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Cafe Americano Coffee Sales Drop as Cold Wave Cuts Foot Traffic

December 21, 2023
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Why cold weather hurt independent coffee shops this winter

A cold wave pushed Guangdong temperatures into single digits, but the expected rush of hot drink orders did not follow. Independent coffee shop owners in Guangzhou and elsewhere posted rock-bottom daily revenue on social media, with several reporting takings of around 20 yuan or nothing at all. Fewer people walking the streets meant fewer customers inside.

The assumption that winter lifts hot cafe americano coffee sales collides with the reality of weather-dependent foot traffic and heavier competition from chain brands. Whether a drink is an americano hot or cold matters less than getting people through the door, so shops are testing promotions and delivery to compensate for the drop, with limited success.

When a cold wave sweeps across Guangdong and temperatures plunge to single digits, people instinctively crave a steaming hot latte. However, independent coffee shop owners have found that the anticipated surge in hot beverage consumption has not arrived as expected. On social media, a Guangzhou shop owner posted lackluster revenue figures, striking a chord with many peers. The cold air has not only frozen pedestrians on the streets but also frozen the coffee shop business. Faced with plummeting foot traffic and intensifying brand competition, owners are pulling out all the stops, yet still find it hard to hide their helplessness. This article will take a deep dive into this "weather-dependent" industry predicament, revealing the survival challenges and coping strategies of independent coffee shops in the harsh winter.

Since last week, temperatures in Guangdong have dropped sharply, as if winter arrived overnight. People woke up in a daze and hurriedly threw on down jackets, and yesterday the cold air struck again, pushing temperatures down to single digits. After a walk outdoors, stepping back inside makes you feel as if you've been flash-frozen.

In such cold weather, sitting in a warm, cozy cafe and savoring a hot latte is undoubtedly one of winter's great pleasures. As the hot drink goes down, warmth spreads through your whole body, and a sense of happiness wells up, making you want to stay in the shop all day.

However, reality is not so rosy. Recently, a coffee shop owner in Guangzhou posted their daily revenue on social media, admitting that the shop's income had hit rock bottom.

Many others have had similar experiences to this owner. Numerous netizens commented that their shops' recent revenue was equally dismal: "No business... daily income 20," "No business, street-facing shops can only watch the road every day," "Open for three weeks, yesterday hit a new low," "No business... daily income 20," "Nope, today is miserable," "Nope, today we got a goose egg"...

In short, the weather is too cold, the number of customers coming to the shop has dropped significantly, and the business of independent coffee shops has thus languished.

Is this beyond your expectations? Many people assume that winter is the season when demand for hot drinks surges, and that hot Americanos and hot lattes at coffee shops should sell well. But based on the feedback from shop owners, the actual situation differs somewhat from expectations.

Temperatures plummet, cold winds bite, and pedestrians on the streets quickly dwindle as the temperature changes. For some independent coffee shops, they originally chose low-traffic locations to save on rent, and now the streets are nearly deserted, with even fewer people coming in for coffee. Standing behind the counter all day, they might not see a single walk-in customer.

Many owners say that current revenue mainly relies on takeout, but overall business is still far from optimistic. This is because major brands have rolled out new products and various promotional activities for Christmas, drawing the attention of most coffee consumers. Independent coffee shops without capital backing can only sigh helplessly in the face of the endless customer-attraction tactics of major brands.

To get through this harsh winter, coffee shop owners are racking their brains. One owner bought an egg waffle maker and a sandwich maker, perhaps initially just wanting to add some variety to the shop, but it turned out that egg waffles and sandwiches far outsold coffee—a classic case of "unintentional gains."

Some owners choose to temporarily close and regroup. Although they still have to pay rent on time, shutting down can save on utilities and ingredient costs. Since they can't make a profit, they might as well shift their thinking and keep operating costs as low as possible.

The operating predicament of independent coffee shops under the cold wave: why hot drink demand failed to translate into in-store foot traffic

Some netizens also offered tips for coffee shop owners, such as adding seasonal decorations to attract photo-loving customers who like to check in. Many owners understand this logic and have considered it, but the reality of "being short on cash" is just too cruel.

For some coffee shop owners, the sharp drop in temperature is nothing short of a dual blow to body and mind. They not only have to endure the physical cold but also bear the psychological pressure of dismal shop revenue. They can only pin their hopes for increased foot traffic on the weather, longing for temperatures to rise soon so that business can gain some warmth as well.

Image source: Xiaohongshu

The above content is compiled by CoffeeHunters, a coffee news website.

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