News Blast
To Increase Profits and Satisfy Consumers….. Improve your Iced Tea
This just in: the soda business is in hot water. According to the National Restaurant Association, fewer people are reaching for sugar-laden drinks such as traditional name-brand sodas. Instead, consumers are opting for a more unique approach, looking towards artisan soft drinks, specialty iced teas, cold brew coffees, and housemade lemonades to quench their thirst. For many restaurateurs, however, gourmet drinks and craft sodas bring with them the possibility of profit loss. Due to their high cost, specialty beverages such as craft sodas and housemade lemonades are sold at higher prices than traditional, mainstream beverages like Coca Cola and Pepsi. If consumers choose tap water foodservice operators lose a very profitable sale.
This shift in consumer mindset arrives at the same time as another pressing issue for foodservice operators: the rising minimum wage. As of 2017, the minimum wage in Los Angeles sits at $10.50 per hour. This increase, while modest, is the first of a series of yearly hikes that will eventually top out at $15 per hour by 2020. By next year alone, the minimum wage will have made a substantial jump to $12 per hour. With the threat of ever-increasing wages, foodservice operators will have little choice but to raise product prices. Foodservice operators are looking at ways to increase profitability while keeping costs in check.
Based on figures from the Tea Association of USA (TeaUSA), the answer may be in the tea leaves. Specialty iced tea sales are on the rise, with many lauding the beverage for its many health benefits and low cost (high profits). According to TeaUSA, Americans consume more than 3.8 billion gallons of tea every year. 85% of the tea consumed annually is iced, with one quarter of Americans drinking iced tea every day. In fact, TeaUSA estimates that roughly four in five consumers drink tea, with 87% of Millennials drinking tea. Furthermore, iced tea remains one of the most economical beverages on the market, with even the most expensive iced teas costing less than 10 cents per serving. For example, if you were to serve an additional five glasses of freshly brewed iced tea per day, priced at $3.50 a glass, you would increase sales by $17.50 per day. That comes out to a whopping additional bottom line profit of $6205 after deducting the costs of those five additional glasses of iced tea per day. This is referred to as “Easy Money” !
Not only is tea both healthy and profitable, it can also provide a variety of taste options for consumers. Many foodservice operators have capitalized on the growing popularity of iced tea by offering traditional black and green teas with other flavors, such as passion fruit, raspberry, and tropical fruits. Luckily, Restaurant Tea Service provides a variety of flavoured and unsweetened teas to satisfy any craving– a perfect high profit option for today’s health-conscious consumer. The accessibility and low cost of the service provided by Restaurant Tea Service makes the risk-to-reward ratio hardly a risk at all. Tea has already stood the test of time. Offering a premium iced is the quickest way to boost bottom-line profits. So don’t miss your chance to leaf the competition behind and launch a quali-tea relationship with Restaurant Tea Service. Reach out to us today to learn more about our iced tea products and how we can brew up the best plan for you.
