New York City’s latest new coffee shops make a lot more money from their digital advertising and social media than they do from coffee, according to the New York Times.
The Times, citing unnamed sources, said the new coffee chain, called Kaps, has made more than $100 million in new revenue since it opened its doors in March, including a $40 million advertising campaign in March.
Kaps’s chief marketing officer, Joe Mazzoni, said Kaps is a mix of traditional coffee shops and digital outlets that use social media and other technology to get customers to spend money.
The new outlets have a “social connection” that helps customers find each other and interact with each other, Mazzini said.
He said Kapses, which opened in March and was initially funded by investors, has more than 50 locations across New York, California and New Jersey.
“Kaps is the world’s largest coffee and tea brand, and we’re really excited about our future,” he said.