Saturday, December 23, 2006

Chock Full o' Nuts Expanding Cafes

Chock Full o' Nuts currently has 135 cafes and kiosks throughout New York's tri-state area. However, it plans to expand to other markets such as Las Vegas to introduce a new generation "for whom coffee is as much a cultural phenomenon as a beverage," per the company.

"Chock full o' Nuts has been on of New York's most beloved brands of coffee for generations, known for having the highest reputation for quality, consistency and value," Jim LaGanke, svp-Chock full o' Nuts Cafe division said in a statement. A recent company survey showed more than one-third of consumers asked chose Chock full o' Nuts as teh brand of coffee that best represents New York.

I've always known Chock Full o' Nuts to be a very good coffee at a low price. It is typically available through most grocery retailers. It's like Starbucks, but without the sex appeal. I think urban professionals when I think of Starbucks. However, I see New York, then urban professionals when I think of Chock Full o' Nuts. I see morning commuters in New York City waking up and drinking Chock Full o' Nuts with a bagel and cream cheese. I don't think my vision is too far from reality. There are thousands of bagel shops all over the country touting themselves as replicas of New York City bagel shops. I feel tapping into some of these 'New York' style bagel shops would be a great way for Chock Full o' Nuts to capitalize on their current image. However, I'm not sure entering upscale markets where Starbucks already has a prominent presence is a good growth strategy. Chock Full o' Nuts will need a clearly defined marketing strategy which positions their product effectively in the minds of consumers.

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