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how to start a coffee shop business

A Guide on How to Start a Coffee Shop Business

Starbucks has now grown to above 31,000 coffeehouses around the world. Worldwide, experts estimate that sales of coffee shops are forecast to increase by at least 67% between now and 2020. On average, per day sale is about 2.5 billion cups. 

So, if a person is planning to combine their love of coffee with their business skills, it may be the right time to try luck at opening a coffee shop–––that can be extremely profitable if done right.

What options are available for opening a coffee shop?

1. Purchasing a franchise:

In this case, the franchise will take all major business decisions for a new business owner who in return, will have to pay a franchise fee.

2. Buying an existing business:

This is a smart way to acquire an ongoing profitable operation. However, searching for a profitable business opportunity to purchase is not a piece of cake. 

3. Starting from scratch:

If someone has excellent entrepreneurial skills, this option would be the best choice. It offers the most flexibility and chances of success. 

*No matter which of the above option a person chooses, the same fundamentals for hard work and success apply. 

Now let’s dig in right!

How to start a coffee shop business? 

A good coffee shop business plan should incorporate the following key factors.

1. Perfect Location 

Before opening a coffee shop, a business owner needs to focus on why other coffee businesses are so popular. Remember, coffee shops are great places to meet and greet. Moreover, they are also popular for arranging informal business meetings. 

Given the above, finding a suitable shop location With Reasonable Rent is a crucial step. But if someone chooses to franchising or purchasing an existing business option, the decision regarding the locality is preselected. In both cases, one should still do his research and decide whether the selected area is a good one.

2. Consider Traffic and Parking Issues

Unless someone plans to locate in a mall or any high-pedestrian traffic street, it is vital to think carefully about parking options. This is because if a customer has to face difficulty to get to the shop or in finding available parking nearby, they will move elsewhere. Therefore, it is essential to find a convenient, highly visible location with plenty of parking so no one can change their way towards competitors. 

3. Serve a High-Quality Product

No one could ever succeed without serving high-quality coffee drinks, no matter how good other things are planned. When opening a coffee shop, a business owner must consider that coffee lovers want a unique taste than a regular one. 

Furthermore, given the demands of customers, a business owner must attract a regular clientele by consistently serving the best coffees, teas, and snacks. 

Consider you might need to:

  • Invest in the best quality espresso machine and related equipment like water filtration systems, grinders, etc.
  • Source the high-quality roasted beans.
  • Serve snacks and fresh pastries.
  • Ensure having a well-trained and experienced staff
  • Offer coffee favorites such as frappés, chai lattes, etc.

 4. Provide Great Customer Service (THE HALLMARK)

Nothing could beat an excellent customer service, especially in the food industry. But what makes good customer service? Combine top quality products, in addition to a warm welcome and fast service and, chances are, a business owner will built a good reputation in the market. 

5. Create a Relaxing Atmosphere

According to surveys, most entrepreneurs believe that atmosphere of coffee shops is one of the biggest attractions for customers. Let’s take an example of Starbucks’ relaxing and cozy atmosphere that is one of the significant contributors to its success.

Go into any popular coffee place on weekends and, chances are, groups of students are already present their, busy doing assignments. The ideal atmosphere is a clean place with natural lighting and comfortable seating arrangements. 

Consider using a mix of seating and table types so the shop can accommodate single as well as groups together. Unless a new business owner is a design pro, consider hiring an interior decorator to design the premises. After all, it is vital to have that distinctive, personalized ambiance to draw customer’s attention. 

Design elements include; layout, lighting, furniture, decorations, flooring, etc.

6. Offer a Variety of Fresh Snacks

When in the planning phase of ‘how to start a coffee shop business’ a person have to realize that, a coffee shop cannot survive alone on just coffee sales. To become a successful businessman, multiple sales are a must-have. 

Keep quality snacks at the counter display that will tempt the people to make an additional purchase.

What goes well with coffee include:

  • Cookies
  • Cinnamon Buns
  • Muffins
  • Cakes
  • Bagels
  • Croissants
  • Scones
  • Granola bars
  • Cold drinks
  • Yogurt cups and parfaits

7. Offer Loyalty Cards

Having a loyalty card program acts as an icing on the cake for any business to be successful. This will help business owners to build up a clientele in a very short period. Offering a free espresso to loyalty cardholders; after 10 prior purchases will make the customer happy. 

Furthermore, it 

  • Encourages customers to come more often
  • Encourages regular customers to spend more
  • Results in more profits

Make sure to use high-quality cards that have a logo and business name printed on it. 

8. Serve on the Front Line

Customers love to see owners face. When running a coffee shop or any restaurant business, the owner should be present and dress nicely. For many customers, seeing the owner taking orders, serving, and fully engaging with them builds confidence to visit again and again. Besides, one must also consider hiring a good manager.  

Final thoughts

Pass by any busy street, and you will see coffee shops be full of customers enjoying their favorite lattes, espresso, teas, and other beverages. Serving quality coffees with a variety of pastries and other snacks could take your business to the next level. 

If you are planning how to start a coffee shop business, this is your guide to follow. Thank you for reading!

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