Coffee is hot, refreshing, and addictable. On average, people in America drink around 77.4 billion cups of coffee annually– valued at $35.8 billion. The retail value of coffee market is approx $30-32 billion dollars––64 percent of people drink coffee every day, whereas, 73 percent consume it on a weekly basis. (Source: National Coffee Association)
Wake Up and Smell the Coffee Business Opportunity!
Have ever noticed Starbucks long queue? No doubt, coffee is a successful business! This is the reason Big CEO’s of major companies are looking to invest in this business.
Thinking To Start a New Coffee Shop?
Here’s the guide:
Ins and Outs of Opening a Coffee Shop
As discussed above, owing to a coffee business is a great opportunity. A large percentage of teens and adults all over the world love to take coffee for breakfast while others prefer to grab a cup before leaving home. This is why coffee shops make great sales.
1. Find the right location
Coffee shops are the best places to meet and greet. Also, it’s a good place for casual business meetings.
As said above, searching a good location is vital for attracting new and old visitors to the coffee shop. The owner needs to research and decide whether the selected location is a good one. High traffic locations are schools, malls, parks, and other public places.
2. Sell Superior Product
Before opening a coffee shop, the business owner must consider that gourmet coffee drinkers want something more than an ordinary mug of coffee. According to the 2018 research, by the National Coffee Association of America, around 60% of the coffee beverages sold were of unique quality. Even now that percentage is rising each year. Remember, succeed in serving the variety and customers will prefer your brand over the competition. This means the coffee shop owner will need to:
- Invest in a high-quality espresso machine, utensils, and related equipment.
- Source the fresh-roasted coffee beans.
- Serve fresh snacks. Besides coffee, add additional products in the menu like donuts, cookies, sandwiches, and muffins that can complement coffee.
- Offer a mix (Mochaccino, frappés, Espresso, Cappuccino, chai lattes, Hot Chocolate, etc.)
- Ensure to have an experienced staff—a skilled barista is vital to the coffee preparation.
Add Own Unique Creations
3. Producing anti-ageing coffee
As we know that coffee has some anti-oxidant properties and both men and women are generally health conscious, therefore, they would do anything to stay fresh and healthy. What a new coffee shop owner can do is to add some other ingredients that have the same properties and would go well with coffee. Just put them together and make a new anti-ageing coffee brand, highlighting how this beverage would help to fight the ageing process.
4. Weight loss coffee-high demanding
Coffee aids weight loss. Currently, there are dozens of brands that are selling weight loss coffee all over the world. We would suggest a new business owner start his own weight loss coffee brand that is less expensive than competitors. For this, one needs to introduce a multi-level marketing plan to enhance the sales of these products.
5. Create a Relaxing yet Trendy Atmosphere
People love to sit long at a comfortable atmosphere. Starbucks’ relaxing, and comfortable atmosphere is one of the biggest attractions that customers visit their café.
When opening a coffee shop, one needs to take care of setting the right atmosphere––key to attracting customers who like to hang out with friends, family, or colleagues. The ideal atmosphere is bright and clean with natural lights and comfortable seating area. Unless someone is a design pro, it is advisable to hire services of an experienced interior decorator to design the shop.
6. Set Best Prices
The markup on coffee is very high in the US. But apart from that there is a huge competition in the coffee industry. Therefore, when pricing beverages one needs to research what others are charging for the same varieties.
7. Offer Loyalty Cards
A loyalty card can be defined as the icing on the cake. It really helps business owners to boost their clientele. Getting a free espresso or hot chocolate on a loyalty card after every X number of prior purchases will bring a smile on customer’s face. In short, it
- Encourages regular customers to spend more often and
- Invite new customers
Make sure to make quality cards that have business logo and name printed on it and won’t easily disintegrate after long-term use. Also, it is important to know that nowadays new POS (point of sale) systems integrate loyalty offers automatically; giving people relief from carrying cards in their wallets.
What are the low-cost options of running a coffee business?
- Start an online coffee shop
- Open a mobile coffee shop
- Establish a coffee cart
- Coffee shop drive-thru
- Piggybacking the coffee shop
Is Coffee franchising better option?
Coffee franchising could be the perfect option as it offers the prospect of scalability. The new coffee owner doesn’t need to invest time and money in marketing because there’s always a steady stream of customers 24/7. The market for coffee remains the same and very promising.
However, a person needs to pay hefty franchise fee. Likewise, there will be no control over the brand or location of the café, on the menu and its pricing, and other aspects of the business.
On the contrast, the chances of success are high in having independent coffee business opportunities. But for this, one needs to prepare the detailed business plan that discusses each minor point, in easy words, for business owner.
The coffee Industry is growing rapidly in U.S. The distribution business of coffee products is also very profitable. A person can sell any coffee related products such as anti-aging coffee or weight loss coffee in bulk.
At least, we would say that each concept for running a coffee business has its own advantages and disadvantages. Therefore, the right choice depends on your budget and entrepreneur skills.
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