Office Coffee Service Profitability

By: Jimmy Ingram Click author's name for more of his/her articles

Offices equipped with OCS in the past offered their visitors coffee, soft drinks or water, more times than not they chose the second two. Why? Because the brewers and coffee OCS operators offer now is very close to the coffees fancy coffee cafes serve.

Office coffee companies have really struggled to survive as their suppliers labored to keep up, and the distributors and manufactures of brewers were working overtime to come up with technology that could produce a frothy cup of coffee instead of the same old hot, colored water they were calling coffee at that time. Office coffee brewing technology have come a long way, different sizes, colors, and they brew several diverse varieties.

A popular vending industry magazine recently reported that the OCS turnaround was complete in 2004 and that OCS vendors had raised revenue to $3.925 per person, per month, an all-time high. They also report that in the last 12- month time period there has been a five percent rise in sales and that foodservice coffee experienced a compounded twelve-month growth of 15.2% over the past five years.

OCS operators now know that single-cup brewers are essential to grow their business.These brewers deliver a single, fresh cup of coffee from a pod or cartridge without the old, stale coffee taste. These pods are not low-priced for the user but compared to coffee cafe prices they are a real bargain and create zero waste for the organization that is providing hot beverages for their employees and visitors.

OCS operators face the constant problem of capital infussion for new equipment; therefore when they make this investment they need to raise their prices.Aticull-line vending companies, music, video, gaming and amusement companies are usually very slow to reinvest in new equipment. Office coffee providers, the same as vending providers, have set aside a small segment (usually 10% or less) of their yearly budget to invest in new equipment. This makes it very tempting to stick with the old style Bunn coffee equipment, or to buy used and rebuilt equipment and to take advantage of manufactures and distributors that are giving deep reductions on this type of equipment, rather than paying more to move into the new methods of service. A huge segment of providers from all segments of the industries make this error. Therefore, growth patterns, coupled with competive providers growth patterns, slow the overall growth of their unique industry. Completive OCS providers that see the value in branding their company's name by offering the newest and most up-to-date equipment and products.

Branding is a key factor for success for OCS operators. A large shortfalls that office coffee service companies face is figuring out how to brand their company and products. Most providers know that branding stops with their logo, not true! It's true that the first impression that a company and products and its employees make is essential. However, branding spreads through your company and products like coffee spilled on a nice suite; it is much more than just a name or logo!

Reference: Vending Times - A popular vending industry magazine - Vending Machine - Vending Business -Vending Service

Copyright (c) 2009 Jimmy Ingram

Article Source: ABC Article Directory

About The Author: Jimmy Ingram has written 20-books on his business experiences and solutions; he has created and owned 25-bookstores/12-restaurants/nightclubs/2-large vending routes/vending management company & consulting company, his books are sold on ebusinessmediaonline.com