With the business landscape in a constant state of evolution, brands must prioritize an omnichannel approach to generate consistent revenue growth.
Today, brands have more resources than ever before to advance overall performance. One of the most often overlooked but immensely valuable revenue streams is retail.
As a franchise-first brand, each decision we make at Bad Ass Coffee of Hawaii is done so with our franchisee’s best interest in mind. In looking at how we could build off the brand recognition we’ve created, while introducing new people to our brand, we unveiled an undeniable truth of the power of retail.
In prioritizing a strategy to grow Bad Ass Coffee’s retail offerings, our profitability has reached new heights. We saw the base of our core customers grow which created buzzing conversations of the brand. This, in turn, created an increased demand for our product – both in-store and online. Now, merchandise makes up over 8% of systemwide sales, with the top 1/3 of the system over 11% in total sales.
Bottom line, the power of retail offerings should not be overlooked. Here are three key findings franchise brands can tap into that can help unlock revenue growth.
Prioritize the Ambience of Your Store Design
Regardless of your company, whether you’re a fitness concept or a QSR brand, it’s important to carefully evaluate how you can capitalize off the appearance of your space.
A well-designed layout guides customers through the store, highlighting featured products and encouraging exploration. Thoughtful lighting can set the mood and draw attention to key areas, while decor, such as color schemes, textures, and visual displays, should reflect your brand’s identity and resonate with your target audience. An impressive design and layout can transform the customer experience, and in turn, boost sales.
For example, all of Bad Ass Coffee locations are designed intentionally while paying homage to our Hawaiian culture. When you walk through our doors, you’re greeted with an “aloha.” Each location captures the true essence of the island – from the blues and greens that symbolize the land and water, to the music selection we play over the speakers. Channeling the aloha spirit in our stores’ atmospheres furthers our mission of allowing customers to fuel their inner bad ass. This helps drive overall customer engagement.
In creating an appealing ambience, you’re providing your consumers with an experience, rather than a quick exchange of goods, which can lead to an increase in overall sales.
Amplify Brand Awareness Through Branded Merchandise
Branded merchandise is a dynamic strategy to elevate brand awareness, strengthen customer loyalty, and introduce your brand to new consumers. Harness this potential by developing individualized merchandise as well as an array of products that align with your core brand identity.
Thoughtfully-curated and quality merchandise resonates in the minds of consumers, and is a chance to tell your brand’s story in a way that is creative and trendy. By investing in this branch of your business, you’re committing to expanding your customer reach. You don’t only increase your revenue through the branded merchandise itself, but it also serves as a powerful tool in growing brand awareness.
At the heart of Bad Ass Coffee is the legend of the donkey which lives on through our name, premium coffee, and merchandise. You’ll find the iconic donkey on many of our shirts, keychains, coffee mugs, etc. Beyond our brand name, individuals have grown to recognize the donkey and resonate with the story behind it – legend has it that for generations, donkeys could be heard bellowing as they carried precious loads of coffee beans down the steep mountains of the Big Island. The people of Kona named these hard-working donkeys the “Bad Ass Ones” because of their reliably strong, but stubborn nature in carrying their precious cargo. People are drawn to both the meaningful narrative and the uniqueness of the design.
Optimize Product Assortment
A key pathway to enhancing revenue growth within a business is the optimization of product assortment. This is a multi-faceted process that begins and ends with decision-making and strategic selection.
By identifying and prioritizing the most popular and profitable merchandise, you’re able to align your offerings with customer preferences. Furthermore, this ensures your inventory caters to the wants and needs of your consumers.
For our brand, we don’t shy away from offering an assortment of merchandise – from shirts and glasses, to tote bags and stickers, to our whole or grounded coffee beans. We know some people want a coffee mug that they can enjoy sipping their favorite roast out of while others want to sport favorite coffee brand in their everyday life on a t-shirt or hat. This has helped us build a following and increase our brand’s visibility.
Regularly review sales data and customer feedback to adjust your product assortment, eliminating underperforming items and focusing on what resonates with your clientele. By constantly refining your offerings to meet customer demands and maintaining a balance between classics and innovation, you can optimize your product assortment and drive retail revenue effectively.
Bad Ass Coffee of Hawaii serves as a testament to the progressive potential of prioritizing retail. From capitalizing on your store design to amplifying brand awareness through merchandise, franchise brands can tap into a new or refreshed strategy for revenue.
