Business Thoughts While Buying Coffee
I love getting ideas for content just from every day experiences!
And today I had quite the revelation, while I was sitting in line for a staple of Canadian cuisine....
A Tim Horton's coffee!
Let me frame this so that people that are unaware at how 'big' Tim Horton's is in Canada can appreciate it.
In every town and city across this country, there is Tim Horton's. The company started back in the 60's by it's namesake Tim Horton. the hockey player, and his business partner Ron Joyce. It started as a simple donut shop but has become a fast food behemoth in the past few decades. To say this is 'as Canadian' as it gets is an understatement...
Anyways, no matter what time of day, afternoon or evening you will experience a line up. Not only in the restaurants themselves but also through their drive throughs. And it's not just during the morning rush other, I'm not joking when I say...Any time of the day, there's a line up at Timmie's.
Their menu has expanded from simple coffee and donuts, to sandwiches, wraps and their world famous chili (it's not that great but it's ok lol). But still, the majority of the people in those line ups, are there to spend their twoonies ($2 Canadian coin) on coffee.
I just sat there in awe today thinking about this business model...
The customer of Tim Horton's doesn't spend a lot at the restaurant when they go there. However they may pull up multiple times a day for their coffee, and each time they are doing so they are spending pocket change.
Here's the kicker....They do this EVERY DAY!
This takes residual income to a whole new level lol Think about that for a second, a Tim Horton's customer spends their cash multiple times a day and keeps coming back...Day after day after day after day....
I'm not sure how much truth there is to the rumor about a Tim Horton's franchise. But from what I heard, they cost about a million bucks to start and the franchisee ends up making their investment back in a year or two lol. From selling coffee lol
Mind blowing!
So what does this have to do with anything here on the blockchain or for anyone thinking of building an online business?
Other than...Create a product that builds a cult like following LOL
But for me, it's about micro payments! You see, this is a fantastic business model for a coffee business, but how can we build that into the experience here on Hive or elsewhere online?
Tips?
The tipping economy to me is a fascinating example of this...I'm a big listener to live streams and podcasts and the 'Super Chat' that YouTube has implemented has regular listeners to a show, tipping throughout. It's never big money either, just a buck or two and they tend to be regular contributors to the show.
Or heck, even closer to home...Something that is being built right here on chain from @brianoflondon and his V4V projects. This caters perfectly to a micro-payment / transaction that goes to support the creators.
I think there is so much potential for us to build income streams here on chain that we still haven't even begin to think of....It'll be so interesting to me to see if use cases from an offline world, starts to become a regular thing here on chain.
What about you?
Where do you think micro payments / tips can be leveraged and used here more?
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I listen to the No Agenda podcast as I know Brian does as well. The brilliance in the V4V (value for value) model, is that they have gamefied donations in such a way that it's fun to set a fanciful donation amount.
Sort of like if upvoting on Hive had something similar, where instead of just choosing a voting percentage alone, our contributions stacked towards a donation-based title which made it fun to become a regular contributor.
Building up to "donating" 100 HIVE would make you a Knight of the CTP Roundtable, or some such. I give John and Adam full credit for listening to their audience and empowering them to create unique ways of supporting the hosts.
The blockchain also offers that same sort of flexibility, where if you can dream it, you can do it.
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Thanks for sharing this insight, Jon. The story made me think of McD or Starbucks. That’s a similar franchise though you probabaly spent more on average there than just a few dollars. 😜
But what the essence for me is: you often tend to think of the big pay days and the big wins you might one day make but underestimate the powering accumulating many small payments/wins over time. That is also very powerful and one think I LOVE about Hive here.
Would be great to see also some pictures from inside a Tim Horton and I will definitely visit one when I make a visit to Canada 🇨🇦 one day!
Have a good one!
Thomas
When it comes to restaurants, the highest GP item on any menu is coffee. In terms of coffee, if you are doing volume, you will have a great bottom line. Turnover is inconsequential, it's the bottom line that counts.
A moderately busy coffee shop can outperform a full-on restaurant based on this reality.
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Interesting, I never thought of that before.
It is very similar to how fashion brands don’t make much on the clothing, but make the big bucks from their perfume line.
Reliable income is most helpful to build a stable business. Recurring revenue is best, because it is so predictable. Especially when the number of customers goes up. It then becomes a statistical equation.
I think tipping economy is definitely growing. Noise.cash sadly has died and I feel that is because their wrong choices and also they supported smartBCH like scam. So I feel that tipping economy needs a good stable dollar like HBD and I hope that in near future HBD gets picked up like that by the crypto users and the projects. Interesting take on coffee and it's relating with tipping economy :)
I think micropayments are a possible way to earn an income and it all adds up over time. So the biggest issue that comes along with that is the fees inccureed by doing so. It would be best on something like Hive without any fees but it's all expenses that weight down on a business.
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No wonder they make money off of coffee with brutal margins. In fact all drinks have a large margin. You will not believe it but they sell bottled water, if that falls from the sky. In the country where I was born, 75% of people buy bottled water, even though tap water has many more health controls and is of high quality.
Even so, they pay 10,000% more than the price because they put it in a piece of plastic. That is without a doubt the business of the century.
They could also be used in subscriptions. On the peakd frontend, there is an option on the wallet page to use recurring subscription but I haven't seen (on the other side) where the subscription should go. I'm not sure whether there are businesses (or creators) that are currently using the subscription model on chain.
I think it has loads of potential and can compound big over time! Time will tell for sure.
This made me question if the restaurants that I've encountered that are offering unlimited coffee maybe doing it the wrong way. Maybe they should charge for the coffee and make some of the foods free? 😁
Anyway, I like this concept. I think this is what is being used by vendo machines selling coffee? I remember a small vendo machine that is selling small cups of coffee worth 10 cents each. We thought it is very cheap that we keep on going back for it. In a day, I think I usually buy 3 to 5 cups.
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LOL! My first thought last night was why don't these people make coffee at home? But yeah, I agree that getting a bunch of those little cha-chings every day all day is way better than relying on a big chunk of money here and there.
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