Do you love coffee? Are you interested in turning that love for coffee into a new business venture, by perhaps opening your own coffee shop? The great news is that our favourite coffee news magazine, Daily Java.co has put together a great which guide outlines everything you need to know as a new coffee shop owner from industry trends to the legalities.
Opening a successful coffee shop can be a rewarding experience. Because of you, hundreds of friends will have great conversations, strangers will have forged new business relationships and love will be restored – all whilst sipping on a delicious coffee blend, they will have come to associate your coffee shop with. You’ll have more influence on society and your surrounding communities than you realise. All you have to do is get started!
This step-by-step guide to opening a coffee shop which will grow into the next Starbucks will help get you on the right track.
So where to start?
- Research Research Research
Coffee shop entrepreneurs always assume that opening a coffee shop is as easy has grinding beans and frothing milk! For the record, it is not, you have make sure that you research every last component of your operations to understand what drives your cost. Opening a coffee shop takes a significant investment in both time and money, in order for you to be successful. If you have never been in the industry before, it is essential that you spend time upfront understanding what it takes to run a successful café. You may have to reach out to existing coffee shop business owners and learn from their experience, find out what works, and what doesn’t. Most coffee shop owners are usually very sociable and it may be quite easy for you to extract some inside information quite easily.
Make your research fun by visiting as many local cafés as you can to gain insight into what you want your business to be like. Consider what you will take from other businesses, both from the large international chains as well as the smaller ones so that you can find out what is trending. Understand what will make you different. Learn about your customer base. Who will they be? What are their needs? What time of the day will be busiest? Knowing your customers well, will assist with planning, creating a menu, price points — everything really!
- So what are the key trends right now?
A coffee shop is way beyond coffee, the majority of coffee shop entrepreneurs offer a variety of products such as teas and smoothies, as well as a variety of foods such as cake, muffins and sandwiches. Other innovative trends which have been used to bring in larger crowds, especially gen Xers, is hosting events such as coffee tastings, book clubs and weekly game nights, poetry evenings, karaoke – similar to what Starbucks does. Another key trend within the market, especially among premium coffee industry players, is the use of coffee culture to drive socio-economic change and positively influence local communities. In South Africa, for example Vintage Coffee based in Pretoria, offers customers the opportunity to vote for the non-profit organisation (NPO) programme they would like to see receive the proceeds when they purchase an item from the shop.
- Write out your business plan
It’s tempting to skip the business plan, simply because it is ‘too much work. In reality, the real benefit in putting together a business plan is less about the final document, and more about the process. It doesn’t have to be a 100 page document, you can have a single page business plan or diagram. The process of writing a business plan helps you really understand your local market and allows you to take a closer look at the numbers you need to make the business successful. A business plan will guide you through each stage of developing and managing your coffee shop, and will serve as a road map for how to structure, run, and grow your new business. Don’t be afraid to chat to your accountant or someone who has sound financial knowledge
- Say this with us “Location, location, location”
Location is critical to the overall success of any coffee business. Target a mall and it may drive traffic but it may not be financially viable. Target a corner store and it may not have any traffic and be cheaper. Before you make a decision, spend some time in the areas you’re considering. Make sure you pick a location that fits in with your overall vision and operations. If you want to copy the trends by creating a social environment for coffee tasting evenings, a mall may not be intimate enough. Like we said previously… “research, research, research”
- Get the right suppliers
Finding good, reliable suppliers is a key component of any business success. Try reputable businesses like Java Roasted Coffee who could supply you with a constant supply of beans. You’ll also need cups (paper and porcelain), napkins, coffee stirrers, teapots, syrups – the list will expand exponentially. To make it easier for yourself, make a list of all the supplies you need, be as detailed as you can, and include the recipes you may want to use. The list may seem overwhelming, but getting down to the nitty gritty (from pastries to napkin holders) will ensure that you’re prepared for anything. From there, you can begin to research suppliers until you find ones you love and who fit with your business philosophy.
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