stock retail items alongside their drink offerings.
Cafes have always been more than just someplace to grab a cup of coffee. More and more, they function as integral “third spaces”—somewhere to spend time that’s neither one’s home nor office. Plenty of companies have started to combine retail with community hubs, and cafes fit especially neatly into this niche. For cafe owners, selling retail products can supplement profits, enrich customer experiences, encourage repeat visits, and forge deeper community connections.
What are the benefits of selling merchandise in your cafe?
Incorporating retail into a cafe is more than just diversifying products; it’s about enhancing the establishment’s role in customers’ daily lives. In North America, nearly 25% of retailers who shop on Faire use their brick-and-mortar location as both a retail shop and community hub.
This strategy offers a low-risk avenue for business growth. It invites customers to spend more time and money in the cafe and fosters loyalty by offering both quality products and memorable experiences. Selling retail items can significantly boost your cafe business in several positive ways:
- Additional revenue stream: Merchandise sales provide an extra source of income beyond those from coffee and food. There are great options for tea and coffee lovers—like decorative mugs, food-related gifts, bags of coffee beans, or insulated mugs and tumblers.
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Deeper connection with customers: By offering products that align with the interests and preferences of your customer base—like organic snacks or healthy eats—you create a more personalized experience. These choices show that you understand and cater to your customers’ tastes and needs, which can strengthen their loyalty to your shop.
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Differentiation from competitors: Offering high-quality, unique items that customers can’t easily find elsewhere can make your coffee shop a destination for more than just coffee. Offering products that are distinctively yours, especially if they align with your brand’s ethos (such as eco-friendly products), can give you a competitive edge.
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Creating a complete experience: Selling items that complement the coffee shop experience, like artisanal snacks, unique drinkware, or tea infusers, can enhance the overall customer experience. This holistic approach can turn a simple coffee purchase into a more memorable visit.
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Values alignment: Selling items that align with the lifestyle or values of your customer base (like food products made with locally sourced ingredients or from companies that give back to their community) can reinforce shoppers’ connection to your brand. It demonstrates shared ethics and a connection beyond just selling coffee.
What to sell in a cafe
Now for the fun part … choosing what to sell! The products you include in your business plan should align with your brand’s identity and appeal to your ideal customer. You can curate a specific atmosphere and culture within your shop by curating products thoughtfully. Here are some ideas to get you started:
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Coffee and tea: Capitalize on your primary product by selling small-batch coffee blends or artisan teas. This not only promotes your brand but also meets customer demand for home brewing.
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Coffee- and teaware: Quality brewing equipment, unique espresso cups, or handmade teapots can appeal to coffee and tea enthusiasts looking to replicate their cafe experience at home.
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Snacks and confections: Offering premade snacks encourages longer stays and can give a cafe a competitive edge—especially if the snacks cater to unique tastes or dietary needs.
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Novelties: Curated stationery items like journals, pens, and magnets, particularly those featuring local art or eco-friendly materials, can appeal to a wide customer base.
- Water bottles and insulated cups: Selling aesthetically pleasing, high-quality water bottles and insulated cups offers customers practical, eco-friendly options, while subtly reinforcing the cafe’s values and decor.
As you start selling products, it’s important to regularly manage your inventory and assess the performance of your merchandise. This helps you tailor your offerings to your customers’ demand and helps you plan what to stock your shelves with next.
How to pick the right wholesalers for your business
Partnering with imaginative and innovative vendors will make for a compelling and appealing collection of retail goods for your customers. You’ll want to make sure your new wholesale partners are easy to work with, prioritize quality, and are dependable. A platform like Faire is the perfect place to connect with these brands.
When selecting products from wholesalers, keep the following five things in mind:
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Alignment with brand identity: Choose products that reflect your cafe’s brand and ethos. If your cafe emphasizes organic or women-owned businesses, source products that align with these values.
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Quality assurance: Ensure the wholesaler provides high-quality goods. Your retail offerings should maintain the standard your customers expect from your cafe’s coffee and food.
- Unique and exclusive items: Wholesalers often have access to items not widely available, and by picking special products, your cafe can stand out from the crowd.
- Strong relationships: Reliable partnerships can lead to better deals, exclusive items, and insights into upcoming product trends. Make sure your new partner is responsive, conscientious, and transparent.
- Seasonal and trending products: Stay on top of trends and holidays to keep your retail space dynamic and exciting for regular customers.
Putting your new coffee shop merchandise on display
Merchandising is more than just product arrangement; it’s about creating an inviting and cohesive customer experience. Your products should be displayed in a way that’s not only visually appealing but also easy for customers to explore.
Think of your merchandise as an extension of your cafe’s decor and ambience, strategically placed to catch the eye and encourage sales. Make sure you have an effective display strategy, like grouping affordable items near the checkout to encourage impulse buys.
Your display should be more than just attractive; it should echo your cafe’s unique style and values, making every item a part of your cafe’s story.
Educating your team—and your shoppers
Your staff members are a huge part of making retail a success in your store. Spend some time training them on the products you offer so they can confidently explain each item’s features, benefits, and what makes them special. A knowledgeable recommendation from a warm employee will go a long way toward increasing sales.
Your team should also be ready to do product demonstrations for shoppers, which will bring the products’ features to life and let customers visualize how they might use them in their daily routines. This makes the customer experience more engaging and informative and also sparks personal connections.
Final Thoughts
Expanding your cafe into the realm of retail can deepen customer relationships and improve your bottom line. By carefully selecting products through wholesalers, educating your team, and creating an inviting retail space, your cafe can offer customers more than just a great cup of coffee—it can provide a memorable experience that keeps them coming back.
