How to Run Your Own Coffee Shop

Coffee shops require a large amount of storage and workspace, especially if you serve food or during peak hours. Base your spatial planning on what your needs will be during your busiest hours. Keep in mind you’ll need to pay for equipment, supplies, marketing, labor, taxes, and rent, all before turning a profit. Another key to success when planning how to start a coffee shop is to realize that, even though coffee and tea have a high markup, a coffee shop cannot survive on coffee sales alone. Most successful food service and retail establishments know to diversify their offerings.

How to Run Your Own Coffee Shop

Find the equipment you’ll need

  • Various factors, such as local regulations, supplier availability, and customer preferences, can influence the success and operation of a cafe.
  • After understanding your concept, location, menu, and coffee equipment needed, you’ll want to put this together in a budget.
  • A business plan shows that you’re serious about what you want to do, you’ve done your homework, and gives structure to an otherwise intangible idea.
  • In that case, a local corner coffee shop might be calling your name.
  • If you’re looking to start a Coffee Shop, you’ve come to the right place.
  • The exception to this is smaller spaces that may be more affordable.

A key real estate principle critical to the success of a business is “location is key”. Therefore, your company should be within reach of your target audience. In addition to attracting customers, you also want to attract and retain good employees. The time has come for you to turn your dream into a reality; you’re starting a coffee shop. A business plan outlines the goals, objectives, and strategies for operating and growing your business.

Step 3: Find the right location.

Your brand is what your company stands for, as well as how your business is perceived by the public. When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Create a Timeline To Open Your Coffee Shop

It’s also now easier than ever to set up a simple store or pop-up with limited equipment – taking payment on your phone using a mobile card reader, for example. This means that starting your own café or coffee shop is becoming an increasingly accessible (and affordable) venture. They may want a place to relax and read the paper, get together with an old friend, study for a test, or work remotely.

How to Run a Successful Coffee Shop: Expert Tips and Strategies

How to Run Your Own Coffee Shop

Other beverages and food items make up another 45% of revenue, and other items such as mugs and packaged coffee round out the remainder of industry revenue. Running a coffee shop efficiently and effectively often involves using various software tools and platforms to manage orders, inventory, customer relationships, and finances. Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

Do you want to tell the story behind your drinks as part of your branding, or keep it simple and put all of the focus on the items themselves? On the subject of branding, your menu is an excellent opportunity to display your coffee shop’s theme and personality. These choices should reflect the overall look and feel of your coffee shop. After establishing when your location is the busiest, it could be helpful to tailor your menu to this time of day.

Choose the Name for Your Coffee Shop Business

By utilizing the knowledge from real-world coffee shop owners, you’ll gain the valuable resources you need to plan, start, and launch your own coffee business. Our comprehensive coffee shop startup kit is packed with hours of audio interviews. We are confident that the information may help you avoid first-time coffee shop owners’ most common budget-busting mistakes. Now it’s time to identify your target market and decide how you’ll make your business stand out. If you want to build a successful business, you can’t try to offer everything to everyone. It’s better to narrow in on one specialty and strive to do it better than anyone else.

  • Registering as an LLC before applying for permits and licenses establishes your business as a separate legal entity from yourself.
  • By creating a clean and unique exterior, you’ll begin to create a buzz in your community.
  • The main advantage of a C Corporation for a coffee shop is that it offers limited liability to its owners.
  • Maybe your idea is entirely unique; you’ve never seen anything like it anywhere.
  • For efficiency, food items should either be pre-made or purchased from vendors.
  • When incorporating all of these elements into your menu, aim for a layout that is visually appealing, clear, and easy to navigate.

For more startup tips

Offer a rewards system, such as a punch card or a digital app, where customers can accumulate points or stamps for each purchase, redeemable for free or discounted items. Customize the loyalty program based on customer preferences, like offering discounts on popular menu items or free refills. Additionally, celebrate special occasions like customers’ birthdays, offering them personalized discounts or freebies to further strengthen customer loyalty. When incorporating all of these elements into your menu, aim for a layout that is visually appealing, clear, and easy to navigate. Proper formatting will ultimately lead to a better customer experience and support the success of your coffee shop.

How to Run Your Own Coffee Shop

Unlike other retail businesses, a coffee shop is very much a member of the community. And you want every single coffee drinker in your vicinity coming in for your coffee and scones. Plan your space for mothers and their kids, coffee shop accounting for young professionals and their laptops, or whatever average customer comes in. For a detailed step-by-step guide on how to run a coffee shop and coffee shop ideas, read our comprehensive guide on how to open a café.