The State of the Barista Coffee Business

There are single origins and blends. Is the Australian retail coffee sector waiting for a shake up, more innovation and a less fragmented industry framework?

It is reported there are at least 650 micro coffee roasters for a nation with a population less than that for the greater Tokyo region.

The retail coffee business is said to be only growing at 5 per cent per annum. More players are entering an already crowded field that is crying out from a possible bubble. Some apply social media to enhance marketing and presence in a competitive field.

If you are a barista cafe owner, do you still depend on early morning turnover and the brunch margins? Labour costs make you think twice of offering cuppas at midnight, like they do in Asia. The multi business model of having a licensed bar on your rented premises is attracting customers, but it depends on which market you are operating in.

Coffee beans are a commodity in world trade and are subject to the vagaries and volatility of supply and prices. The question of minimum pay for workers in cafes, especially those working part time and on a casual basis, can raise its ugly head. For the business operator, there is a constant and hawkish need to monitor margins and costs.

It can be said that if you do well in three important things at your cafe, your regular customers can be relied upon. Your coffee has to stand out in bean taste, espresso texture, coffee varietal, body, serving temperature, crema consistency and roast freshness. You need to have an addictive food item, savoury or sweet, on your cafe display shelf or menu. And you need one engaging personality based in your cafe to close the deal.

Running workshops on creating coffees, holding community catch ups and offering different styles for cold and warm weather are useful options, but require resources with which sole proprietors can ill afford.

The strength of the barista business can be its weakness. 

We love the fact that many in the coffee business at street level can shape their own parameters - unique, focused, hipster or down to earth.

Having coffee can be like in the perfume business - reflect on the aroma, the elegance, the reliability, the special moment. Once a particular offering captivates you, you as a customer will return for more.

At the same time, how a barista prepares
from the same blend (say Campos or White Horse) can result in different nuances on the tongue. This also echoes the different skills in making the cuppa.

It has been beneficial for serious coffee lovers in Australia for the market to break away from straitlaced processed coffee from the supermarkets, commercial fast food like chains and bland ground bean blends. The significant influence and inspiration from Italian espresso making is much appreciated. 

Are consumers tending towards consuming more bold coffee on a daily basis? Will there be more negative health pronouncements
for your customers having their fourth cup for a single day? Is there an opportunity for more cooperation by the disparate spectrum of players?

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