Considerations When Thinking About Opening a Coffee Shop
If you’ve been day dreaming about running your own coffee shop or café, you’re not alone. Opening a coffee shop is a classic business idea that many people dream of, an there are thousands of successful examples of this business model across the globe.
Big cities and tourist areas are full of cafés that have been running for many years, and that’s why it’s one of the business ideas that go through the head of the vast majority of those who dream of starting their own small business.
But in business, nothing is simple, and although it is a business idea that theoretically has great chances to succeed, many people know that there is one glaring problem: competition!
The battle to win over coffee lovers exists on several levels. Just think about all of the places people grab their coffee: Traditional cafés, bars, restaurants, coffee vending machines, or mini cafes that apply the coffee-on-the-run concept. After introducing these different types of places people commonly get coffee, maybe the gears in your head are already turning! Here are some more considerations to think about if you’re considering opening a coffee shop.
Is the Market Right?
Regardless of the type of coffee shop you want to open, the first question you have to ask yourself is if there is a proper market. If you want to have a café in a town of 10,000 or 12,000 where there are already two restaurants and three bars, you have to think about whether the demand is simply there or not. So the first step you need to do is market analysis. Have you found a place with intense pedestrian traffic — especially in the morning — where you could start your business? Is the price reasonable?
Can I Afford to Open Up a Coffee Shop?
The second issue to consider is how much it would cost to get the business up and running. If you have found a great location for opening a coffee shop, you should know that nowadays, customers are becoming more and more picky. If you sell substandard coffee or even have something like uncomfortable seating, your chances of succeeding will greatly decrease. If you want your customers to invest in you, then you must also invest in them.
To be successful, you need to be willing to open a coffee shop that is more special than anywhere else they could grab a morning espresso. And whether we’re talking about the quality of the coffee equipment and coffee beans, or even the quality of lighting, furniture, and access to free wifi, you should expect to pay more up front for that ‘extra touch’ you’re business will need to succeed.
Will This Coffee Shop Have a Good ROI?
The next aspect to be considered is profitability. The goal of any business is to make profit, and the bigger it is, the better for the business owner. In a “traditional” business, the rule is simple: large investments bring high profits and small investments bring small profits. Of course, this statement is true only if the market analysis has been done correctly and the employees are in line with the expectations of the clients. Make sure to do your research, and don’t be afraid to hire outside help if you have any doubts or second thoughts.
So, is opening up a coffee shop the right decision for you?
If you’re thinking about opening a coffee shop, choosing your business model depends on the potential of the market, the money you can invest, and of course the managerial abilities. Invest your money according to the results of your analysis. Good luck!