As c-stores gravitate toward bean-to-cup (BTC) coffee dispensers, they’re seeing an uptick in sales. Meanwhile, cold coffee is simultaneously rising as a trend and customization remains a top demand from customers.
Brunswick, Maine-based Rusty Lantern Market is one chain that has seen success with the shift to BTC. As of 2022, 25 out of the chain’s 26 stores in Maine, New Hampshire, Massachusetts and Rhode Island, feature BTC, while the 26th site includes a Dunkin’ Donuts operation.
“It’s important that we treat our customers to a great coffee experience,” said John Koch, manager & CEO, Rusty Lantern Markets LLC. “That’s why the beans we use are craft roasted by a local artisan roaster, Coffee By Design, and that the BTC machines grind those beans fresh each time a self-serve coffee — hot or iced — is brewed.”
Its proprietary coffee, Rusty Market BeansBlend, was developed with the coffee roaster to the company’s specifications.
Since adding BTC dispensers, Rusty Lantern has seen a “significant uptick” in sales. In October, the chain’s year-over-year increase averaged a whopping 79%, Koch said.
Rusty Lantern’s typical line-up includes three machines at each site. Two machines offer a combination of light, medium, bold and decaf coffee, while a third offers a choice of three flavored blends.
“The most popular non-flavored blend is light, and the most popular flavor is called Jamaican-Me-Crazy,” Koch said.
“Customers love the coffee,” he said. “They can get the same fresh cup at 5 a.m. as they can at 2 p.m., 10 p.m. or after midnight. The interface with the machines is straightforward — big screens that step people right through the process, so the learning curve was not steep, and adoption (was) pretty seamless. The feedback has been outstanding. Customers enjoy the customization, the always fresh attribute and the option for iced coffee.”
Many of the BTC machines are also set up to offer hot chocolate and cappuccinos. Plus, several Rusty Lantern stores feature handcrafted specialty drinks, including cappuccinos, flavored lattes, Americanos, hot chocolate, frozen drinks, smoothies and refreshers. They also offer cold brew and nitro-infused cold brew on tap.
“Our cold brew is ground from whole beans and steeped in-house for 24 hours before mixing,” Koch said.
GetGo’s Upgraded Coffee Bar
In February, GetGo Café + Market, — with more than 260 locations throughout Pennsylvania, Ohio, West Virginia, Maryland and Indiana — completed its transition to BTC. It rolled out the new machines, which feature GetGo’s new “signature blend” coffee beans, to 230 stores.
“Customers have responded really well to the new machines, and we’re continuing to see growth. These machines brew really consistent, great-tasting cups of coffee, with the added bonus that they’re easy to use and easy to clean,” said Marion Clarke, GetGo category merchant, who handles the chain’s coffee program. “These machines are a win for our guests and a win for our team members, too.”
It’s also catering to cold coffee fans, by adding nitrogen-infused and cold brew coffees to its lineup. Customers at GetGo’s Ohio and Pennsylvania stores can find cold-brew nitro and French Vanilla cold brew offerings. And customers at its Indiana stores can find French Vanilla and Mocha Cold Brew.
“We decided to offer these products as a way to continue innovating,” Clarke said. “We’re always looking for new products that meet consumer demand while also staying competitive. Our guests love the new products.”
In addition, GetGo features self-serve hot chocolate and cappuccino machines. And guests who prefer the full barista experience can order made-to-order hot chocolate, lattes and drinks with cold foam via its kiosks.
The lineup is kept fresh with new toppings and options every few weeks.
Hot tea lovers can select from six varieties of tea bags — the coffee machines brew hot water.
BTC Helps Pilot Meet Demand
Pilot’s BTC machines allow the busy travel center chain to keep up with customer demand for freshly brewed, high-quality hot or iced coffee on demand 24/7, 365 days a year, noted Ed Houk, director of food and beverage for Pilot.
Pilot offers a range of roast levels including light, medium, medium dark and dark roasts. Its coffee program ranges from its signature Pilot house blend coffee to single origin coffees, and it also features flavored coffees, Rainforest Alliance Certified and USDA Organic offerings.
“Pilot’s coffee offerings receive widespread attention and is noted as the ‘best coffee on the interstate,’” Houk said. The coffee is sourced from around the world and includes drip, BTC, iced coffee, cold brew and frozen coffees.
The Pilot Flying J travel center network includes over 750 locations in 44 states and six Canadian provinces, and some 650 locations feature BTC.
For cold coffee lovers, Pilot provides its signature Brazilian cold brew year-round, along with limited-time-only flavors throughout the year, plus mix ins.
“Our caramel cold brew is our seasonal coffee offering this fall and winter, and it’s a fan favorite,” Houk said.
Hot tea lovers can select from six flavors of tea bags. Pilot also offers hot chocolate and core cappuccino flavors year-round in addition to LTO flavors.
“This winter’s LTO is a White Chocolate Candy Cane Hot Chocolate,” Houk added.
Dash In Sees Efficiency Gains
Dash In began embracing BTC in 2018 and integrated it across all its Dash In neighborhood concept stores. Today it features the program in 40 Dash In locations.
“This innovative method, dedicated to delivering the finest and freshest cups of coffee tailored to our guests’ preferences, has proven to be a cornerstone of our coffee program’s success,” said Barbara Kessler, senior director of food, beverage and retail programs for Dash In, which operates 58 Dash In sites in Delaware, Maryland and Virginia.
Dash In has seen substantial efficiency gains since adding BTC.
“The bean-to-cup approach not only ensures a consistently high-quality cup of coffee, but also streamlines our processes, reducing wait times for our valued customers. The reduction in waste and simplified maintenance have been noteworthy operational advantages, allowing us to focus on what matters most — delivering an exceptional coffee experience,” Kessler said.
Kessler noted coffee sales have seen a “tremendous upward trajectory year-after-year” since rolling out BTC.
“One particularly interesting trend we’ve observed is the emergence of a new guest segment — the decaf enthusiast,” Kessler said. “Prior to the switch to the bean-to-cup method, decaf sales were minimal. However, with the introduction of freshly ground and brewed decaf coffee at the push of a button, we’ve witnessed a significant uptick in demand.”
Using its BTC equipment Dash In is able to provide its high-quality arabica coffee to its iced coffee program, which includes seven varieties and is available 24/7. Dash In doesn’t currently offer nitro brew.
“We tested it in some pilot sites, but it didn’t align with what our guests were looking for at the time. Our focus is on delivering a top-notch experience with the BTC method, always staying attuned to customer preferences,” Kessler said.
Dash In’s hot dispensed section expands beyond coffee.
“Our tea enthusiasts can select hot water to brew one of our six traditional tea flavors,” she said. “Additionally, our neighborhood concept and legacy Dash In stores feature cappuccino machines, providing a range of three to six flavorful options depending on the store type.”
Coffee Trends
Pilot has found that customers across age groups are continuing to increase their coffee consumption.
Meanwhile, Houk noted that younger coffee drinkers are entering the category through cold coffee offerings.
“Guests are not letting the cold temperatures keep them away from their favorite cold brew,” he said.
Across the board, today’s customers are seeking higher quality and increased customization from coffee programs, including a variety of blends and flavors, seasonal flavors, both hot and iced varieties, good taste/flavor, value and freshness, according to retailers.
“Quick service remains essential, but customers also value sustainability, tech integration and health-conscious choices,” Kessler said. “In essence, it’s about delivering a convenient, diverse, and personalized coffee experience that goes beyond speed.”
And BTC is helping companies achieve those goals.
“In the hot-dispensed category, BTC programs are popping up all over the place. This can be attributed to increased sales, better margins, reduction in waste and ease of operations,” Koch said.
Clarke noted that guests are showing a preference for fresh coffee they can brew themselves, but at the same time they want to customize their beverage to their liking.
“We take that to heart, by presenting them with multiple flavor options, limited-time offers and flavored creamers. We really lean into the seasonal trends. This fall we had a featured pumpkin spice latte, and we’re prepping to introduce peppermint flavors for this winter,” Clarke added.
Customer preference for variety “extends to customization, with customers increasingly seeking personalized coffee experiences,” Kessler added. “Beyond being a traditional hot beverage, coffee is evolving into an indulgent treat, embracing both the comforting warmth of a classic cup and the refreshing allure of customized cold options.”
Promoting for Success
Even with a BTC program, promotions are still key in driving trial and adoption. When Rusty Lantern first launched its BTC program it offered Free Coffee Fridays, which helped drive early adoption. Today, it continues to offer a Coffee Lovers’ Loyalty Program and a permanent promotion in which customers pay 99 cents for a cup of coffee, if they use the chain’s branded travel mug.
Meanwhile, Get Go ran several promotions this year, including “free coffee Mondays” earlier in the year and “99 cent coffee Fridays.”
“We pulse in coffee discounts and bundle promotions into our weekly app deals, which are available excessively through our MyRewards Plus app,” Houk said. “We also offer in-store bundle deals featuring Pilot coffee and food offerings. This holiday season, we’ve also brought back a fan favorite, Bourbon Pecan Coffee.”
When Dash In opens a new store it features coffee at a special price — 99 cents for any size.
“Following this initial promotion, our emphasis shifts to a unique approach called ‘Make it a Combo.’ This offering allows Dash In customers to enjoy a discounted price when they pair their coffee with any side item alongside our fresh, on-premise made food products,” Kessler said. “This strategy integrates coffee seamlessly into our overall dining experience, providing added value when combined with our diverse food options.”
Looking Ahead
Despite the growing cost of coffee beans, all four retailers noted they anticipate steady growth in coffee sales in 2024 thanks to the high-quality coffee at a reasonable price BTC programs help them provide.
Kessler expects coffee sales growth to be driven by a continued consumer preference for diverse and customizable coffee experiences in 2024.
“We’re continuously on an uphill trend as it relates to coffee sales, and we expect that continue,” Clarke said. “These bean-to-cup coffee machines offer an amazing product, and when paired with our signature blend, our guests are getting a truly unique experience.”
