1. The Quest for PerfectionSpecialty Coffee Convenience Store Program Mister Koffee Service / 1-800-443-1340 / www.misterkoffee.com

2. Coffee Trends Consumers stop to buy coffee more than they fill uptheir cars, providing convenience stores with a greatopportunity to build loyalty and repeat sales.Convenience stores are a preferred destination forcoffee. Roughly one of every five (18.3 percent) cups ofcoffee purchased by consumers in 2005 was bought ata convenience store. Ninety percent of convenience store customerspurchase coffee at a convenience store over any otherretail format. Americans purchase coffee at convenience stores/gasstations more than anywhere else. 39% of customerspurchase coffee at convenience stores, compared to38% at local coffee shops/restaurants, and 35% whobring coffee from home. The percentage of coffee buyers who know they weregoing to purchase coffee when they entered aconvenience store is 96%; making coffee the TOPplanned purchase in a convenience store. (Source: NACS, updated July 2006)Mister Koffee Service 3. Even before the gourmet coffee craze lit a fire under the category, it was ounce for ounce one of the top food service profit makers in the convenience store industry. Profit potential has continued to grow in recent years, but that growth is handcuffed to higher consumer expectations. In order to seize those extra dollars, its not enough to brew a better cup of coffee, they must also convince customers that its a better cup of coffee. That takes marketing. Convenience Store News Mister Koffee Service 4. Profitability Many store owners do not understand the profitability potential of a well run coffee program. 5. Retail Coffee Profitability Analysis.Coffee cost per 64 oz. Pot = $.90($75.00 per 84 count case)Cup, Lid, and Condiments$.59/Pot or $.13/Serving for Cup, Lid and CondimentsTotal Cost/Pot= $1.49Gross Sale/Pot= $3.95Net Revenue/Pot= $5.46(Yield = 45, 12oz. Cups per pot @ $1.39 retail price per cup) 6. Cups/Da GP/Cup GP/DayGP/Week GP/Year y20$1.10 $22.00$154.00 $8008.0035$1.10 $38.50$269.50 $14014.0050$1.10 $55.00 $385.00 $20,020. 00100 $1.10$110.00 $770.00 $40,040. 00150 $1.10$165.00 $1155.00 $60,060. 00*based on $1.39 retail and $.29/cup cost including condiments,cup, lid, etc. 7. Typical program results experiencedindicate increases of 10% whenretailers utilize a completeMerchandising Point Of SaleProgram. Incremental coffee sales of 10% to25% are common when DarkRoasts and Flavored coffees areoffered in addition to regular anddecaf. Total program sales often increaseby 10% to 25% or more whenretailers upgrade their coffeeprogram to include an enhancedprogram presentation and productoffering. 8. The best way to extract increases for yourprogram are by adding components to theprogram or changing the appearance of theprogram. The components are: Merchandising POS material to help dress up the coffeeservice area and upgrade the overall appearance of thestore. Equipments updates & upgrades. Upgrading theequipment, service counter, and signage will all help theconsumer form a more positive image of the program. A balanced coffee menu. Offering the correct coffee blendsWhen all of pack weights, including dark roast, Origin increaseandand these methods are combined, a 25% sales coffee, is aflavor options are possibly the most effective method tonormal outcome, and will produce great profitability results!increase sales.