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Why Do Cafe Owners Sign Coffee Supply Contracts

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  • Why Do Cafe Owners Sign Coffee Supply Contracts

    I would like to address the ongoing debate of why cafe owners persist in signing contracts that do not allow them to exit if their coffee company of choice.... no longer becomes their coffee company of choice due to inconsistent coffee, bad service and fluctuating coffee prices...

    Where has the freedom of choice gone.... if cafe owners do not sign the contracts then the coffee companies have to work harder to maintain your business... the winner is you the cafe owner and your loyal customers that want you to deliver them the best coffee possible!!!

  • #2
    Re: Why Do Cafe Owners Sign Coffee Supply Contracts

    Originally posted by 466B40676E6E63020 link=1233872442/0#0 date=1233872442
    I would like to address the ongoing debate of why cafe owners persist in signing contracts that do not allow them to exit if their coffee company of choice.... no longer becomes their coffee company of choice due to inconsistent coffee, bad service and fluctuating coffee prices...

    Where has the freedom of choice gone.... if cafe owners do not sign the contracts then the coffee companies have to work harder to maintain your business... the winner is you the cafe owner and your loyal customers that want you to deliver them the best coffee possible!!!
    This will be a great discussion Phil!

    I think they sign contracts because they want "free" machines, grinders, wind barriers, advertising, crockery, uniforms et al.

    Most of these owners could NOT give a hoot about whats in the cup

    Coffee companies provide the "free" stuff to get accounts.

    Wouldnt it be interesting if the industry could have a code of conduct where this practice was not allowed  :-?

    P.S- Welcome to CS. Great to have you here!

    Comment


    • #3
      Re: Why Do Cafe Owners Sign Coffee Supply Contracts

      I see similar discussions in the IT industry - the concept of capex vs leasing/rental.

      In all cases the capex model is the cheapest, however for a cash poor company having the cost of hardware offset as part and parcel of monthly charges is an attractive option.

      Although I hate to generalise, there are a vast number of "cafes" in Australia, and relatively few "coffee houses". I think this has a large part in whether people buy their own equipment and look for a boutique roaster, or whether they simply speak to a known brand coffee company and extract a deal.

      Until consumers are willing to vote with their wallets, well see the scenario youve painted continuing for a long time to come. This of course implies that consumers can tell a good coffee from a bad one... Judging by the number of people I see queued outside Mecca of a morning, Id suggest that people are slowly taking on board the concept of coffee as a quality food product, rather than just a caffeine hit. On the other hand, the number of people who still use the cafe downstairs due to its convenience also suggests that people are going to do whatever is easiest and most convenient for them!

      Grant

      Comment


      • #4
        Re: Why Do Cafe Owners Sign Coffee Supply Contracts

        Originally posted by 722D352328232F262625252D212E400 link=1233872442/1#1 date=1233873232
        This will be a great discussion Phil!

        I think they sign contracts because they want "free" macines, grinders, wind barriers, advertising, crockery, uniforms et al.

        Most of these owners could NOT give a hoot about whats in the cup  
        I tend to agree if the NOT was included in the statement...  

        While I have been a solid supporter of Phils establishment and enjoy the beans and the great service that the  STAFF provide...   :-*

        Not all of the Cafe owners are so passionate...      I was looking for a little place and or a mobile solution some time ago...  100% of all I dealt with, came down to... How they could reduce costs and boost the bottom line...  Some of the tricks with beans and contracted usage etc was mind blowing...    

        I can understand the establishments like Phils, trying to do the best for their company but also their clients and the end consumer...  AND being passionate about it...  8-)

        Problem is the middle man:  as you, the product supplier has little or no control / input...  The genera user just take the poor product and often knows NO BETTER...   There are a number of places selling the Di Bella Coffee products and I would not go to them in a fit..  I would rather Pablo or Aldi instant...

        So who get the  bad press... The cafe or the Roaster ???   :


        code of conduct where this practice was not allowed
        As to this option... A start... But who will and can enforce it ?  

        TG could be a roving Auditor ??

        Regards Electronically

        AM


        Comment


        • #5
          Re: Why Do Cafe Owners Sign Coffee Supply Contracts

          Originally posted by 0F20292B3C032F202F292B232B203A4E0 link=1233872442/3#3 date=1233874548
          So who get thebad press... The cafe or the Roaster ???
          Not sure if Im going to get too OT here, but bear with me

          I remember reading a similar discussion on HB recently. In my early snobbery days, it pains me to admit that if I saw a Tobys sign outside of a cafe I would automatically assume it was good.

          While the boutique roasters cant provide machines under contract to compete with the big commercial players, I believe they could add value by including x hours of training per month. Maybe it just isnt feasible, but if they are providing coffee to a cafe, then as you mentioned it is their name on the line. Surely its in their best interest to make sure that their coffee is being served to an adequate standard?

          Grant

          Comment


          • #6
            Re: Why Do Cafe Owners Sign Coffee Supply Contracts

            Originally posted by 25312A2D24261C2734262F2F2631430 link=1233872442/4#4 date=1233876246
            Originally posted by 0F20292B3C032F202F292B232B203A4E0 link=1233872442/3#3 date=1233874548
            So who get thebad press... The cafe or the Roaster ???  
            Not sure if Im going to get too OT here, but bear with me

            I remember reading a similar discussion on HB recently. In my early snobbery days, it pains me to admit that if I saw a Tobys sign outside of a cafe I would automatically assume it was good.

            While the boutique roasters cant provide machines under contract to compete with the big commercial players, I believe they could add value by including x hours of training per month. Maybe it just isnt feasible, but if they are providing coffee to a cafe, then as you mentioned it is their name on the line. Surely its in their best interest to make sure that their coffee is being served to an adequate standard?

            Grant
            I agree, but think were both OT  ;D

            1: The principle and the intent of  "Coffee Supply Contracts" I believe is good for all parties... Yes there are Pros and Cons.

            2:  Supply contracts are an every day event in all facets of business....  Even health and Government      


            The devil is in the detail, and that to be is where a Code of  Conduct come into its place...  With out going into all the detail, as my Government Procurement experience is causing brain cell destruction and excitation......

            As soon as you enter into a  Contract (AS4000 etc)  there are all sorts of legal issues that can get one bogged down...  KPIs and other performance and Quality can be written in, but it can get messy and seen as Over the Top by the little man...  He wants Quick and Simple...

            With a CoC in place, it means that a standard supply contract can reference any number of points, KPIs, expected outcomes and even penalties..    And importantly reduce the need or expense of havening a solicitor spend excessive time reviewing different contract and  T&Cs all the time..

            Will it happen next month or this year... I think not, but believe it should be on teh agenda...  As one of the most traded products etc.. It should not be left in the dark.  Or may be, some would rather have it that way!!!!

            Comment


            • #7
              Re: Why Do Cafe Owners Sign Coffee Supply Contracts

              Originally posted by 7B6F74737A7842796A787171786F1D0 link=1233872442/4#4 date=1233876246
              Originally posted by 0F20292B3C032F202F292B232B203A4E0 link=1233872442/3#3 date=1233874548
              So who get thebad press... The cafe or the Roaster ???  
              Not sure if Im going to get too OT here, but bear with me

              I remember reading a similar discussion on HB recently. In my early snobbery days, it pains me to admit that if I saw a Tobys sign outside of a cafe I would automatically assume it was good.

              While the boutique roasters cant provide machines under contract to compete with the big commercial players, I believe they could add value by including x hours of training per month. Maybe it just isnt feasible, but if they are providing coffee to a cafe, then as you mentioned it is their name on the line. Surely its in their best interest to make sure that their coffee is being served to an adequate standard?

              Grant
              Good idea Grant....Only problem is that the dodgy guys usually reckon they have it all 100% and therefore dont need training.

              Most of them are simply not willing to commit the time/resources even to allow complimentary training to occur. Bizarre concept. Extract $3 and get a new bum on the seat, or extract $6 because the first cup was so good. Which strategy builds a business? :

              Hopefully, with a growing CS population, there will be more competition, forcing them to step up or go broke

              2mcm

              Comment


              • #8
                Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                Originally posted by 336C746269626E676764646C606F010 link=1233872442/6#6 date=1233877252
                Good idea Grant....Only problem is that the dodgy guys usually reckon they have it all 100% and therefore dont need training.
                Fair point - it takes two to tango

                Grant

                Comment


                • #9
                  Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                  Sorry but this discussion is totally misplaced in a retail coffee special interest forum and is nothing more than a stir up.

                  The reason is simple. Business people whether they be cafe owners or their suppliers do whatever they need to do to run their businesses.

                  Its a free country.

                  Retail coffee drinkers can sort themselves out as to where they buy their favourite cuppa, and whether they get a good cuppa or not has nothing to do with coffee equipment supply contracts, it has to do with whether a cafe owner is a good operator or not.

                  Plus there is no accounting for peoples tastes and one mans nirvana is another mans garbage so whether a cafes resulting cuppa is actually technically good or not is irrelevant....some of the best turnover cafes produce the worst brews....so what, they are successful businesses and both cafe owner and supplier are happy. And apparently, so are their clients. There IS no accounting for taste.

                  Coffee Equipment Supply Contracts and whether thay are a good thing or not is only of importance to coffee suppliers trying to knock off someone elses client and many of whom will sabotage a perfectly good relationship between a cafe and his supplier, by trying to lay the seeds of doubt over so called coffee quality or consistency, but where usually the people behind the coffee machine cant even adjust their own grinder, yet when they think something may be wrong with their wet brew, they wanna blame their supplier instead of trying to work out where the problem really lies and mostly, it is in what they are doing.








                  Comment


                  • #10
                    Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                    Originally posted by 47666D6A70494E030 link=1233872442/8#8 date=1233878947
                    Sorry but this discussion is totally misplaced in a retail coffee special interest forum and is nothing more than a stir up.
                    Denis,

                    Cant say I agree with you. This is a coffee lovers discussion forum. While the thread was started by a roaster, and may be perceived as a "woe is me, I want more people to buy my coffee" by some people there is nothing wrong with a healthy discussion. I havent seen any cafes bad mouthed, nor have I seen particular coffee wholesalers mentioned and slurred.

                    Originally posted by 47666D6A70494E030 link=1233872442/8#8 date=1233878947
                    Coffee Equipment Supply Contracts and whether thay are a good thing or not is only of importance to coffee suppliers trying to knock off someone elses client and many of whom will sabotage a perfectly good relationship between a cafe and his supplier, by trying to lay the seeds of doubt over so called coffee quality or consistency, but where usually the people behind the coffee machine cant even adjust their own grinder, yet when they think something may be wrong with their wet brew, they wanna blame their supplier instead of trying to work out where the problem really lies and mostly, it is in what they are doing.
                    Do you work for a wholesaler...? Cause this sounds like youre taking the thread somewhat personally.

                    Ive noticed a trend on this forum from newcomers.

                    First post: Which machine should I buy.
                    Response: Variable

                    Second post: I bought xxx like you said, but there is no crema and I cant get a good taste regardless of what I do with my grind.
                    Response: Are you using fresh beans?

                    Why is the "fresh beans" answer applicable to home users but not cafes?

                    Originally posted by 47666D6A70494E030 link=1233872442/8#8 date=1233878947
                    there is no accounting for peoples tastes
                    This I can agree with.

                    Grant

                    Comment


                    • #11
                      Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                      From a business point of view, the reason for making coffee for customers is to make money. thats it. If enough people buy crappy coffee and are fine with it, its not worth spending the time, effort and money to get better results for the few coffeesnobs who go to a cafe.
                      Most people dont appreciate a good coffee anyway, and while they can tell the difference in side-by-side comparisons, thats not how coffee purchasing is done. If the coffee is OK, and made OK, most customers are happy. Theres always the market for niche quality providers, but consider all the people on this forum who may appreciate a really good coffee, and how many no longer visit cafes regularly because they have their home setup. Most of the time, its convenience, and acceptable level of quality, and a decent price that determines the sale, not just a spectacular coffee.

                      Comment


                      • #12
                        Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                        thanks guys for your feeback so far... let me post the following...

                        Yes Di Bella is a healthy business... but this forum is not about more business... this is about freedom of choice.... i give my clients the same choice... and in many instances pull the product if they have no interest in quality... as you can appreciate, and i am happy to state... not all our outlets will make great coffee, if only... for many reasons...

                        Again this is not a commercial discussion, but rather a general interest one where i would like to personally see a code of conduct in place in the coffee industry... why should people be bullied into purchasing product they no longer believe in...

                        I therefore seek the response, opinons and discussion of ALL people in whether they think that a code of conduct would be appropriate....

                        Comment


                        • #13
                          Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                          The obvious answer is
                          If the prospective client is happy with the deal then go with it
                          However an emphasis must be placed in contract format to ensure both parties adhere to a set of standards

                          Just one example
                          For the supplier e.g. coffee will be freshly roasted and despatched

                          For the cafe e.g. coffee will consumed within 5 weeks of roast date.
                          If not consumed the remainder of beans are to be disposed

                          I am in favour of the saying that it takes 2 to tango
                          And its in the both parties interests to follow easy guidelines dancing together to make profit together.

                          Not only will they both profit but by doing so the customer is also the winner

                          There are other inclusions such as training, storage, stock control ect but you get the idea of my thoughts

                          Breach of the set standards
                          Should one party break the rules the other can withdraw from the contract

                          KK



                          Edit
                          My wife works for an organisation that has a secret shopper program
                          The supliers can also have such a program to check on the cafes
                          After all its there reputation that is also at stake

                          Comment


                          • #14
                            Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                            Originally posted by 153813343D3D30510 link=1233872442/11#11 date=1233882035
                            thanks guys (and gals) for your feeback so far... let me post the following...

                            Yes Di Bella is a healthy business... but this forum is not about more business... this is about freedom of choice....

                            1:i give my clients the same choice... and in many instances pull the product if they have no interest in quality... as you can appreciate, and i am happy to state... not all our outlets will make great coffee, if only... for many reasons...

                            2: Again this is not a commercial discussion, but rather a general interest one where i would like to personally see a code of conduct in place in the coffee industry... why should people be bullied into purchasing product they no longer believe in...

                            3: I therefore seek the response, opinons and discussion of ALL people in whether they think that a code of conduct would be appropriate....
                            Sorry, had to edit your post  ;D    (and Gals)

                            Item 1:  Quality outcome, is an issue and for many reasons is not straight forward, but interesting to hear that you do / have taken action.

                            Item 2: As an end user / consumer - I agree.  Exit requirements must be available to both parties.

                            Item 3:  As you have seen already..  This is an interesting topic... Politics, Personal views and Passion.   The 3  Ps, always make for touchy txt and e-mail / postings...  

                            So I can only recommend that all, consider their responses B4 firing off a reply...

                            Remember "Challenge the ideas, not the person".



                            Comment


                            • #15
                              Re: Why Do Cafe Owners Sign Coffee Supply Contracts

                              thanks kk... your contribution is noted.... i agree with your comments...

                              a code of conduct would ensure that it is two sided..... to ensure that both parties benefit.... a supplier must cover its cost... but must also be accountable for quality product, service, training etc etc.. if it does not provide this then the cafe owner should be able to choose another company.....

                              as to if the cafe breaches its protocol on quality coffee being served to the consumer.... if they breach this then the supplier should be able to stop supply...

                              that is why i would call it a code of conduct rather than a contract... the obligation lies with both parties with the coffee drinker being the winner.....

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