Opening A Coffee Shop In 6 Easy Steps (Complete Guide)

Sharing is caring!

When you’re thinking about beginning a food and beverage business, opening a coffee shops can be one of the best alternatives. All things considered, coffee shops and cafes are the fastest and quickest growing concepts and checking in at 7 percent growth for every year as of 2011 and you should really think of opening a coffee shops. But as you surely understand there’s a whole other world to beginning a successful business than simply having an idea in your mind. There should be proper planning, development, strategies should be involved etc. It helps to translate various start-up costs that you have to bear from every direction.

So the question arises here is how much does it cost to start a coffee shop and how to start a coffee shop? The straightforward answer, as per the successful coffee shop Crimson Cup is somewhere in the range of $80,000 and $250,000 and it totally depends on the service, equipment, size and other considerations that differ from business to business and this is the answer to how much does it cost to start a coffee shop. In this article we are going to answer how to open a coffee shop in easy steps.

how to start a coffee shop

Some of the ranges for the expense of opening different kinds of coffee businesses can be

☕ Mobile coffee food truck

  • It ranges from $50,000 to $1,50,000

Coffee stand/ coffee Kiosk

  • It ranges from $60,000 to $1,00,000

Drive-thru coffee shop

  • It ranges from $80,000 to $2,00,000

Coffee shop with seating

  • It ranges from $80,000 to $2,75,000

Coffee shop with drive-thru and seating

  • It ranges from $80,000 to $3,00,000

how to open a coffee shop

There are different phases to open a coffee shop which can be

1) Phase 1

Write a business plan

Starting a business requires making a comprehensive business plan even when you are starting a coffee shop. A business plan or business strategy is in excess of a proposal of funding. It’s an approach to list out the means that you’ll have to take to open a coffee shop. It’s also an essential time to think about whether opening coffee shops is genuinely right for you or not. You might think about how much a coffee shop proprietor makes when you are starting a coffee shop.

The amount that you will make depends on how quick you are able to attract the client base, your break even point and overheads cost, payroll, equipment costs etc. Because of the fast growth of this industry a coffee shop’s return on investment has high potential but that does not mean that every coffee shop will be successful. It takes careful oversight, smart budgeting and hard work to maximize your return on investment.

2) Phase 2

Finding and developing space

The cost to open a coffee shop depends on the size, location as well as the availability of space also. The different types of cost can be cost of buying or renting a commercial space, cost of paying utilities, renovation cost etc. These are the costs that have to be covered in the early stages of beginning your new business.

3) Phase 3

Purchasing equipment’s

To open a coffee shop, purchasing equipment’s are also necessary. Some of the pieces of equipment’s that are required to run a coffee shop can be

  • Water filtration system
  • Espresso machine
  • Commercial coffee grinder and drip coffee maker.
  • Some other coffee machine for coffee shop.

Buying equipment’s for coffee shop when you are opening a coffee shop can be a tough task as it is difficult to decide what you want and how much of it to purchase. Initial stocks and other supplies can be

  • Coffee beans

☕ Tea           $1000

☕ Coffee      $1000

  • Cups

🍵 Paper cups

🍵 Containers

🍵 Napkins

🍵 Straws

🍵 Stirrers

🍵 Lids

🍵 Clear plastic cups

  • Packets of real sugar, cream, syrups, low-calorie substitute, spices like nutmeg and cinnamon etc
  • Food and drinks
  • Milk, cocoa powder etc.

There are also some costs that are concerned with your transaction technology when you are opening a coffee shop. There are various POS software that will give you an expense of $50 to $200 per month which is your answer to how much to open a coffee shop.   These are some costs that will solve your problem of how much to open a coffee shop. POS software appears to be costly for the time being but it will in general pay for itself as you maintain and run your business, making stock and exchanges simpler to track. Shopkeep also coordinates with programs like Mail chimp, Quick books and Sales force to manage marketing and accounting.

Additional overhead

There are various types of additional overhead. Keep in mind the expenses you accrued in renovation, installation and monthly rent. Sooner or later, you’ll include more fixed expenses in the form of an insurance and security system to protect your investment.

4) Phase 4

Finding vendors and staff

costs to vendors and staff add to the break even point. In this food and beverage industry, labor and food cost are termed as prime expenses. Prime costs when taken in terms of a percentage of total income should not be more than 60 to 65 percent. Most coffee shops when compared to other food and beverage business have an easier and simpler particularly when you don’t plan serving a wide menu of food with your coffee drinks. In many restaurants:

  • 60 to 65 percent of prime expenses go to labor work.
  • Beverage and food costs an average 28 to 35 percent of all the sales.
  • Regular coffee and beverages have a normal margin of 15 to 20 percent, and some specialty beverages have a average margin of 12 to 18 percent.

5) Phase 5

Marketing

once you have started a coffee shop, you will also be required to do marketing of your shop. You can hire various types of consultants that will help you in marketing.  You can subscribe to this software that will enable you to reach out to your customers also. Coordinates with email marketing devices like MailChimp that enables you to curate email records for as low as $20 every month.

6) Phase 6

Becoming Compliant

At last, you’ll need all the permission and grants to have the option to maintain and run your business, play music, serve food, and hire employees and so on. The primary permit that each business must obtain is a Employee ID Number (EID) and Business License. These enable you to work a genuine business with legal employees.

To legally run a coffee shop, A Food Service License and a Certificate of Occupancy are also required. In the event that you want to serve liquor as a part of a bar/ coffee shop idea which is popular now days, you’ll need an alcohol permit too. All of these licenses have an application costs that change between states so make a point to include that in your list of cost breakdown.

Conclusion

opening coffee shops

So this article is related to how to start a coffee shop. Opening coffee shops is not that difficult and the expenses to open a coffee may appear to be daunting and extensive at first. For how much to start a coffee shop you should know, at least $80,000 to begin a beverage and coffee business appears to be a lot of money and you probably won’t be happy with applying for loans of this size or a bigger amount. In any case, cafés and coffee shops have probably the high potentials for a significant profit for your investment in some other small businesses.

We hope this article on how much to start a coffee shop and cost to open a coffee shop would be helpful to you in solving your queries related to how to open a coffee shop as well as cost to open a coffee shop.

letsdostartup

Letsdostartup believes in the philosophy of business for all and is an endeavor to acquaint the entrepreneurs with new innovative ideas to begin startups and build them step by step into big booming businesses.
letsdostartup

Leave a Comment

shares