Death of a drive-thru? The 2007 best selling hardcover
book titled, The Starbucks Experience, by Joseph A. Michelli makes only
one slight reference to drive-thrus, as it fleshes out the magic behind
creating the kind of welcoming atmosphere customers quickly adopt as
their "third place.".
by LaFlamme, Lon L.^Morris, David J.
Despite the incredible Northwest growth and success of stand alone,
double sided specialty coffee drive-thrus since the late '90s,
Starbucks still only had a proportional handful of coffee houses with
drive-thrus in North America as it entered the 21st-Century.
Finally accepting that America moves at a maddening pace and
specialty coffee is as much a fuel as a medium for social interaction,
Starbucks woke up to customer demands for stop and go service. At a
Starbucks 2002 annual stockholders meeting, company leadership
proclaimed that one of its key growth strategies was to dramatically
boost its number of North American coffee house/drive-thru combinations.
Today it is hard to find a new Starbucks coffee house that
doesn't have a drive-thru window. In The Starbucks Experience,
Michelli states, "By listening to our customers, we recognized the
convenience of drive throughs, and in turn that listening has had a huge
impact on our business."
How then--in all the green coffee beans--in the world, can The
Brand Coaches even suggest that today's drive-thrus face certain
death?
Worse yet, while stand alone double sided drive-thrus once only
multiplied in the Northwest like rabbits in heat, today they are popping
up everywhere from coast-to-coast. Gas station and carwash chains are
even waking up to the jolt in increased sales and profits by dropping a
drive-thru on their properties. To top it off, the hottest and most
active franchise category for specialty coffee is stand-alone
drive-thrus, based on initial investment cost and promise of quick
return on investment.
Have the Wheels Come Off Our Minds?
Not a chance. The (training) wheels are coming off America's
drive-thrus. The evolution of the drive-thru has accelerated from an A
to Z revolution. Bottom line: Dive deep into today's drive-thru
game, or face a certain death. Step up or step out!
Before we look at where the progressive drive-thru chains of today
and tomorrow are rocketing, we need to look at where far too many of
today's drive-thrus are stuck, with few options but radical change,
if they want to survive and thrive.
Space, Space and Less Space
Just a few years ago, and even today with some misguided prefab
small box concepts, it cost less than $50,000 to open your own
drive-thru business. If you think these sad looking little places look
small from the outside, with their tiny little service windows, you
can't imagine what it is like for two baristas (of normal size and
weight) to bang around inside these humble abodes. Just pray that nobody
ate chili for lunch. Speaking of those two baristas, they seldom wore
branded aprons, let alone professional uniform shirts. Menu signage is
either homemade or just above that level of quality and customer impact.
Service windows are plastered with vendor point of sale and handwritten
signs. The service windows are so small they could serve as gun turrets.
There is virtually little room for storage, and much less for a
closet or bathroom. Nevertheless, in the Northwest where the stand-alone
drive-thru was born, the majority of today's drive-thrus
comfortably fit into this behind the curve description. Google
drive-thru franchises on the Internet, and you can still find a number
of franchisors that are luring in franchisees with buildings of little
size and even less architectural character. To quote Vicky and Art
Pedersen, owners of the Northwest-based Cool Bean Drive-thrus, "In
1998 we just threw up a 94-sq. ft. one window drive thru with no running
water or sewer for under $30,000. We had four baristas working in that
space doing daily sales of over $1,000 by the end of the first
month."
Fair enough, that was true less than five years ago in the
Northwestern part of Ohio, how the game has changed today. When it came
to Cool Bean building a second location in 2003, they bit the bullet and
increased the square footage to 325-sq. ft. for a total building,
equipment and land cost nearing $300,000.
"We are watching the little places drop like flies around
us," Olson said. "As each of the little guys disappears, we
are picking up 1-2% revenue. A lot of the small places that were doing
over $800/day are now choking on just over $200/day. You can't pay
the barista and sales tax with that, let alone product costs." When
asked what the Pedersen's growth strategy is, they answered,
"Outlive the small guys. They are dying fast."
Scott Olson, principle at Office Go Architects LLC
(www.officego.com), has specialized in drive-thru design since they
started in the Northwest. Today, Scott's firm designs drive-thrus
for single locations and chains from coast-to-coast.
In merging The Brand Coaches experiences, and the design
firm's mandatory list for today's drive-thrus, we concluded
that you need seven things to have a successful and growing business:
1. Professional Looking/Acting Staff
"Corporate confidence" is what we sum up a potential
customer needs to feel when they see your drive thru. The service staff
has to look and act as friendly, caring and polished as Starbucks.
The seasoned architect underscored that in today's rapidly
maturing drive thru market the design and size of the building must make
a stand out impression beyond maximizing on signage as big as city
ordinance allows. This signature building design must be so distinctive
potential customers would know it was you, even if all the signage was
taken away.
"Sometimes people walk into my office and ask for a drive thru
that will cost around $50,000. Though I don't say it, I am thinking
they should just get the cash out of the bank and use it for fire
starter-get the pain over with quick," Olson said.
2. Big Is Better.
He noted that in the past, drive-thrus were mere converted sheds or
trailers roughly 7' x 10'. To compete today they need to range
from 12' x 26' to 20' x 30.'
Today's building must be self sufficient, providing ample room
for a bathroom, office area, storage and most importantly, two drive-up
windows.
3. Taller and Taller
The majority of the building the architectural firm designs now
average around 2-' tall to the top of the roof, providing bold
visibility from the road. The height of the building can compensate for
highly restrictive signage, a major challenge in branding your building.
4. Quality Building Materials
Today's exterior building materials must be quality with ease
of maintenance. Cedar, for example requires more maintenance than metal
or stucco siding, but may fit the brand positioning. Popular materials
today include stone veneers to upscale the appearance of the building.
5. Large Service Windows
While the customer-barista relationship in a drive-thru ideally
lasts no longer than three minutes, one of the huge keys to creating an
environment conducive to creating bonding relationships is the amount of
clear, unobstructed glass. They should they be as large as possible. The
more the customer can see into their drink being made and maintaining
eye contact with their favorite barista, the faster the bond can be
formed.
6. Professional Menu
If you read our last Brand Coach column, which boldly stated that
the fastest track to increasing daily sales is the creation of a
professional menu with professionally photographed signature drinks.
This seems obvious, but the majority of North American drive-thrus
have poorly designed menu boards with too much small type and no
photographed signature drinks.
7. Perfect Location
As important as the building is, the first step is to find a
quality site. With today's buildings often costing over $150,000,
it is a huge investment that has to also be supported by the perfect
site. Like any commercial venture in today's specialty coffee
marketplace, the site must look great with parking and attractive
landscaping.
Drive-thru 101 requires that the site needs to be on the going to
work side of the road, as it is a 6-10 a.m. peak business. Preferably,
the site is on a corner and absolutely needs easy in and out access. As
far as the drive-thru lanes, there is no perfect design. They inevitably
cross each other at some point. The rule to follow is that they should
be at least 11' wide with a wide turning radius. Allow for three or
more auto-stacking spaces per drive-up window (allow at least
15-20' per car).
Sounds overwhelming and outrageously expensive to enter this
rapidly maturing market segment, ready to compete with Starbucks or
anybody else? Don't let it. Bet on coffee's bullish future and
build it right to ensure a successful and growing business for years to
come.
Lon L. LaFlamme
David J. Morris
Tea & Coffee columnists Lon and David provide brand and profit
building consultation to a number of coffee, retail and b2b businesses
across North America. For more information on the Brand Coaches go to:
www.thebrandcoaches.com
COPYRIGHT 2007 Lockwood Trade Journal Co.,
Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.