Three Cup Concept
One Cup Concept
This will represent 100% of sales. It is sometimes chosen where drink sales are not of prime importance- maybe food sales are of a higher importance. A one cup concept can always be planned to expand upon at a later stage, giving good year on year growth in profits.
Two Cup Concept
In a two cup concept
Small = 60% of sales
Medium = 40% of Sales
Therefore if compared to a one cup concept, 40% of sales have now moved to larger cup, increasing profitability.
Three Cup Concept
In a three cup concept
Small = 20% of sales
Medium = 60% of Sales
Large = 20% of sales
Here it is demonstrated that introducing a larger size, moves sales to the middle option, some of this depends on the country, in the USA consumers tend to select larger drinks, so the sales of Large would be much higher, whereas UK market tend not to want to buy large, and opt for the middle option.
In a three cup concept, sales in the large cup can drop to a small percentage, and clients think it is not worth stock a cup with so little sales, but of course, as soon as they discontinue the large cup, sales slide back to the small cup.
So the point of the large cup, especially in conservative markets, is to give a middle option.
Up Sizing
In a one cup concept, add a second cup, to increase sales.
In a two cup concept - increase to a three cup concept.
In a three cup concept - discontinue small size, and introduce a larger size.
Starbucks was using 8,12, and 16oz, discontinued 8oz, and introduced a 20oz cup!!!
Menu Board - Descriptions
Great consideration needs to be paid to descriptions on menu boards, taking into consideration local market.
For instance in the UK, in a two cup concept calling drinks Small and medium, would result in sales
Small = 60% of sales
Medium = 40% of Sales
But in the US market menu board would probably read medium and large and completely reverse percentages.
In the UK market for the two cup or even three cup, the small cup could be called a Junior Cup most adults would not want to buy a child's portion, and opt for one of the other sizes.
One of the advantages of giving customers a choice, beyond increasing turnover and profit, is that customers who are on a budget can pick menu options that give better value for money,thereby retaining there business.
One of the considerations that needs to be taken when selecting cups, is what lids will fit cups, if using 8,12 and 16oz this would require two lids, but 12,16 and 20oz would be just one lid, lid selection by serving staff can slow serving time, resulting in longer queues and lost sales.
The size of the cup, can bear no relation to the amount of consumable liquid
Cappuccino - froth on drink makes cup look full
Coke - ice can represent 30% of volume
Although in some markets (Germany) it is a requirement to mark containers with a fill line.
different markets use different size cups
Fast food 12,16 and 22oz
Cinema 22,32 and 44oz
Ring us now for further advice on all aspects of paper cups. Our technical department would be happy to discuss how you can maximize sales with your customers.