10 Things to Consider When Opening a Cafe
“How hard is it to open a cafe?”
This question may have popped into your mind at least once, especially when you frequent local coffee shops for delicious iced coffee, or to just bask in the relaxing ambiance. Seeing shop owners effortlessly lead a business has probably made you wonder if you can do the same. The answer will always be that you can, but it’s challenging!
Opening a cafe business requires a master plan, preparation, and sustenance. A significant capital investment is also needed to kickstart the project.
How Much Does It Cost to Open a Cafe?
According to Toast, you’ll need somewhere between $80,000-$300,000 to launch a seated cafe. If your goal is to open a coffee shop with in-store seating and a drive-thru, then your projected bill may exceed $300,000.
Location, labour costs, and equipment are some factors included in the expenses to open a cafe. Let’s further break it down.
A Step-by-Step Guide
1. Dive Deep Into the Coffee Business
Before you open a cafe, research and continuous learning about the coffee business is vital. Reading online articles and watching documentaries are great ways to learn about coffee trends. Consider enrolling in classes and workshops to get a first-hand experience of the business side of opening a cafe.
2. Devise a Business Plan
Next, you need to create a business plan. Hiring an expert can help you save time and avoid losses as their expertise guides you through the process. Searching “how to start a coffee shop business plan” on Google might also be helpful.
3. Choose the Best Location for Opening a Cafe
The location of your cafe is directly related to your opening costs. Opening a coffee shop in a small town is cheaper than in cities, but requires more promotion to get customers. Some other considerations include analyzing the local market—does this area of town need a cafe? Are there many competitors? What is the customer demographics of the area? There may also be specific zoning laws and regulations for opening a cafe that you’d need to find out about.
4. Find the Best Food and Beverage Suppliers
Find trusted food and beverage suppliers to provide your ingredients. Take your time searching for the right ones, whether you’re building partnerships with local farms and other small businesses, or would rather go the wholesale route. Don’t forget to expand your network to gain better supplier leads.
Planning your coffee drinks menu will be a breeze when you know you have the materials you need. Getting a complete list of ingredients from your suppliers will inspire you to produce interesting and seasonal menu items.
5. Source Commercial Cafe Equipment
In addition to ingredients, you need a reliable source for quality food service equipment to open a cafe successfully. Here’s a list of essential items to get you started:
- Espresso machine
- Decanter
- Blender
- Ice maker
- Coffee grinder
- Coffee maker
- Coffee brewer
- French press
- Thermal carafe
- Flatware
- Glassware
- Dinnerware
- Descaler
If you want an all-in-one cafe equipment provider, Shop at S.T.O.P. has everything you need for kitchen and front-of-house supplies! Get service apparel, plates, cutlery, and more here.
6. Create a Floor Plan and Theme
A floor plan represents the functionality and efficiency of a cafe. This maps out a customer’s path and how the employees will work around the shop. A practical floor plan creates good indoor ergonomics, making your cafe more inviting.
Additionally, consider having an aesthetic niche for your cafe to improve its aesthetics.
7. Acquire a POS System
Before you open your doors to customers, have a Point of Sale (POS) system ready at the checkout station to process successful transactions. The most common POS machines are cash registers and electronic POS terminals for credit and debit cards.
8. Obtain Relevant Licenses
You need to secure the proper permits and licenses to open a cafe for legality’s sake. Filing these documents boost your credibility and customer attraction as governmental agencies recognize the legitimacy of your business. It will take time to get permits and licenses, so get started on them as soon as possible to open your business on schedule.
9. Hire Reliable Employees
Running a cafe on your own is chaotic and almost impossible! Hiring employees can alleviate the workload and ensure that all business stations are supervised.
Be welcoming yet vigilant when interviewing prospective applicants. Trustworthy employees will play a massive role in maintaining the success of your cafe.
10. Learn the Ropes of Digital Marketing
As a cafe owner, you must be responsible for your brand awareness. This is where digital marketing comes into play. Using social media platforms like TikTok and Instagram can help you reach your target audience and raise awareness about your cafe. Share daily specials, seasonal menu items, staff profiles, and any updates with your followers in order to generate more foot traffic to your cafe.
Are You Ready to Open a Cafe?
Opening a cafe takes commitment, effort, time, and money. Shelling out a significant capital investment will likely both motivate and scare you!
While learning how to open a cafe can be overwhelming, Shop at S.T.O.P. is here to make the equipment-buying process simple. We offer a wide selection of high-quality kitchenware to ensure your new cafe is equipped to succeed.
Got any questions? We’d love to hear from you!
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