By Jeff Klump,
President of K4 Architecture + Design
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SAME RETAIL BRANCH, DIFFERENT CUP OF JOE? THINK AGAIN!
Three Distinct Approaches to the Retail Branch/Café Concept
Let’s first explore how the definition of the coffee shop has evolved…from simply being a beverage offered at a restaurant to an actual stand-alone destination, service and experience that provides and encourages co-working space, meeting opportunities, and community gathering, all with FREE WiFi! Not yet convinced it is an “experience?” Sirius XM radio even has a station called The Coffee House featuring acoustic covers of today’s pop and rock music, taking the experience a step further with the creation of a musical genre.
In the past, bank leaders would have not entertained people coming in to “hang out” in the bank lobby. Fast forward to present day, it is important that bank staff welcome the opportunity to meet with patrons to cross-sell and build relationships in a comfortable, no-pressure, and relaxing environment. The cohabitation of two different retail entities is nothing new, banks have been moving into endcaps or retail centers for years. In providing bank patrons with an experience, what makes these three distinct retail branch/coffee shop models work?
Richwood Bank
(Bank Also Owns Coffee Shop, In-Branch)
Richwood Bank took a unique approach to the café concept by integrating and branding the entire operation with an in-house staff and team. The coffee shop is located within the branch lobby and internal staff act as baristas to prepare and serve the craft beverages. A natural addition to the Richwood Family of Companies, Richwood Coffee seamlessly utilized existing brand elements and a similar branded logo. In this case of the bank owned and operated café - there are no competing brand colors, elements, or finishes to consider as in the other two models discussed below.
As a financial institution, Richwood could not legally sell food and beverages, but with great leadership leading the charge on some creative and “outside the box” thinking, the Richwood Bank team came up with the idea of using the cafe concept as way to give back to the community. Instead of a monetary exchange for the goods sold, the funds are donated to a local organization or institution that the customer personally selects, creating an innovative community support and re-investment model to accompany the new enterprise. This model works well for Richwood Bank and in communities that may not have a large presence of competing local or national coffee shops. Bonus points for a walkable location!
The New Carlisle Federal Savings Bank
Winans Chocolates & Coffees
(Franchise Next Door), Springfield, OH
Looking to grow into new markets, New Carlisle Federal Savings Bank wanted to expand in Springfield by opening a second location just north of the downtown area, with the goal of attracting customers who may pass by the new location during their workday. The bank also wanted to offer the amenity of a separate tenant, an attached chocolate + coffee cafe providing an additional source of lease space revenue. This symbiotic relationship of the bank and coffee shop helps to draw more customers than either business would otherwise draw on their own, while increasing both the destination and experience factors for both.
Meeting the expectations for two separate drive thru’s on the same site (for both the bank and Winan’s) was a unique challenge and ultimately a concept was developed to provide a safe and functional solution where neither competed with the other.
While there is no common or shared space in the plan, Winan’s staff and customers do have direct access to NCF’s lobby and facilities through a set of full glass double doors. The concept allowed Winan’s their own separate tenant space that could be operated at different hours from the bank, but it also created a clear delineation of separate finishes, so that each organization could use their distinct brand colors and elements, finishes and fixtures.
This model works best for those branch locations that attract commuter traffic and where the co-habitation of the two businesses can draw more patronage than each would on their own. Bonus points for branches that can benefit from the demographic studies of the other retail enterprise!
Farmers & Merchants Bank/Biggby Coffee (Separate Business Entities, In-Branch) Springboro, OH
Combining an existing coffee franchise with retail bank space in an existing building posed special challenges and decisions as pertaining to the design and code requirements that would allow for customers and employees to use both co-tenant spaces. In response to this, a second drive thru lane for the coffee shop, that would not compete with the bank drive thru, was created by adding approximately 120 SF to the front right side of the building for Biggby Coffee.
Another consideration was the shared lobby concept, that could be separated due to the varying hours of operation by both businesses. The existing central lobby was designed with a variety of comfortable seating that could be utilized by each business, but allowing separation by a pre-existing overhead roll-up gate, with two separate means of egress for both tenants when the overhead gate was closed in the evenings. This allows Biggby Coffee to remain in operation during non-banking hours.
The interior was carefully considered to highlight, yet not clash, the existing branded colors from both Farmers & Merchants and Biggby Coffee. The dark neutral tones of the floor, casework and furniture compliment the reds and oranges of both business brand elements.
This model would work best for those branches wanting to benefit from the cross-selling opportunities of a captured audience, while not assuming risks and regulations that come with food/beverage operations. Bonus points in allowing for increased visibility for both brands and demonstration of social responsibility and community investment via facility upgrades and successful business partnerships.
In conclusion, if your organization is considering driving new business and building unique customer relationships, any of these three concepts might be a noteworthy suggestion. There may never be the “perfect” fit but these three forward thinking banks utilized their strengths, considered their weaknesses, studied their demographics, and found a solution that worked for their individual situations and business goals.
The community banking and credit union sectors are uniquely positioned to foster close relationships with local businesses, families, and organizations. Local financial institutions are the financial backbone of the regions they serve and can thrive due to the personal connections they build and trust they establish. For many executives in the industry, the question arises: "How can we make a stronger statement about our community connections through our branches and our physical and digital marketing assets?" Enhancing these connections between banks and their communities can be achieved through both physical spaces and digital platforms. This approach helps financial institutions reinforce their position as integral parts of the areas they serve. By utilizing thoughtful design and strategic communication, they can strengthen their local ties and foster deeper relationships with their customers and clients. Here are a few innovative, yet cost-effective, strategies to consider when thinking about how to make your branch(es) feel more connected to the community.
As the financial landscape evolves, so too does the role of the retail bank branch. While digital banking solutions continue to grow in popularity, the physical branch remains a critical touchpoint for many customers. Designing these spaces to appeal to multiple generations - Baby Boomers, Gen X, Millennials, Gen Z, and beyond - requires a thoughtful approach that balances tradition with innovation. Keen attention must be paid to crafting environments that not only serve current needs but also anticipate future trends, ensuring community banks and credit unions remain relevant and connected to their customers.
In recent years, the banking landscape has been shifting, as larger and regional banks have been withdrawing from smaller communities, creating a void that other financial institutions are uniquely positioned to fill. This shift has generated an opportunity for these smaller financial institutions to capitalize on the potential customer base in smaller underserved markets. Two emerging trends that are gaining traction in this scenario are the concepts of micro branches and freestanding ITM’s. The microbranch trend represents a significant opportunity to not only serve your existing customer base more effectively, but also to expand your reach and grow business in the future, especially in these underserved markets. Micro branches are typically between 1,000-1,500 square feet in size, with a focus on efficiency and convenience, and staffed with two to three universal bankers. These smaller branches require much less investment to get into the market and are more agile and designed to meet the specific needs of these communities. They are designed to provide all the essential banking services that customers need on a day-to-day basis, while also offering the flexibility to handle more complex transactions when necessary.
In the dynamic world of corporate office interiors, staying ahead of design trends is crucial to creating spaces that not only inspire productivity but also reflect the latest aesthetic sensibilities. As a firm specializing in corporate office design, K4 embraces Pantone's Color of the Year for 2024 - Peach Fuzz. This warm and inviting hue offers a fresh perspective on creating contemporary workspaces that balance sophistication and comfort and an opportunity to infuse sophistication, and a touch of modernity into the corporate design landscape. Peach Fuzz, a delicate and nuanced shade blending peach and blush, brings a sense of tranquility and optimism to any space. When incorporated into corporate office interiors, this color has the power to redefine the atmosphere, promoting a positive and collaborative environment. K4 is committed to enhancing the workplace experience, and we recognize the significance of color in influencing mood and productivity.
In the dynamic landscape of community banking, where the strength of relationships is paramount, the role of design extends beyond aesthetics—it becomes a strategic catalyst for talent acquisition and retention. In an era where attracting and retaining top talent is pivotal for organizational success, the significance of an intentionally designed workspace cannot be overstated. In this article, we delve into how strategic design decisions can not only enhance the physical environment but also foster a culture of engagement, innovation, and long-term commitment among employees, contributing to relationship building and the overall prosperity of community banks. Join K4 on this journey through the intersection of design and community banking, where the blueprint for success lies in the spaces we create for those who make our banks the heart of the community.
In the previously published Journey to Brand Consistency: Part I, K4 addressed Facilities, Marketing & People as the three pieces that comprise the Financial Success Puzzle for community banks. This article examines one level deeper in unifying physical and digital marketing assets within the Financial Success Puzzle, and the importance of creating a harmonious and powerful brand identity across all platforms. In the fast-paced and ever-evolving community banking industry, maintaining a strong and recognizable brand presence is vital for success. As a full-service design and branding firm working closely with community banks, we have witnessed the transformative power of consistent marketing assets in bridging the gap between the physical and digital realms. By solidifying the customer experience across all touchpoints, banking institutions can establish a stronger emotional connection with their customers and create a lasting impact on their success. Investing in brand consistency is not only a strategic move but also a reflection of a bank's commitment to their own stability and future growth.
Now more than ever, brand consistency is of utmost importance to financial institutions. Creating brand consistency goes a long way in building brand trust, increasing customer/employee/community loyalty, and impacting your bottom line. Why is there so much brand inconsistency in the community banking landscape? Because being brand consistent requires change and commitment, and it can be tedious and expensive. Taking the first step is often overwhelming. Where do you start? What do you update first? These are excellent questions, but there are other important questions to consider. What is the cost of NOT getting brand consistent or what is the cost or potential loss of creating brand confusion? Inconsistencies are costing your bank time and money. Not practicing brand consistency will cost you significant consequences to customer experience, brand reputation, and overall loss of trust – all of which can impact your bottom line. Conflicting brand usage accounts for a damage to brand credibility, making it harder to compete in the market. As K4 gets ready to hit the road in 2023, presenting at various community banking conferences on this topic, we thought it was important to preamble this timely subject of the Financial Success Puzzle. At K4, we define the Financial Success Puzzle as a 3-piece formula to creating and maintaining brand consistency for community banks. This formula is simply the act of connecting people to place and connecting brand identity to place. Many retailers have capitalized on this concept for years. Your branch facilities, marketing & people MUST work together to create stability and not only that…they must be triplets, not just siblings. They can’t just resemble one another; they need to be nearly identical in their delivery.
For decades, small town business districts across America have featured a strong physical presence from a local bank perspective. Near the courthouse or city hall, these buildings are often identified by their traditional columns and prominent facades of brick or stone. Not only do these structures help establish the fabric of the streetscape; they often contribute to defining the social framework of the residing individuals and neighborhoods, supporting the hopes and dreams of generations. Community banks need to continue to reinforce their presence and values to those individuals and businesses in the geographic areas they serve. Making your bank’s physical appearance memorable, builds brand awareness and offers an opportunity to reinforce the benefits of banking locally which includes working with trusted friends and neighbors. Many community banks are exploring ways to create community space by revitalizing main offices and branch experiences while positioning themselves as a valuable and integral local resource.
Jeff Klump • November 7, 2022
