What’s a simple, easy way to keep employees happy and productive? You guessed it — coffee.
Citing its performance-improving qualities, low cost, and ability to boost morale, Business Insider listed coffee as the one perk employers must splurge on.
For companies in the office coffee service sector, convincing employers that coffee is not just a nice perk — but a real necessity — represents a huge selling opportunity.
In this blog post, we’ll take a closer look at the market potential for office coffee, discuss selling points to win over reluctant employers, and explore possible areas for growth.
Uncovering the Market for Office Coffee
The target market for office coffee is very large. According to a recent report by Packaged Facts, a provider of authoritative consumer market research, 86 percent of full-time workers drink coffee in the U.S. Most of these workers consume coffee on a daily basis during work hours.
Although a vast majority of employees drink coffee, less than half of office coffee is employer funded. For pod/k-cup coffee, the rates are even lower. Converting more employers into coffee buyers could provide significant room for growth.
However, several challenges still exist in the office coffee service market, including lagging employment figures among small businesses. Smaller companies are a significant source of revenue, and until employment rates increase among firms with fewer than 500 employees, the market for office coffee will continue to be held back. After all, each additional employee a firm hires represents another coffee drinker — and another sales target.
In addition, as more and more workers telecommute, fewer onsite workers will be around to consume office coffee. This trend represents a significant threat to future growth in this market.
Selling Points for Employer-Provided Coffee
Although some challenges persist in the office coffee service sector, exciting opportunities for growth abound. There are many compelling arguments to be made in favor of employer-provided coffee. Consider the following:
- Coffee improves worker productivity. Researchers have found that coffee helps to improve memory and concentration. Coffee also helps to reduce the number of errors made by workers, making it a go-to option for enhancing productivity.
- Coffee helps employees feel valued. Lowering turnover and retaining high-performing employees is a key priority for many companies. Providing coffee in the office is one tangible way companies can show their employees that they appreciate them and recognize their hard work. This can boost office morale and contribute to a more positive work environment.
- Coffee keeps employees on site. If employees run to Starbucks to buy coffee as a mid-afternoon break, they spend less time at their desks working. Compare the time difference between stepping into the office kitchen to brew a cup of coffee versus hopping in your car for a trip to the store. The time spent away from your desk can add up quickly, translating into significant losses for employers. Buying coffee for the office may be an insignificant cost in comparison to the overall productivity employers stand to lose by not providing it.
Moving Beyond Coffee
For office coffee service providers, other offerings beyond coffee could provide additional opportunities for growth. Many corporations are adopting workplace wellness programs in an effort to keep down healthcare costs and reduce absenteeism. These employers may be ideal sales opportunities for other products besides coffee, such as bottled water and tea.
Coffee can be a win-win for employers and employees alike. It’s a small perk with a big impact — and that is a powerful selling proposition for the office coffee service market.
Where to Learn More
Buy the full report Office Coffee Service in the U.S.: Market Trends and Opportunities, 2nd Edition on the Packaged Facts website.
For a quick overview of food and beverage trends, download a free PDF by Packaged Facts, which includes key research highlights and consumer survey results from 2017.