ANN ARBOR MICH. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Borders operates 507 U.S. bookstores that include 480 cafes, of which 452 are covered by a licensing agreement with Seattle’s Best Coffee, a Starbucks Corp.-owned brand. Sales at those branded cafes began to take off three years ago, when Borders began converting them from its own Borders Cafes brand. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
“It’s a great partnership,” said Chris Nichols, director of cafe operations for Borders. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Seattle’s Best has “culinary expertise,” and “there has been a solid lift in performance,” he said. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Although Nichols declined to divulge comparisons of the same-store sales trends of the cafes before and after their conversion to the Seattle’s Best Coffee format, he said the cafes have become destinations for loyal Borders customers. The average customer spends $4 and stays about an hour, he explained. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Seattle’s Best trains Borders’ employees to run the cafes. Training points include suggestive-selling techniques, such as recommending the pairing of certain treats with specific coffee or tea drinks. The Seattle-based coffee seller employs district managers who are available to Borders for quality control purposes on an ongoing basis. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Bakery items are best sellers on the cafes’ food menus, which also offer several sandwiches, including two breakfast sandwiches and two stuffed pretzels. All food items can be heated behind the counter. Each cafe has a cold case offering bottled water, soft drinks and other items. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Best sellers are brewed coffee, lattes and oversized chocolate chip cookies that can be served warm. Sales “skyrocket” in the summer, Nichols said, and tend to be highest in the afternoon and evening, when customers generally have more time to linger. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Some new products are offered seasonally, he noted. The ColdBrewed Caramel Mocha, for example, will be offered until the end of summer. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Building customer loyalty, particularly through the online Borders Rewards program, which has 19.5 million members, has benefited both book and cafe sales, Nichols said. Several times a year, Rewards customers are offered free cafe items with a purchase. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Other local-store marketing strategies include targeting nearby businesses and increasing cafe visibility in the stores through signage and product sampling. Nichols said office catering is an area his department currently is exploring. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
“Ultimately, our business is an anchor and a way of getting people into the stores,” Nichols said. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Regarding trying a similar strategy for Waldenbooks, which Borders also owns, Nichols said that possibility had not been ruled out. However, there are no immediate plans to open cafes in Waldenbooks stores. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
The cafes are gathering places for students and laptop computer users and occasionally play host to performances by local musicians. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Seattle’s Best has been pleased with its bookstore relationship, which is its largest cafe licensing contract, said Tom Ehlers, vice president of category management and marketing. “We feel very, very good about our partnership with Borders,” he said. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
Barnes & Noble, Borders’ largest competitor, also operates cafes in most of its 793 bookstores. Those house-brand cafes serve Starbucks Coffee, identified with the Starbucks logo on store windows and behind cafe counters, as well as pastries and sandwiches from various suppliers. Barnes & Noble representatives could not be reached for comment. —Everyone knows that Borders bookstores sell a lot of books, but few book buyers would be expected to know that the stores’ cafes sold $112 million in coffee and treats last year, or about 4 percent of the chain’s total sales.
