Fast food is one of the most competitive segments of the food service industry. With low margins on the main menu, one of the most effective ways to increase revenue is by adding high-margin items to the menu, such as coffee and tea. These drinks are consistently popular with customers and, when properly managed, can significantly increase the average bill and overall profit.
Features and challenges of fast food projects
Fast food is a unique business that demands specific conditions. Success requires high-speed service, strict adherence to quality standards, and a constant flow of customers. The margin on each item is low and is only offset by high sales volume. A good location (high footfall) and the ability to intelligently increase the average order value through upselling can improve profitability and profitability.
food formats : from kiosk to chain
Fast food today comes in a variety of formats. Understanding your format helps you build the right business model and product offering:
- Classic fast food restaurants. Freestanding establishments or food court locations where guests order at the counter. These are typically well-known chains or independent quick-service cafes. They have a small dining area and are designed to accommodate high customer traffic.
- Street kiosks and pavilions.Small retail outlets (shawarma stands, hot dog stands, bakery and coffee stands, etc.) offering takeout. The space is minimal, the menu is pared down to the most popular items, and the emphasis is on a prime location. This format requires only a compact set of equipment—for example, a meat grill and a simple coffee machine. This allows for a low investment start-up and a rapid return on investment.
- Mobile food trucks.Restaurants on wheels that can change locations. Food trucks can serve city events, festivals, or simply park in busy areas. The advantage is low space rental costs and flexibility: you can go wherever your customers are. Food trucks often also offer coffee and other beverages on their menus to boost revenue.
Each format has its own nuances, but they all share a focus on fast service and high turnover. Regardless of your business format, finding additional sources of income is always important. Developing a coffee and tea business could be one such source.
Coffee and tea as profit drivers in fast food
Adding coffee and tea to a fast food menu can significantly improve financial performance. Let’s consider why these drinks are so attractive from a fast food business perspective:
- High Beverage Margins.Hot coffee and tea-based drinks are among the highest-margin products in the food service industry. According to research, the markup on coffee drinks ranges from 100% to 300% depending on the establishment format. And the average markup on tea reaches 323%. Simply put, the cost of a single cappuccino or cup of tea is several times lower than the selling price. This is precisely why selling such drinks is so profitable: each coffee sold brings in significantly more profit than, say, a burger or a serving of fries.
- Increase the average order value through upselling .Coffee and tea are easily offered as complementary items to a main order. Many customers will happily order a fragrant latte with their sandwich or tea with their pizza—you just need to remind them of the option. Experts note that selling high-margin items—such as drinks and desserts—significantly increases a business’s overall margins. Furthermore, having a drink menu allows for combo packages(such as a “lunch + drink” combo), which encourages customers to order more.
- Attracting morning and afternoon customers.Most fast food businesses experience a surge of customers during lunch and evening hours, but morning traffic is typically lower. Coffee can attract morning customers who stop in for a quick cup of refreshing coffee to go. If you have good coffee, you can generate additional revenue from those who pick up a coffee to go on their way to work between 8 and 11 a.m.The same applies to daytime “coffee breaks”—people might stop in for a coffee or tea with a small pastry rather than a meal. Thus, beverages help leverage new times of day for sales, reducing the dependence of revenue on the lunch hour alone.
- Wide audience and loyalty.Not everyone eats fast food every day, but many drink at least one cup of coffee or tea daily. By offering high-quality coffee and a good selection of teas, you reach a wider audience. For example, a driver who wasn’t planning on buying food might stop for coffee at a gas station; a student might pick up tea on the way to class. Furthermore, if customers enjoy your signature coffee, they’ll return for it regularly—even if they don’t always buy food. This builds loyalty: a delicious drink becomes associated with your brand, increasing its value in the eyes of consumers.
- Minimal additional costs.If a restaurant’s kitchen is already functioning, launching a coffee and tea service won’t require a huge investment compared to adding a new category of dishes. The key is to purchase or rent equipment once and establish a stable supply. Subsequently, raw material costs (coffee, tea, milk, and cups) will be relatively low, and the profit per cup will be high. These ingredients also have a longer shelf life than many other products, simplifying operations and reducing the risk of write-offs.
It’s important to note that the success of a coffee and tea business depends on quality. Today’s customers have become more discerning: simple instant coffee from a bag no longer impresses. But if you offer coffee that tastes just as good as drinks from a specialized coffee shop, customers will appreciate it. The same applies to tea: aromatic loose-leaf tea or interesting fruit and herbal blends can set your establishment apart from the competition.
Selecting coffee and tea equipment for fast food
To integrate coffee and tea preparation into the fast-paced fast- food scene , it’s essential to select the right equipment. Fortunately, today’s market offers a variety of solutions for any scale and budget:
- Professional automatic coffee machines.These automated machines prepare espresso and milk-based drinks at the touch of a button, ensuring consistent quality and high speed. Barista skills are not required – just press a button.
- Semi-automatic espresso machines.If coffee is a key part of your concept, it makes sense to install a classic espresso machine with a portafilter and grinder, training your staff to become baristas. Manual preparation requires more time and skill, but it produces a very high-quality drink.
- Self-service coffee machines.If you can’t dedicate a staff member to coffee, install a vending machine that makes whole-bean coffee, hot chocolate, or tea at the touch of a button. This solution is suitable for small establishments or as an addition to the dining room: guests can make their own drink while they wait for their order.
- Filter coffee makers for Americano .A drip coffee maker brews a whole pot of Americano in one cycle , ready to pour into glasses immediately. This means minimal effort and very fast service, especially useful in the morning.
- Tea equipment.A kettle (hot water dispenser) for a constant supply of boiling water is sufficient. Fast food restaurants typically use tea bags (black, green, herbal) – it’s quicker, but it’s important to choose high-quality brands. In summer, you can also offer iced tea – it’s also quick to prepare and popular.
When choosing equipment, consider the projected demand and the size of your business. For a kiosk with a couple of tables, a compact automatic coffee machine or even a capsule model is sufficient. For a larger restaurant, it makes sense to invest in a productive professional machine with two groups. Be sure to also consider service: coffee equipment requires regular cleaning and periodic maintenance. Choose brands and models with service centers or partner technicians available in your area. Downtime during peak hours means direct losses, so equipment reliability and timely service are critical.
Supply of ingredients and cooperation
By launching a coffee and tea business, you’re entering a new segment— the coffee and tea business. The quality of your ingredients directly impacts the taste of your drinks and the success of your business. Here are some tips for launching this business:
- Find a reliable supplier.Find a company that specializes in comprehensive coffee shop supplies so you can source coffee, tea, and all related products (syrups, cups, etc.) from a single partner. This will simplify logistics and potentially earn you bulk discounts for bulk purchases. Pay attention to supply stability: coffee beans and tea should always be available without interruptions.
- Coffee and tea quality.Choose versatile, medium-roasted bean blends (for example, a blend of Arabica and Robusta) – these beans are suitable for espresso and milk-based drinks. Buy tea only from trusted brands, including classic varieties (black, green) and a couple of original flavors for variety. You can also add cocoa or hot chocolate – these drinks are popular with children and in cold weather.
- Equipment rental and support.If your budget is limited, inquire with suppliers about coffee equipment rental programs. Many suppliers offer coffee machine rentals contingent on purchasing coffee from them, significantly reducing start-up costs. You can often also count on staff training and consultations from the partner on developing your coffee business.
- Maintenance and warranty.It’s best to discuss maintenance upfront: regular preventative maintenance and prompt repairs in the event of a breakdown will protect your equipment from downtime and your revenue from lost revenue.
Remember that by introducing coffee and tea, you’re expanding your business into a new area— the beverage segment. Treat it as a separate mini-business within your fast food chain : track sales, try new products (for example, seasonal syrup flavors or new tea varieties), and analyze what your customers like. A well-designed coffee and tea business can generate significant profits with very modest costs.
Conclusion: New opportunities for your fast food
The modern fast food market demands flexibility and the ability to find additional revenue growth opportunities. Introducing coffee and tea into the fast food scene is just such a step. It increases the average bill, attracts new customers, and maximizes the business’s full-day operations. Many successful fast food chains have already made coffee an important part of their strategy, and for good reason: selling highly valued beverages significantly improves business performance.
If you’re running a fast-food business and want to take it to the next level, consider expanding into coffee and tea. There are specialists on the market ready to help with equipment selection, staff training, and the supply of high-quality whole-bean coffee, tea, and related supplies.
Leave your contact information for a consultation, and you’ll receive personalized recommendations on how to maximize profits by selling coffee and tea at your establishment. Our experts will answer your questions and help you avoid common mistakes. As a result, you’ll not only gain a new source of income but also delight your guests by offering them high-quality coffee and tea, quickly and easily accessible near their home or work.