What could be possibly better than running a coffee subscription business? Perhaps…having a coffee subscription business run for you!
Working at home wasn’t an option when the pandemic hit; it was necessary.
People were used to waking up early, catching a cup of coffee on their way to work, and filling their office mugs multiple times during the day. And then, well, everything changed.
Are you selling coffee? Ever considered selling subscriptions?
We believe you’re ready to sell not only a product, but an experience; a routine, and a lifestyle and here is a complete guide to run a coffee subscription business and also some coffee subscription business ideas. And today, Subify is here to help you have a subscription business that runs itself!
How Can a Coffee Subscription Business Benefit You?
The coffee culture is amazing and always evolving. These days, we see that grabbing a bag of beans from the local store has transformed into something more special—the coffee subscription. Fueled by the comforting aroma of freshly brewed coffee, this trend has skyrocketed, especially in the face of recent challenges. The worldwide coffee subscription market is anticipated to increase at a 10.9% annual compound growth rate (CAGR) from USD 628.7 million in 2021 to USD 1,565.3 million by 2030, according to a research by Polaris Market Research.
This increase isn’t simply a transitory subscription trend; rather, it’s evidence of the subscription model’s enduring popularity and strategic benefits. We’ll investigate the benefits that make coffee subscriptions popular with both sellers and consumers of coffee throughout this journey. Let’s explore the reasons for the rise in popularity of coffee subscriptions in today’s coffee industry, from cost savings for roasters to personalized and effortless coffee pleasure.
1. Explosive Growth in Coffee Subscription Market
Subscription box business plans for coffee have witnessed remarkable growth, especially during the pandemic, with consumers seeking to recreate the cafe experience at home. Over the past five years (2017-2021), the market for coffee subscriptions has expanded at an impressive compound annual growth rate of 11.5%.
2. Convenience and Personalization for Subscribers
Coffee subscription services offer a convenient and personalized experience for subscribers. Tailored plans allow customers to receive their favorite coffee blends regularly without the hassle of reordering, ensuring a seamless coffee experience at home.
3. Flexibility for Coffee Shop Owners
A standard coffee subscription plan provides coffee shop owners with flexibility in selling directly to customers. This direct-to-consumer approach allows for better control over inventory and a more personalized interaction with the customer base.
4. Bulk Roasting Cost Savings
Roasters can benefit from cost savings by employing bulk roasting instead of per-unit roasting with a standard coffee subscription program. This strategy reduces roasting costs, making it a financially efficient option for coffee roasters participating in subscription models.
5. Risk Mitigation for Providers
For coffee providers, subscription models guarantee upcoming purchases, mitigating the risk of excess stock left on shelves. This reliability ensures a steady and predictable revenue stream for the business and contributes to long-term sustainability.
6. Subscriber Discounts and Rewards
Subscribers enjoy exclusive benefits, such as discounts and rewards, for their loyalty to the coffee subscription service. These incentives not only foster customer loyalty but also contribute to a sense of appreciation for those who commit to regular purchases.
7. Fresher Coffee Delivered Promptly
Subscribers can enjoy the freshness of their coffee, as most coffee subscription services ensure that the beans reach customers within a few days of roasting. This commitment to freshness enhances the overall coffee experience, setting subscription services apart from traditional retail options.
9. Customization Options:
Many coffee subscription platforms allow customers to customize their orders based on grind size, flavor preferences, and brewing methods. This level of customization ensures that subscribers receive coffee tailored to their specific tastes and brewing equipment.
Starting a Coffee Subscription Business in 5 Steps
Ready to turn your passion for coffee into a thriving business? In this section, we break down the essential steps to launch your very own coffee subscription service. Whether you’re a seasoned roaster, a coffee enthusiast, or an aspiring entrepreneur, these straightforward tips will guide you through the process. From choosing your coffee theme and deciding on grinding preferences to bag sizes, packaging, and delivery frequencies, we’ve got you covered. So, grab your favorite cup of coffee, and let’s see how to start a coffee subscription business. It’s time to bring your unique blend to coffee lovers everywhere!
1. Choose Your Coffee Theme
Launching a coffee subscription business begins with deciding on your theme. Are you into single-origin coffee, specific drink types, iced coffee, or perhaps coffee makers? Driftaway Coffee, for instance, offers a tasting kit to tailor your subscription based on fruity, classic, balanced, or bold flavors. Make sure your theme aligns with current coffee trends and customer preferences.
2. Grind It Right
Consider the grinding aspect—decide if you’ll grind the coffee or leave it to customers. Ground coffee is convenient for those without a grinder, but it has a shorter optimal quality span. Whole beans are ideal for serious coffee enthusiasts. Ideally, offer both options to cater to diverse customer preferences.
3. Bag Size Matters
Choose the right size for your coffee bags. Consider the daily coffee habits of your customers. While 16-ounce bags might suit those drinking multiple cups a day, 12-ounce bags may be perfect for casual coffee drinkers. Run surveys or gather feedback to make an informed decision.
4. Perfect Your Packaging
Packaging is crucial for leaving a lasting impression. Ensure your boxes, measurements, design, and printing methods align with your brand. A great packaging design not only attracts customers but also preserves the freshness of your coffee. Choose materials that protect your beans during their journey and consider environmental factors, such as compostable packaging.
5. Set Your Delivery Frequency
Monthly plans are a common starting point for coffee subscriptions, offering a proven delivery system. As your business grows, consider adding weekly or biweekly options. Provide flexible delivery frequencies within the limits of your shipping and inventory capabilities. Platforms like Subify can assist in managing and updating subscription details seamlessly. Efficient delivery systems are key to a successful coffee subscription business.
Coffee Subscription Ideas to Win the Competition
Whether you’re envisioning seasonal sips, DIY barista kits, or pairing coffee with artisan treats, these concepts promise to transform the coffee-drinking routine into an exciting and personalized experience. Ask yourself: How do coffee subscriptions work? Then add creativity to your coffee subscription program to stay ahead of the competitors. Keep reading for coffee subscription ideas that can help you grow your customer base and win the game in the market.
1. Adventurous Bean Exploration
Take subscribers on a monthly journey by curating unique coffee beans from different corners of the world. Explore the distinct flavors, aromas, and stories behind each bean, allowing coffee enthusiasts to broaden their coffee horizons.
2. Seasonal Sips Delight
Craft a subscription that follows the seasons, offering exclusive blends inspired by the time of year. From cozy winter brews to refreshing summer blends, this approach keeps the coffee experience dynamic and aligned with changing preferences.
3. DIY Barista Kits
Transform subscribers into home baristas with curated kits that include not just coffee but also tools for brewing. Equip them with the essentials, like a quality grinder, unique brewing methods, and fun accessories. In this way, you can turn every cup into a personalized brewing adventure.
4. Coffee and Treat Pairings
When you pair each coffee option with delicious goodies, you may elevate the coffee experience even more. Create delicious combinations that complement the flavor profile of each coffee. Gourmet cookies and handcrafted chocolates can be good starters to make every delivery a wonderful surprise.
5. Local Roaster Spotlight
By highlighting a different local coffee roaster every month, you can raise awareness of these businesses. Display the wide range of skills provided by local coffee artists and enable subscribers to appreciate and support the distinctive characteristics of their community’s coffee scene.
6. Limited Edition Blends
Offer subscribers-only limited edition mixes to create a sense of exclusivity. These limited edition offerings provide subscribers a taste of something genuinely exceptional. They may be based on rare beans, unique processing techniques, or experimental flavor profiles.
5 Successful Coffee Subscription Businesses
We’re diving into five awesome coffee subscriptions that bring a fresh vibe to your daily cup. From guessing your coffee flavor to traveling the world through your mug, these companies make coffee more exciting with their creative coffee subscription business model. We’ll check out Angel’s Cup, Atlas Coffee Club, Bean Box Coffee, Equator Coffee, and Fire Department Coffee. Each one has a special twist that makes your coffee experience extra awesome. Let’s see how these coffee pros shake things up and make your coffee routine way more fun!
1. Angel’s Cup: The Blind Tasting Experience
Angel’s Cup uses an innovative method called blind taste testing to transform the coffee subscription business. Coffee is delivered in plain bags to encourage customers to enjoy each cup without thinking about it beforehand.
The identity of the coffee is revealed by the app only after the decision. For those who want to experience the thrill of tasting various coffees without bias, this membership is ideal. Angel’s Cup provides a really customized coffee experience with options for bean blend, grind level, and delivery frequency.
2. Atlas Coffee Club: Globetrotting Through Coffee
With coffee beans from all across the world, Atlas Coffee Club offers members a worldwide coffee experience. Atlas has mastered the onboarding process and skillfully leads clients through customization without becoming excessively demanding. Coffee preferences, such as type, roast, grind, and bag size, can be customized by subscribers. It is a unique coffee subscription service because of the brand’s powerful messaging, simple onboarding process, and guarantee of receiving coffee and postcards from all around the world.
3. Bean Box Coffee: Seattle Tech and Coffee Culture Blend
Seattle’s digital culture gave rise to Bean Box Coffee, which mixes creativity with a love of coffee. Coffee subscriptions are customizable with six sampling sessions and varying quantity options. The “tasting flight,” which comes with four 1.8-ounce bags of exceptional coffee with the initial subscription, is the highlight. The benefits of Bean Box’s membership include free shipping, the ability to stop or resume at any time, and an extensive range of coffee options that will satisfy a variety of tastes.
4. Equator Coffee: Variety and Quality in Every Sip
Equator Coffee is unique because it provides more than thirty different types of coffee. Within certain categories, subscribers may select their favorites or allow curators to alternate their carefully selected choices. Equator Coffee is an appealing choice for anyone looking for diversity without sacrificing quality because of its distinctive and premium tastes, as well as its generous 30% off and free delivery offer on the first subscription order.
5. Fire Department Coffee: Brewing a Story
In addition to selling coffee, Fire Department Coffee tells an exciting story under the leadership of a group of retired and current firefighters. Together with eye-catching packaging, the brand’s story establishes a unique identity. Users choose their preferred bean, length of membership, and subscription type through an easy three-step onboarding procedure. Additional benefits, including free delivery and discounts, encourage brand loyalty and assist the firemen who grow the beans by making subscribing a more attractive alternative than making one-time purchases.
Other Coffee Subscription Business Examples
If you’re a coffee-lover, you’ve probably heard of Driftaway Coffee. Run by Anu and Suyog, Driftaway Coffee started the coffee subscription business in 2012. Despite doubling its sales every year, Suyog highlights March 2020 as their growth curve. Thousands of new subscribers signed up, and more than 15% of previous customers increased the size or frequency of their orders. The pandemic has ever since created a new attitude and a new method of coffee drinking that remained.
According to Bluecart, today, 79% of Americans drink their coffee at home. Drinking coffee has become a routine, a lifestyle. It’s highly demanded and never off-trend.
Conclusion
You don’t need a lot of experience or knowledge to start a coffee subscription business. Especially if you’re already working in the coffee industry. A subscription model can help almost any store, but not every product works well with a monthly delivery service. So why not make the most of this opportunity?
Once you’ve decided what you want to offer, and how you’ll deliver it, it’s time to build the store. Choosing the right Shopify subscription app will help you get even closer to your goals.
It will automate your orders and billings for you and will give a professional look to your brand; a business that runs itself!
Anu Menon & Suyog Mody launched Driftaway Coffee with a team of two. Subify, on the other hand, has a big team of people that will help you get your magical drink to as many customers as possible.
So…what do you think? Your new coworkers are just a click away!
