Stay Ahead of the Top 4 Challenges for Coffee Shops, Cafés & Bakeries

How Coffee Shops, Cafés & Bakeries Can Go from Inflation to Innovation

Coffee shops, cafés and bakeries across Europe are facing a dilemma: on one hand, business is booming with the demand for specialty beverages and indulgent snacks at a record high. On the other hand, margins are being squeezed due to rising ingredient costs, fast-moving consumer trends, supply chain disruptions and more.

Businesses that adapt swiftly will stay competitive in 2025 and beyond. Here, we explore the top four industry challenges and how an Electronic Point of Sale (ePOS) solution empowers businesses to face them head-on.

Challenge 1 – Rising Coffee and Ingredient Costs

The Challenge:
Global supply chain disruptions, climate change and surging demand are driving up the price of coffee beans and other key ingredients. Inflation and currency fluctuations further complicate cost management, putting pressure on profit margins.

How ePOS Helps:

• Real-Time Inventory Management
  Modern ePOS systems such as ExtendaGO provide real-time stock levels, so you can adjust menus to reflect availability.
• Data-Driven Analytics
  Advanced analytics help auto-calculate margins, set daily discounts, manage regional and local VAT rates and output detailed financial reports.
• Waste Reduction
  By monitoring inventory levels and automating stock replenishment, stores can minimize waste and cut unnecessary costs

Challenge 2 – Labor Shortages and Wage Changes

The Challenge:
The hospitality sector across Europe is struggling with labor shortages and rising staffing costs. For example, leading trade body UKHospitality recently reported a 10% rise in the cost of employment per person within the British Hospitality sector.

With fewer staff available and continuous changes to wages and tax to contend with, businesses must urgently look for new ways to protect the bottom line.

How ePOS Helps:

• Powerful Workforce Insights
  Within an ePOS for cafés, bakeries and coffee shops, managers can identify peak hours and allocate staff accordingly to optimize labor costs
• Streamlined Order Processing
  A user-friendly ePOS system is designed to streamline the omnichannel orders, which reduces training time for new staff and improves efficiency
• Cost-effective Solution
  The most cost-effective ePOS solutions are free to set up and include lifetime updates – so you don’t get lumped with unexpected development fees

Challenge 3 – Seasonal & Limited-Time Beverages

The Challenge:
Loyalty is hard to win, with customers looking for indulgent treats, limited-time drinks and seasonal menu choices. For example, British café and restaurant chain Grind reported sales growth of 106% for their Matcha Tea last year.

Coffee shops, cafés and bakeries must move fast to please the modern consumer. However, efficiently testing and rolling out new menu items can be complex, costly and time-consuming.

How ePOS Helps:

• Instant Menu Updates
  Within a best-of-breed ePOS, cafés can add or remove menu items across multiple locations with just a few clicks
• Targeted Promotions
  Built-in campaign and promotion tools engage your customers with store-specific seasonal campaigns and promotions across all channels
• Customer Insights
  The ePOS leverages data to track which seasonal items drive the most sales and customer engagement

Challenge 4 – Balancing Efficiency with Customer Service

The Challenge:
Automation and AI have revolutionized operations in bakeries, coffee shops and cafés – but with such a wide range of tools available (from customer loyalty programs to programmable equipment to data-led inventory management), it can be easy to lose sight of the personal interactions that are so integral to the industry.

Businesses must ensure new tools liberate baristas and employees from repetitive, manual tasks. This will enable them to focus on delivering exceptional service, rather than making them feel micromanaged or ‘replaced’ by technology.

How ePOS Helps:

• Advanced Data Analytics & Reporting
  A next-gen ePOS offers detailed analytics to monitor sales and inventory in real-time, enabling informed decision-making and stock management
• Personalized service
  ePOS technology enables businesses to monitor customer preferences and order history in real-time, so staff can offer a bespoke and memorable experience
• Plug and play
  All-in-one ePOS tools are easy to set up and quick to learn, minimizing downtime and allowing staff to focus on serving customers

The Secret Ingredient for Efficiency, Innovation, Cost Control & Outstanding Customer Service

ePOS technology is a must-have for coffee shops, cafés and bakeries. Not only does it streamline your operations, save you money and deliver outstanding service for customers, but it enables you to keep menus fresh and exciting by quickly launching limited-time offers and trend-led products.

ExtendaGO ePOS provides the tools needed to adapt to the fast-paced needs of the industry, ensuring your coffee shop, café or bakery rises to every challenge in 2025 and beyond.

Want to see how ExtendaGO can deliver truly unified hospitality and service? Visit www.extendago.com